Credit Control Area
Definition
A
credit control area is an organizational unit for specifying and controlling customer credit limits. A credit control area can include one or more company codes. It is not possible to divide a company code into several credit control areas.Use
The credit control area is used for credit management in the application components Accounts Receivable (FI-AR) and Sales and Distribution (SD).
You define a credit control area according to the areas of responsibility for credit monitoring. For each credit control area, you enter a
key , 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 respective credit control area to the company codes.
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 for all company codes.
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.