Define Credit Control Area

Credit Control Area: This is the area where credits offered to the customers are maintained and monitored. One company code cannot be share the credit limit from credit control area other than the CCA to which it is assigned.

Path:Enterprise structure > Definition > Financial Accounting  > Define Credit Control area
 Click on New Entries



up date the field and save

Path : Enterprise strcture > Assignmnt > Financial Accounting  -> Assign company code to Credit control Area

In Model Group Only Company code 2008 is selling goods and Credit control area is assigned only to this company code.
Definition

An structure unit that represents the world wherever client credit is awarded and monitored.

This structure unit will either be one or many company codes, if credit management is performed across many company codes. One credit management space contains credit management data for every client.

Use

Credit and risk management takes place within the credit management space. per your company needs, you'll implement credit management that's centralized, redistributed, or somewhere in between.

For example, if your credit management is centralized, you'll outline one credit management space for all of your company codes.
If, on the opposite hand, your credit policy needs redistributed credit management, you'll outline credit management areas every|for every} company code or each cluster of company codes.
Credit limits and credit exposure ar managed at each credit management space and client level.

You got wind of credit management areas and different knowledge associated with credit management in Customizing for monetary Accounting. For a lot of data, see the Implementation Guide underneath Enterprise Structure ® Definition or ® Assignment ® monetary Accounting and so Maintain credit management space. You assign clients to specific credit management areas and specify the suitable credit limits within the customer master record.

See also: Specifying Credit Limits by Credit management space

Credit and Risk Management Settings: summary

Structure

The following graphics illustrate the link between credit management space, company code, sales organization, client and currency for central or redistributed credit management severally.

Decentralized Credit Management

If your credit policy needs redistributed credit management, you'll outline credit knowledge for your client for every company code. within the graphic below, the client encompasses a relationship with 2 company codes:




You outline a currency for every credit management space. the link between credit management space, company code, sales organization and currency