Credit Control Area

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: 


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

T Code: OB45


Assign company code to credit control area:

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

T.Code: OB38



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.


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


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”


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.


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)


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:


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


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


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)


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.

Financial Accounting Global Settings in SAP FICO

⇒Define Fiscal Year
⇒Define Posting Periods
⇒Define Field Status Variant
⇒Define Tolerance group for Users
⇒Define Document Types and Assign Number ranges
⇒Define Posting Keys
⇒Assigning all above to Company Code

⇒Define Fiscal Year

A period of usually 12 months, for which the company produces financial statements and takes inventory.
A fiscal year need not correspond to the calendar year. Under certain circumstances, fiscal years containing fewer than 12 months are also permitted (short fiscal year).

The fiscal year variant is used to define the fiscal year.

You can define the following using a fiscal year variant:

o How many posting periods are in a fiscal year
o How many special periods you require
o How the system determines the posting periods when posting.

In the definition, you allocate your posting periods to the calendar year.

Allocation control requires the same number of posting periods in the company code and
in the assigned controlling area.

This means that the number of posting periods in the fiscal year variants must be the
same in the company code and in the controlling area. The period limits for the two fiscal
year variants must also coincide.

You must define which fiscal year variant is to be used for each company code. To do
this, you must define the appropriate fiscal year variant (to contain no more than 16

Fiscal Year
Fiscal Year – Year Independent
Fiscal Year – Year Dependent

Normal and Special Periods
Normal Periods 1 to 12
Special Periods 13 to 16

Open/Close Posting Periods
Define Fiscal Year Variant
Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Fiscal year – Fiscal year Variant
T Code : OB29

Click ‘New Entries’
1. Select ‘V3’
2. Click ‘Copy as’
3. Change ‘V3’ as ‘SV’
4. SAVE the settings
5. Click ‘Copy all’
6. Press ‘Enter’

Assign Company Code to Fiscal Year Variant
Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Fiscal year – Assign Company Code to Fiscal year Variant
T Code : OB37

1. Click ‘Position’
2. Enter Co. Code
3. Enter FYV
4. SAVE the settings

⇒Define Posting Periods

A period within a fiscal year for which transaction figures are updated.
Every transaction that is posted is assigned to a particular posting period. The transaction figures are then updated for this period.

This describes the specifications for a posting period (for example, beginning and end).
Each company code refers to exactly one variant. Therefore, as many company codes as you require can use the same variant.
Define Variant for Open Posting Period
Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Documents – Posting Period – Define Variant for Open Posting Period
T Code : OBBO

Click ‘New Entries’
1. Enter 4 digit code
2. Enter Variant Name
3. SAVE the settings
Open and close Posting Periods
Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Documents – Posting Period – Open and close Posting Periods
T Code : OB52

Click ‘New Entries’
1. Enter 4 digit variant
2. Enter ‘+’
3. Enter starting Period
4. Enter Year
5. Enter Ending period
6. Enter year
7. Enter First Spl Period
8. Enter Year
9. Enter End Spl Period
10.Enter Year
11.SAVE the settings

Assign Company Code to Posting Period Variant
Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Documents – Posting Period – Assign Company Code to Posting period Variant
T Code : OBBP

1. Click ‘Position’
2. Enter Co. Code
2. Enter Variant Code
3. SAVE the settings

⇒Define Field Status Variant

A field status variant groups together several field status groups. You assign a field status variant to each company code.
The field status group specifies which fields are ready for input, which fields must be filled or which fields are suppressed when entering documents. This specification is known as the field status.

Define Field status Variant
Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Documents – Line Items –Controls – Maintain field status Variant
T Code : OBC4

Click ‘New Entries’
1. Select ‘0001’
2. Click ‘Copy as’
3. Change ‘0001’ as ‘SIVA’
4. SAVE the settings
5. Click ‘Copy all’
6. Press ‘Enter’

Assign Company Code to Field Status Variant
Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Documents – Line Items – Controls – Assign Company Code to Field Status Variant
T Code : OBC5

1. Click ‘Position’
2. Enter Co. Code
2. Enter Variant Code
3. SAVE the settings

⇒Define Tolerance group for Users

An accepted deviation from specified values. With reference to the key, tolerances for the entry of documents and the granting of cash discounts can be determined for all employees
of the group for payment settlement.

