Credit Department and Organizational Structure

As to where credit fits in the business organization - finance, sales, etc., there is no one "Best practice" or "only place" where it belongs. Many people will have their biases. Traditionally, credit has been part of finance, but is it treasury (since they take care of cash, and collection of A/R is the largest source of cash for companies) or the controller's organization (since they are charged with monitoring or controlling accounting)? Often it becomes a matter of how the company itself is structured. As more decentralization has taken place over the years, a credit person may find his/herself reporting to a product manger, division or regional VP, or president of a subsidiary, not to finance. Sometimes a "dotted line" relationship, to the regional VP and the treasurer may be in place. Good discussion on the topic is always appropriate but the conclusion normally resides in how a company is currently structured and the people available to perform, manager and lead the task.