Credit Control area is used for controlling the credit exposure of the company to a different operations with our partners. A prerequisite for defining a credit control area is the fiscal year variant which should be created or maintained already. One Credit Control Area could be assigned to several company codes. You could set credit limits on individual customers as well as based on whole market on which the company is operating.
Credit Control in FI is used to check the credit limit for the customer and it can use one or more codes. It is used for credit management in Application components such as Account Receivable (AR) and Sales and Distribution.
The credit control area is determined in the following sequence −
- User exit
- Distribution channel
- Customer master
- Company code for the sales organization
How to define a Credit Control Area?
A Credit Control Area is defined in accordance with the areas of responsibility for credit monitoring. Use the T-code SPRO → click SAP Reference IMG. It will open a new window.
Expand SAP Customizing implementation guide → Enterprise Structure → Definition → Finance Accounting → Define Credit Control Area → Execute.
IMG Path: Enterprise Structure -> Definition -> Financial Accounting -> Define Credit Control Area
Click Execute → New entries → Enter the below details → Save. Now you have successfully configured the Credit Control Area.
Once you create the Credit Control Area, the next step is to assign a company code to the credit control area.
Expand Enterprise structure → Assignment → Finance Accounting → Assign company code to credit control area → Execute.
A new window will open → click Position → it will open another new window. Enter the company code and click Continue.
Enter the Credit Control Area in CCAR and save the details.
You can create a SAP FI chart of accounts group as per your requirement. To effectively manage and control a large number of G/L accounts, you should use COA groups.
How to define Chart of Accounts Group?
There are two ways you can create a new COA group. The first method is to use the T-code OBD4.
You can also reach to this screen by following the path −
T-code SPRO → SAP Reference IMG → Financial Accounting → General Ledger Accounting → G/L Accounts → Preparations → Define Account Group → Execute → New window will open → New Entries.
Populate the following fields in the COA group: Chart of Account Key, Acct Group, Name, From Acct. and To Account details.
After providing the required details, click the Save Configuration option to create the COA group.