Credit facility of an organization is managed by credit control area (CCA). SAP delivers different options to manage credit facility for a company. Credit facility can be managed at a group level or company code (CC) level or can be a combination of both. Based on the requirements it can be divided into followings;
- Mixed Management
If you manage your credit control at the group level then it’s called centralized credit management in which all the company codes under the group are managed by one CCA.
In decentralized credit management you manage your credit facility at company code (CC) level instead of managing it at the group level. These types of managements are done if your group is substantially big and each CC wants to manage its own credit facility.
If you are ok with both the above credit management then you can have a mixed credit management in sap in which you can assign one CCA to one CC and another CCA to more than one CC. This type of credit facility is called mixed credit management.
In SAP, CCA provides a method of granting and monitoring credit for customers. Such CCAs are created at the client level and assigned to one or more company code. However you can assign one company code to one CCA. More than one CCA can not be assigned to one company code.
- One CCA can be assigned to one CC
- One CCA can be assigned to more than one CC
- One CC can not be assigned to more than one CCA.
Credit limits are specified at the customer master data. In case it is assigned to more than one company code then we need to specify separate limits in customer master.
Currency in credit control area
Currency of the company code gets assigned to the CCA when you assign one CC to one CCA. However, you have a choice to define your own CCA currency different from the CC currency.
Where the company code currency is different from the CCA currency, transactions posted to customer master are converted to CCA currency.
Defining CCA is not a big thing. It’s a very simple process in SAP. You can define it with transaction code OB45 and assign it to company code through transaction code OB38.