can we assign 1 credit control for multiple company codes

[Former Member]

hi,

sap gurus,

good afternoon to all

can we assign 1 credit control area for multiple company codes.

if yes can any body explain the pro's and cons of the assignment.

if no can any body explain the why?

its urgent plz.......

regards,

balaji.t

09990019711

[Former Member · Accepted solution]

Yes Balaji,

We can assign.

Here the risk categiry and terms of one credit control area will be applicable to all company code.

Credit Control Area

Definition

An organizational unit that represents the area where customer credit is awarded and monitored.

This organizational unit can either be a single or several company codes, if credit control is

performed across several company codes. One credit control area contains credit control

information for each customer.

Use

Credit and risk management takes place in the credit control area. According to your corporate

requirements, you can implement credit management that is centralized, decentralized, or

somewhere in between.

• For example, if your credit management is centralized, you can define one credit control

area for all of your company codes.

• If, on the other hand, your credit policy requires decentralized credit management, you

can define credit control areas for each company code or each group of company codes.

Credit limits and credit exposure are managed at both credit control area and customer level.

You set up credit control areas and other data related to credit management in Customizing for

Financial Accounting. For more information, see the Implementation Guide under Enterprise

Structure Definition or Assignment Financial Accounting and then Maintain credit control

area. You assign customers to specific credit control areas and specify the appropriate credit

limits in the customer master record.

Thanks,

Raja

[Lakshmipathi]

Dear balaji

If your credit policy requires [decentralized] credit management, you can define credit data for your customer for each company code.

If your credit management is [centralized,] you can combine your company codes in one credit control area. Credit management then regards the customer as valid for all company codes

If the credit control area includes company codes with different local currencies to that of the credit control area, the system converts the receivables into the currency of the credit control area. This also applies to the open order, delivery and billing values.

thanks

G. Lakshmipathi

[Former Member]

Hi,

U can assign one credit control area to one r more company codes. But company code should have only one credit control area.

Regs,

Ravi Duggirala

[former_member204513]

Dear Balaji,

Yes ,we can assign one credit controlling area to more than one company codes.

If you assign like this

The credit control will be Centralised

The credit limit amount of the company codes will get clubed in to one.

The credit control will takes place only on behalf of single credit control area.

I hope it will help you,

Regards,

Murali.