Definition of a Credit Control Area
You define a credit control area according to the areas of responsibility for credit monitoring. For each credit control area in the system, you enter akey , a name , and the currency in which the credit limit is to be managed in the credit control area. You select a four-character alphanumeric key. In the simplest case, each company code corresponds to one credit control area. In this case, we recommend that you use the same key for the credit control area as for the company code.
Each credit control area carries out credit control for one or more company codes and to enable it to do this you must assign the company codes to the respective credit control area.
Assigning Customer and Credit Control Area
Customers can be created in different company codes - the credit control area responsible for a given customer depends on which credit control area the company code is assigned. Customers that are created in company codes with a common credit control area are controlled by this one control area rather than by company code.
If a customer is created in several company codes that are assigned to different credit control areas, a separate credit limit is managed for the customer in each of the different credit control areas.