Question { TCS, 4877 }

Why business use decentralised credit control Area

Answer

Assume there is a 3 companies in one client for Ex:
Reliance is a client and companies are communication ( A ),
petroleam

( B ) and investment ( C )..



1 customer like 200221 is the customer for all 3 companies
in A, B, and C..



Now, if you want to maintain credit limit centrally that
means if place order in A ,B or C system will consider
central limit i.e

1 Lacs is the central limit he place order in A 30K in B
40K now he can able use remaining 30K only he can't use
more then that if it is decentralised then they can
maintain credit limit to the cutomer individully depends
upon the bussines given by the cutomer, if place the order
in A also it will not effect to B and C .



I hope u understand, Basicallu they will maintain Credit
control area Centralised or Decentralized manner..