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.
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.
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