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Credit control area means? What is the relationship exists
between credit control areas and company codes?

Answers were Sorted based on User's Feedback



Credit control area means? What is the relationship exists between credit control areas and compa..

Answer / ramana

outstanding recievables can spoil the business process. to
control credit limits in sap system we can configure credit
control area.
one company code can hav one credit control area only
but one credit control area can hav many company codes
i.e. u can assign one credit control area to many company
codes.
the relationship is one to many

Is This Answer Correct ?    45 Yes 5 No

Credit control area means? What is the relationship exists between credit control areas and compa..

Answer / manojkumarguin

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 .

Thanks
manoj

Is This Answer Correct ?    21 Yes 1 No

Credit control area means? What is the relationship exists between credit control areas and compa..

Answer / m.n.reddy

A Credit Control Area is an organisational unit that is
compraised of one or more company codes.A company code can
have no more than one credit control area.

Is This Answer Correct ?    35 Yes 16 No

Credit control area means? What is the relationship exists between credit control areas and compa..

Answer / srikanth

all the above answers are absolutely right

In my point of view
CCA is the area where one can enter the amount.

ex: amount is 15,000

Now ,customer makes an order of 14,000 price of materials

then the order is created.

in a case customer makes an order of 16,000 price of
materials
the system will generate an error saying customer CCA is
reached.


if i am wrong please correct me.

Is This Answer Correct ?    12 Yes 7 No

Credit control area means? What is the relationship exists between credit control areas and compa..

Answer / venkata subbaiah

this is c.Venkat(kadapa)

1. credit control area is an organizational unit which
specifies the credit department.
2. every company has single credit department, but the
single credit department can take care of multiple companies
credit activities.
i.e, one credit control area can assign to many company
code, but one company code can be assigned to single credit
control area.

regards
venkat

Is This Answer Correct ?    3 Yes 0 No

Credit control area means? What is the relationship exists between credit control areas and compa..

Answer / sandeep

use Transction FD32 for creating condition record for
maintaining customer crdit limit.

Is This Answer Correct ?    5 Yes 5 No

Credit control area means? What is the relationship exists between credit control areas and compa..

Answer / nareshe

Due to risk of payments we have to maintain credit control area , it is responsible organisational element which take cares of all credit management activities with in the company code ..
And one company code can have own credit control area or multiple company codes can have same credit control area.

Thanks
Naresh

Is This Answer Correct ?    0 Yes 0 No

Credit control area means? What is the relationship exists between credit control areas and compa..

Answer / mvsurya

CREDIT CONTROL AREA MEANS IT IS AN ORG. UNIT WHICH SPECIFIES THE GROUP OF PEOPLE FOR CREDIT CONTROLLING ACTIVITIES.
*THE RELATIONSHIP BETWEEN CCA TO COCD IS ONE TO MANY (IN CENTRALIZED CREDIT PROCESS)
*THE RELATION SHIP BETWEEN CCA TO COCE IS ONE TO ONE (IN DECENTRALIZED CREDIT PROCESS)

Is This Answer Correct ?    0 Yes 0 No

Credit control area means? What is the relationship exists between credit control areas and compa..

Answer / sunil s

Credit Control Area is a component, with which we can decide
the credit limit to the customers. One CCA can be assigned to
multiple company codes. On the other hand, one company code
can have only one CCA.
But still, if the company wants to have different
credit limit with different customers, it can be mapped with
the CCA field on the customer cards.
So, The relationship between CCA and company codes is one to
many.

Is This Answer Correct ?    2 Yes 3 No

Credit control area means? What is the relationship exists between credit control areas and compa..

Answer / christine kendall

Credit control areas and company codes are separate organisational structures. Company codes relate to the accounts receivable and credit control area to the management of risk/credit. 2 separate functions.
One company code can have one or more credit control areas and credit control areas can have more company codes. However, Individual customers can only be assigned to one credit control area but could also trade with multiple company codes depending on how the parent company is organised.
In my org we have one company code trading with customers based in different countries and using different currencies so there is one credit control area for each currency all within a single company code.
The flexibility of the system is a SAP strength.

Is This Answer Correct ?    0 Yes 1 No

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