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Answer Posted / shiba
You can assign a credit limit to a group of customers, as
well as to an individual customer. If a company has
different branches, you would define the credit limit for
just one customer in this group (the head office) and this
customer account then becomes the credit account.
Credit limits are normally specified by credit management
staff in the individual customer master records. You can
specify individual credit limits for each credit control
area. You can expand your credit control for a customer by
specifying a central credit limit for all credit control
areas to which that customer is assigned. The total of the
limits at the level of the credit control area must not
exceed the total limit for all credit control areas. The
credit limits at the control area level are checked during
sales order processing.
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