BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
An organizational entity which grants and monitors a credit limit for customers
A
Client
B
Company Code
C
Chart of Accounts
D
Credit Control Area
Explanation: 

Detailed explanation-1: -Definition. A credit control area is an organizational unit for specifying and controlling customer credit limits. A credit control area can include one or more company codes.

Detailed explanation-2: -The organizational unit used in credit management is Credit Control Area. It represents the area where customer credit limits are specified and monitored.

Detailed explanation-3: -In SAP FI, Credit Control is used to specify and control the customer credit limits. A credit control area can include one or more company codes. It is not possible to divide a company code into several credit control areas. The credit control area is used for credit management in AR and SD components.

Detailed explanation-4: -In this activity, you specify the customers for whom the credit limits are to be maintained and specify credit control area of the customers. SAP Menu => Logistics => Sales and Distribution => Credit Management => Master Data =>FD32-Change.

There is 1 question to complete.