Answer / jameer1980

For every business giving the credit is the common
factor.But as a company we need to check the customers
payment track record and the type of customer he is.For
that purpose the credit and risk management concept is used.

For that one credit control area will be defined assigned
to company,and who ever the customers are there in the
company will be assigned the CCA,and the credit limit will
be specified for each customer,and basing upon that credit
limit the tracking of the payment is going to take place.

If any customer the credit limit exceeds and he is not
paid the amount.The sales order for that customer will be
blocked due to the exceeding credit limit of the customer.

Answer / avinash

in business to the grant credit to the customer is quite
common. while granting credit business should be cautious.
to avoid this kind of situation SAP delivered a feature
called credit management. in this topic business issue
credit according to the risk category wise. and FI peoples
mainain credit control areas to evaluate the credit.
according to credit amount taken by customer we can
categorise high level risk, medium risk , low risk. and one
credit control area having no. of company codes as well as
one company code having no. of credit ctrl areas here the
relation is many to many.
send me if any wrong... avi88mba@gmail.com

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