Why credit control area is used for and why it is required in S/4 HANA when we are maintaining credit limit in credit segment? Secondly, can we do relationship between two BP's (Parent and Child) using two different credit segment? Thirdly, can we maintain same credit limit for both parent and child. Lastly, when we use main credit segment is it only when your BP is doing business in all the credit segments? Lastly, can someone explain about credit hierarchy in credit management what is the flow down.
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Duplicate Question - See details here SAP credit Management - Credit Segment and BP Relationships | Gaurav Learning Solutions (gauravconsulting.com)
Hi Vikram,
In the continuation to my above question I have another business scenario could you please throw some light in it.
I know it is a peculiar business scenario but could you please help us to provide the way forward to it
There is a BP under which 3 associates (A,B and C) are there. Associate - A required a material so what will be the option in SAP best practice:
Should Associate - A must be a BP to create a sale order?
a. How system will perform credit check also at which level? Is it at BP level or at associate level - (A) and the associate here is not a BP
2. Is BP is essential to perform the credit check in FSCM credit Management?
3. If associate - A failed to pay the due amount in stipulated period what will be the credit impact to the parent BP. When the associate is not a BP and secondly child/ associate is an independent BP (But associated with the parent BP)
Hi Abhay,
1. Why credit control area is used for and why it is required in S/4 HANA when we are maintaining credit limit in credit segment?
Answer: This is a technical requirement from SAP. We need to assign company codes to Credit Control Area and Credit Control Area to Credit Segment. There is no path to assign Company Code to credit Segment directly
2. Secondly, can we do relationship between two BP's (Parent and Child) using two different credit segment?
Answer: Yes
3. Thirdly, can we maintain same credit limit for both parent and child.
Answer: Yes
4. Lastly, when we use main credit segment is it only when your BP is doing business in all the credit segments?
Answer: Not necessarily with all Credit Segments, but more than 1 credit segment
5. Lastly, can someone explain about credit hierarchy in credit management what is the flow down.
Answer: Hierarchy is Credit Segment - Credit Control Area - Company Codes - Sales Areas
Regards, Team GLS