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Credit Control Area

by on August 24, 2013

An organizational unit that represents the area where customer credit is awarded and monitored.

This organizational unit can either be a single or several company codes, if credit control is performed across several company codes. One credit control area contains credit control information for each customer.

Credit control area is an organizational unit which checks the credit limit of the customer .One credit control area can include more company codes .That means the relation is one to many .

Define Credit Control Area: 

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IMG – Enterprise Structure > Definition > Financial Accounting > Define Credit Control Area

T Code: OB45

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Assign company code to credit control area:

IMG – Enterprise Structure > Assignment > Financial Accounting > Assign company code to credit control area

T.Code: OB38

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Credit and risk management takes place in the credit control area. According to your corporate requirements, you can implement credit management that is centralized, decentralized, or somewhere in between.

  • For example, if your credit management is centralized, you can define one credit control area for all of your company codes.
  • If, on the other hand, your credit policy requires decentralized credit management, you can define credit control areas for each company code or each group of company codes.

Credit limits and credit exposure are managed at both credit control area and customer level.

Customizing settings in Credit Management:

1. Transaction OVFL

Check which credit control area is assigned to the sales area.

Sales area:

Credit control area:

2. Transaction XD02 or VD02

Check which credit control area is assigned to the payer.

Payer:

Credit control area:

3. Transaction SE37

Is user exit EXIT_SAPV45K_001 being used

4. Transaction OBZK

For the settings under items 2 – 4, field “All company codes” must be marked in Transaction OB45, or the credit control area must be entered under the relevant company code in table T001CM of the credit control areas allowed.

Company code:

Credit control areas allowed:

11. Define document groups for credit checking -T.Code: OVA6

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The document credit group is used to combine different document types for the purposes of credit management processing.  As a standard part of the SAP system, documents are classified into three document groups:

  1. Orders
  2. Deliveries
  3. Goods Issue

The custom document groups can also be defined here.  The document group is assigned to a document type (in transaction OVAK and OVAD, which are explained later).  The document group is used in conjunction with the risk category in the credit master data and the CCAr to define the automatic credit checks carried out by the system.

7. Transaction OVAD, “Assign document types to document group – Deliveries Types”

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Define which delivery types are eligible for credit checking by assigning the credit check to the  document group.

Delivery type:

Credit group for delivery:

Credit group for goods issue:

8. Transaction OB01, Define Risk Categories.

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Credit management/Change risk category

Definition of the risk category for each credit control area. This risk category can be assigned to a credit account by using Transaction FD32.

9. Transaction OVA8, Maintain Automatic credit control (individual credit checks for key fields)

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Here, the individual credit checks for key fields

o credit control area

o risk category

o credit group are set. Take these key fields from the above settings and go to the detail

screen. In particular, check whether fields “Reaction” and “Status/block” are set correctly. To carry out follow-up actions in case of a credit block, the credit check status must be set (field “Status/block”).

10. Transaction FD32

Credit master data for the payer of the relevant document.

Credit account:

Credit limit:

Risk category:

Currency:

12. Transaction OVA7

Update of the credit value is active for the corresponding item type if the check box is marked. This field corresponds to

field “Active receivable” in Transaction VOV7.

Item type:

Active receivable:

13. Transaction V/08, Maintain pricing procedure for credit management

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In the pricing procedure used for pricing, subtotal “A” must be entered in a line for determining the credit value (mark the pricing procedure and doubleclick on “Control”). Usually, the net value plus taxes is used. This way the system is determined to use this subtotal for credit pricing. The credit price is stored in field VBAP-CMPRE and used for update and credit check. You can find the used pricing procedure of the order under “Item -> Condition -> Analysis”.

Pricing procedure:

Line with subtotal = ‘A’:

15. Transaction OMO1, Updating: Sales Information structures

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Check which kind of update customer has chosen for structure S066 (Open orders: credit mgmt)? In any case, “Synchronous update (1)” HAS to be chosen as the kind of update. All other settings will lead to errors.

Info structure S067 (Open deliveries/billing documents). This takes its values from S066.

SALES                         S066

DELIVERY                 S067

BILLING                    S067

Transaction: OB12 – Credit management groups (to group customers)

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Freely definable grouping term used to group customers together.  Customers can be allocated to a credit group. All customers within a credit group are treated in the same way within credit management. The credit group is assigned to a CCAr.

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2 Comments
  1. I am not sure where you are getting your info, but good topic.
    I needs to spend some time learning more or understanding more.
    Thanks for fantastic info I was looking for this information for my mission.

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