cancel
Showing results for 
Search instead for 
Did you mean: 

Credit management for multiple company codes under one Credit control area.

former_member585451
Active Participant
0 Kudos

Dear Guru's..

I have a situation here which requires expert guidance.

My client has 4 line of businesses under the same group of companies umberalla.

Example Group Company - COMP.

under this group COMP, there are CMP1, CMP2, CMP3, CMP4 as 4 different company codes as per legal restrictions.

All individual companies have different products to be sold and have their own balance sheet at the end of the year.

So far so good.

But, when it comes to credit management, client is asking for a solution like this:

With 1 Credit Control Area - CCA1 (all 4 company codes assigned to this).

There has to be a total limit on Credit control area - CCA1 - 10000 USD.

But each Company code should have sub limits like CMP1 - 1000, CMP2 - 3000, CMP3 - 2000, CMP4 - 4000.

As there are customers buying from all 4 company codes .. So, each customer should have one global limit called 10000 and that should be split into individual limits as per company code.

If the credit limit is exceeded in one company code, system should give relevant message.

Having a global limit is good enough, but how is it we could check for the cub levels?

Kinldy advice..

Pl let me know if u need any additional details..

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi

First of all crdit is maintained on the basis of CREDIT CONTROLL AREA not on basis of company code.

How ever for your scenario there is rounding the way solution.

go to IMG >>> Defination >>> Financial accounting >>> define credit controll area >>> Select & go in Details, TICK Mark to ALL COMPANY CODE.

Now go to FD32 - Central data

Maintain Here total amount (in your case Global limit 100000 USD)

Maintain Indivisual limit (1000 USD)

Hope this will solve u r requirement

Kapil

former_member585451
Active Participant
0 Kudos

Hi Kapil,

I can see a point here, but is there any place we are relating the individual limit to any specific company code?

Coz, when I create a credit limit, that is created for a credit control area and no company code is displayed there..

So, how is it that ur solution would restrict the customer buying products over a certain limit inany company code?

Kindly help me understand. Infact I tried to use this earlier without the All company code check box, but that didnot work.

Harsha

Former Member
0 Kudos

Hi,

Create four controlling area for 4 company code & assign

You are maintaining limit in one credit controll area atemately for company code.

Kapil

Answers (3)

Answers (3)

Former Member
0 Kudos

Dear Harsha,

We have same kind of scenario,

It requires lot more configuration part.

We maintain 1000 in Central Data.

As per division wise we have configured and we set credit limit division wise.

We have division 10,20,30,40 which is nothing but credit control area.

We maintain credit limit 10 - 100, 20 - 400, 30-300,40 - 200 in credit control area in FD32.

Its a big scenario cant explain you in details.

thanks

Shri...

reazuddin_md
Active Contributor
0 Kudos

Your requirement can achive,if you have Credit control area wrt:each comp code. & you can restrict the Customer with one Global limit as per your req.

Eg:

COMP - Group Comp

CMP1- CCA1

CMP2-CCA2

CMP3-CCA3

CMP4-CCA4

While creating Customer Credit Master - FD32

Maximum permitted Credit limit - $ 10,000

Individual permitted Credit limit - * here you can maintain per credit control area, how max you can maintain eg:Credit control area should not exceed $ 5000.

now, create FD32 for each credit control area-

eg: CCA1 - $1000 / CCA2- $3000 etc..,

it can be done, only if you have multiple credit control areas per comp code.

former_member585451
Active Participant
0 Kudos

Dear Reazuddin..

Thank you for this reply.

This was the first way we proposed the solution to the client, which they didnt approve.

They were not happy with multiple Credit control areas. So, we couldnt sell this solution.

Is there a work around or a development that we can use here if we have to go with 1 credit control area and 4 company codes as is explained in the beginning of hte thread?

- Harsha

reazuddin_md
Active Contributor
0 Kudos

Else you can either make use of USEREXITs in Credit Management,

User Exits For Credit Checks And Risk Management

Credit Check

If you want to carry out your own individual credit checks, that differ from those in the standard system, you must define them in the following user exits:

LVKMPTZZ

LVKMPFZ1: USER_CREDIT_CHECK1

LVKMPFZ2: USER_CREDIT_CHECK2

LVKMPFZ3: USER_CREDIT_CHECK3

former_member585451
Active Participant
0 Kudos

Dear Moderators..

I tried posting it only once, but could see that there are 2 threads created.. Kindly delete one of the 2 threads.

thanks.