FSCM credit management -- currency of credit control area and credit segments

[Former Member]

Hi,

We are using FSCM Credit Management. I wanted to understand what is the use of currency assigned to credit control area in FSCM credit management. As per my understanding, the currency of the credit segment is relevant since in FSCM the credit limit is monitored at credit segment level. Hence the currency assigned to credit control area does not have any significance.

Please let me know if my understanding is incorrect. if yes, then what is the relevance for currency in the credit control area and what if it is different from the currency of the credit segment.

Thank you!

Kind Regards

Aman Goel

[andrada_coman]

Hi,

You are right, there is no direct link between credit control area currency and segment currency, when defining it.

Credit control area currency is the currency in which credit is managed. Segment currency is the currency in which transactions are managed. The idea is that credit control area is an organizational object quite old, created in the previous FD32 design. We still have it in S4, but the idea in the future is to eliminate it and to use only credit segment object.

When you do the assignment of credit control area and credit segment (program SAPLUKM_PI_SEGMENT), you have again a currency column that links these two.

The amount in the exposure list will be reflected in the currency of the credit segment (EUR). The conversion is done based on the transaction date of the sales order, at the exchange rate maintained in credit segment parameters (usually M).

The credit limit is maintained as well in the currency of the credit segment.

Important to mention is that exposure is getting captured at a point in time, when conversion is happening. That means there is no reevalution of the exposure (until maybe you update the sales order value).

Hope that helps,

Andrada

[former_member804776]

Hi Andrada,

So from the Org structure perspective Best practice is 1:1 relation between Credit segment and Credit control area and we can specify the same currency in both places ?

In which scenario would we really need a 1:N relation between Credit segment and Credit control area and especially if their currency assignments vary ? Is there any SAP KBA explaining the currency impacts .

Thanks in Advance !

Regards

Jasmit Sarna