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

Active Participant
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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..

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Active Contributor
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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.


COMP - Group Comp





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.

Active Participant
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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

Active Contributor
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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: