Answer Posted / jesu anil

Credit Management
A large number of outstanding receivables or bad debts can
have a not inconsiderable impact on
company performance. Using Credit Management, you can
minimize your credit risk by defining
a credit limit for your customers. This is especially
important if you do business with customers in
financially unstable sectors or countries, or trade with
countries that are politically unstable or that
adopt a restrictive exchange rate policy.

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.

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