What is credit group in SAP SD - Sales and Distribution?

SAP Term: credit group

• Component: SD

• Component Name: Sales and Distribution

• Description: A control element in Customizing for Credit Management. All business transactions that are assigned to the same credit group are treated equally in the credit check. &EXAMPLE& Orders and quotations have credit group 1 Deliveries have credit group 2

Smart SAP Assistant

• Key Concepts: 
  A credit group is a component of the Sales and Distribution (SD) module in SAP. It is used to define the credit limit for a customer, which is the maximum amount of credit that can be extended to them. The credit limit is determined by the credit group assigned to the customer. 
  
  How to use it: 
  In order to assign a credit group to a customer, you must first create the credit group in the SAP system. This can be done by navigating to the SD module and selecting “Credit Groups” from the menu. Once you have created the credit group, you can assign it to a customer by navigating to the customer master record and selecting “Credit Group” from the menu. 
  
  Tips & Tricks: 
  It is important to remember that the credit limit for a customer is determined by their assigned credit group. Therefore, it is important to ensure that you assign an appropriate credit group to each customer in order to avoid any potential issues with extending too much credit. 
  
  Related Information: 
  For more information on how to use and manage credit groups in SAP, please refer to SAP’s official documentation on Credit Management.