Define Tolerance Group for Users
Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Documents – Line Items – Controls – Define Tolerance group for Users
T Code : OBA4

Click ‘New Entries’
1. Enter Co. Code
2. Enter Currency ‘INR’
3. Enter Max Amount
4. Enter Amount
5. Enter Percentage
6. Enter Amount
7. Enter Percentage

⇒Define Document Types

The document type classifies accounting documents. It is noted in the document header.
Attributes that control the entry of the document or which are themselves stored in the document are stipulated for each document type. In particular, the number range assigned to the relevant documents is determined on the basis of the document type.

Define Document Types
Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Documents – Document Header – Define Document Types
T Code : OBA7

Click ‘New Entries’
1. Enter Doc Type
2. Define No. range
3. Define Rev Doc type
4. Define A/c type
5. Select Control fields
6. Select req fields
7. SAVE the settings

⇒Define Assign Number ranges

Number which identifies the number range for the number assignment.
The process by which numbers are allocated to business objects.
There are two types of number assignment:

o Internal number assignment occurs automatically in the R/3
o External number assignment is performed either by the user or an
external system.

Define Number Ranges for Document Types
Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Documents – Document Header – Define Document Types
T Code :OBA7

1. Double click ‘Doc Type’
2. Click ‘No. range info’
3. Enter Co. code
4. Click ‘Change Interval’
5. Click ‘Insert Interval’
6. Enter Sl No.
7. Enter Year
8. Enter From No.
9. Enter To No.
10. SAVE the settings

⇒Define Posting Keys

The posting key describes the type of transaction which is entered in a line item.
For every posting key, you specify properties which control the entry of the line item or are noted in the line item itself.
The most important properties which are derived from the posting key are:
o The account type
o The allocation to the debits or credits side
o The possible or necessary specifications which are to be entered in the line item.

Account Type

key that specifies the accounting area to which an account belongs.
Examples of account types are:
o Asset accounts
o Customer accounts
o Vendor accounts
o G/L accounts
The account type is required in addition to the account number to identify an account, because the same account number can be used for each account type.
Posting Keys and Account Types
Define Posting Keys
Menu Path: IMG – Financial Accounting – Financial Accounting Global Settings – Documents – Line Items – Controls – Define Posting Keys
T Code : OB41

1. Click ‘Create’
2. Enter Posting Key
3. Define Key Name
4. Define Debit/Credit
5. Define A/c type
6. SAVE the settings

Document Number Assignment

In the SAP System, every document is assigned a number that identifies it uniquely within a fiscal year and company code.

There are two types of number assignment:

  • External (by the user)- Need Auto generated Number confirmed by VR.

The accounting clerk enters the number of the original document during document entry. A prerequisite is that the document numbers are unique. The system checks whether the number entered already exists and prevents users from assigning the same number twice. Numbers assigned to documents that have been archived however, can be reused.

  • Internal (by the system)     

The system automatically assigns a sequential number.You use a number range to define how the document number is assigned. Each document type has a specific number range from which the document number is selected.

Internal number assignments would be assigned to all document types as per best practice. As company requirements yearly intervals will be created.

