How Credit Control in SAP minimizes credit risk

Multiple outstanding receivables or bad debts can have a considerable impact on company's performance.

Using Credit Control , you can minimize your credit risk by defining a credit limit for your customers.

In SAP , Credit and risk management takes place in the credit control area. If your credit management is centralized, you can define one credit control area for all of your company codes. On the other hand, if your credit policy requires decentralized credit management, you can define credit control areas for each company code or each group of company codes.

A credit control area, is used to define ,and control, customer credit limits.

We can Maintain Credit Control Area Master Data for a customer :

Enter Transaction Code FD32 in SAP Command Field

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In the next screen, Enter the Following
  1. Enter Customer Id for the Customer for which you want display the Credit Limits
  2. Enter the Credit Control Area
  3. Check Central data section
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In the next screen ,Maintain  the Credit Management Data for the Customer

Credit Control in SAP minimizes credit risk

 Press "Save" button from the SAP Standard Toolbar for save the changes made in the credit limits

SAP FICO Credit Control in SAP

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