Make SAP Automatic Credit Management Work for You, Without Damaging Supply Chain Efficiency: Part 2

  • by Dr. Stef G.M. Cornelissen, MBA, SAP Business Consultant, Sperry Partners BV
  • November 1, 2006
Discover some best practices to help you organize your credit management in a way that benefits the supply chain.
Key Concept
A credit control area is an organizational unit you use to establish your credit management protocol in Accounts Receivable and Sales and Distribution. Within it, you set and control credit limits for your customers. A credit control area may contain multiple customer company codes, but you can assign each company code to only one credit control area.

Credit management is a vital part of any sales organization. I’ll look at credit limit calculation and show how you can organize your credit management using your SAP R/3 or mySAP ERP Central Component (ECC) system. The aim is to create a sensible way to finalize the design on the financial side without unduly hampering the supply chain.

Organizing your credit management involves three steps. First, define your credit control area by deciding how to manage credit. Then, determine how to set up new customers and define default credit limits. Finally, assign the credit control area to one or more company codes, depending on your requirements.

Dr. Stef G.M. Cornelissen

Dr. Stef G.M. Cornelissen, MBA, is an experienced international SAP business consultant from the Netherlands with certifications in FI, CO, and SD. He took part in important international projects involving the large Dutch multinationals. Before specializing in SAP, he worked as a management consultant and was a senior advisor to the Board of Directors of the University of Nijmegen. Stef's academic background is in business administration, economics, and organizational science. He is the owner of Bowstring BV and principal partner at Sperry Associates.

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