Document Type Description Number Ranges
AA Asset Posting 0100000000-0199999999
AB Accounting Document 0200000000-0299999999
AF Depreciation Postings 0300000000-0399999999
AN Net Asset Posting 0400000000-0499999999
AP Periodic  Asset Post 0500000000-0599999999
BP Bank Payment 0600000000-0699999999
BR Bank Receipt 0700000000-0799999999
CH Contract Settlement 0800000000-0899999999
DA Customer Document 0900000000-0999999999
DG Customer Credit Memo 1100000000-1199999999
DR Customer Invoice 1200000000-1299999999
DZ Customer Payment 1300000000-1399999999
EU Euro Rounding Diff. 1400000000-1499999999
KA Vendor Document 1500000000-1599999999
KG Vendor Credit Memo 1600000000-1699999999
KR Vendor Invoice 1700000000-1799999999
KZ Vendor Payment 1800000000-1899999999
ML ML Settlement 1900000000-1999999999
RA Sub.Cred.Memo Stlmt 2100000000-2199999999
RE Invoice – Gross 2200000000-2299999999
RN Invoice – Net 2300000000-2399999999
RV Billing Doc.Transfer 2400000000-2499999999
SA G/L Account Document 2500000000-2599999999
SB G/L Account Posting 2600000000-2699999999
SK Cash Document 2700000000-2799999999
SU Adjustment Document 2800000000-2899999999
UE Data Transfer 2900000000-2999999999
WA Goods Issue 3000000000-3099999999
WE Goods Receipt 3100000000-3199999999
WI Inventory Document 3200000000-3299999999
WL Goods Issue/Delivery 3300000000-3399999999
WN Net Goods Receipt 3400000000-3499999999
X1 Recurring Documents 9100000000-9199999999
Y1 Sample Documents 9200000000-9299999999

Recurring Entries

  • Some business transactions are repeated regularly every period or quarter such as rent and insurance .SAP gives the Recurring Entry option to make this entry one time and run it every period and have the same financial effect.
  • The following data never change in the Recurring Entry :  Posting Key – Account – Line item Amounts.
  • You enter the recurring data in a Recurring Entry original document and then run the Recurring Entry Program

Enter Recurring Entry: FBD1

Accounting ⇒ Financial Accounting ⇒General Ledger⇒ Posting⇒ Reference Documents ⇒ Recurring Document (FBD1)

Update the document as below,




After posting this entry you will get an message like : Doc:9100000000 was stored under 3300 company code,

Now we need to execute the Document Under F.14

Before execution F.14  just visit at FBD3 TCode with your recurring document number.


Give Document Number & Company code then press Enter

Then click on  Goto menu then press Recurring Entry Data, then you will get Display recurring Doc Popup box, what ever date you mentioned under First and Last Run date, same Date we have to key under F.14 Settlement period

Execute Recurring Document :  (F.14)


Click On Execute,

Then we ll get message “Session xxxxxx was Created”

Then Go to System menu ⇒ Select ⇒ Batch Input ⇒ Sessions

Then select the line item as below and Click on PROCESS


After that we ll  get one more popup as shown below Click on Process


  • Accounting documents are posted and recurring documents are updated with processing data (next run on and number of runs .)To display a posted document, use transaction code FBL1N.
Particulars Transaction Code
Recurring Documents
Creation of Recurring Document FBD1
Change Recurring Document FBD2
Display of Recurring Document FBD3
Display changes in Recurring Document FBD4
Define Document Change Rules OB32
Delete Reference Document F.56
Execute Recurring Entry F.14
Evaluating Recurring entry Documents F.15
Running Batch Input Session SM35

“Company Code vs Controlling Area”

What’s the difference between Company Code and Controlling Area?

Company Code
It is the smallest organizational unit in FINANCIAL ACCOUNTING (FI) for which a complete set of accounts can be created. It is the central organizational unit of external accounting within the SAP system. Normally, a company code is created for each company (legal entity). It is a mandatory and pre-requisite that at least one company code must be defined before implementing the Financial Accounting component. All business transactions relevant for Financial Accounting are entered, saved and evaluated at company code level. Therefore, it is at company code level wherein a complete set of financial statements (Balance Sheet, Income Statement, Statement of Cash Flows) can be created.

Controlling Area
Controlling Area in SAP is an organization that represents a closed system used for cost accounting purposes. It is an organizational unit in the Controlling (Management Accounting) separate and has different functions with that of the Company Code. One ore more Company Codes can be assigned to a Controlling Area.