![]() So, if the customer transacts with company codes which are under the same credit control area, the limit is set for all the company codes combined together. Multiple company codes are clubbed under the same credit control area. This method delivers benefits such as the local payment cultures can be respected, each company code has the independence to make its own decisions. Hence, we can define credit limits for a customer separately for each company code. It represents the area where customer credit limits are specified and monitored.ĭepending on the relationship between credit control area and company code, the credit management can be categorized as:Įvery company code has its own credit control area. The organizational unit used in credit management is Credit Control Area. Note: SAP recommends the use of update group 000012 The exposure is finally reduced when the cash is applied against open A/R. When billing posts to accounting, the open billing value is subtracted and the open A/R value added to the exposure. ![]() When the order is billed, the open delivery value is subtracted and the open billing added to the exposure. When a new order is created, the open delivery value is added to the credit exposure.
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