How to Define Credit Control Area in SAP

In this SAP Tutorial, you will learn what is credit control area and how to define a new credit control area in the SAP ECC system & S4 Hana system using transaction code OB45.

Let’s learn what is a credit control area and why it needs to be implemented in SAP:

What is Credit Control Area in SAP

The credit-control area is an organizational unit that specifies and checks a credit limit for customers. The credit control area can include one or more company codes in SAP.

It is one of the important tools of accounts receivable (AR) that enables integration with sales organizations via company code.

Credit Control Area – Important points:

1. The credit control area enables the monitoring of the credit limit for customers.
2. You can define one or more credit control areas in SAP as per requirements.
3. One credit control area can be assigned to one more company code.
4. Company code can use only one credit control area.

How to Define Credit Control Area in SAP

Credit control area can be defined using one of the following navigation methods:

• Transaction Code:OB45
• IMG Menu Path:- SPRO –> Implementation Guide –> Enterprise Structure –> Definition –> Financial Accounting –> Define Credit Control Area.

Let’s learn:

• Creation of credit control area in SAP ECC System
• Creation of credit control area in SAP S4 Hana system

Create credit control area in ECC System

Step 1:– Enter T-Code SPRO in the Command field and press enter

Step 2:- Click SAP Reference IMG

Step 3:- Follow the IMG Menu path

Step 4:- In the next screen click on new entries

Step 5:– On new entries of the credit control areas screen, update the required data

1. Credit-Control area:- Enter four digits credit control area code

2. Currency:– Update the currency of the credit control area.

3. Credit limit:- Update the credit limit amount for the customers.

Step 6:– Click on the save icon to save the new credit control area

Successfully credit control area created in the SAP ECC system.

Creation of Credit control area in SAP S4 Hana System:

Let’s learn how to define a new credit control in the S4 Hana system

Step 1: Log in to your S4HANA system,

Step 2: Execute the transaction code ‘OB45‘

Step 3: On the change view ‘credit control area’ screen, click on the new entries icon to define a new credit control area in the S/4HANA system

Step 4: On the new entries credit control area configuration screen, update the following details:

• Credit control area key
• Currency
• Data for updating SD
  • Credit update for open order/ delivery/ billing document
  • Fiscal Year variant
• Default data for automatically creating new customers
  • Risk category
  • Credit limit.
• Organizational Data.

After updating all the required details for the credit control area, click on the save button to save the details.

Credit control areas – Table