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Author's profile photo Kundan Vishwakarma

S/4 HANA Credit Management Configuration Process

Hello Friends,

I would like to share the configuration steps in Credit Management Process in SAP S/4 HANA and its functionality.

I hope you will like this and this document will help all those user’s who really want to learn SAP S/4 HANA delta change in the system.

This brings an honor to share this documentation with all of you about how, Credit Management with S/4 HANA.

The Standard BP role for Credit Management is UKM000 – SAP CREDIT MANAGEMENT.

Configuration Steps for Credit Management in S/4 HANA.

Step 1: Define Credit Segment


New Entries,

Save it.

Only if Needed:

Note of External Credit Information, you need to create Rating Procedure,

Make sure that the external information providers are connected to the following interface via the XI infrastructure:

Credit Information Query out (Query Credit Information from External Data Providers) in the namespace


New Entries,

This rating procedure, you need to assign with credit limit calculation,

Select the created rule and click on score, credit limit and rating procedure.

ID Type = Credisafe.

Step 2: Define Customer Credit Group

Note: In SAP S/4 HANA, the Credit Management Calculation has enhanced with formula editor function button. Following are the calculation formula criteria:

  1. Currency
  2. Credit Segment
  3. Score

Step 3: Assign Credit Control Area and Credit Segment. Transaction Code: UKM_SEGMENT


New Entries.

Once assignment done with credit control area and credit segment, then save it.

Step 3: Assign Sales Area to Credit Control Area.

This is the normal steps which we are doing in SAP ECC system.

Step 4: Enter Settings

Condition Partner: Update the subtotal with value “A” for Credit Release check for NET VALUE condition type.

Step 5: Determine Active Receivable Per Item Category. Transaction Code: OVA7

Activate as per your required Item Category.

Step 6: Define Credit Group. Transaction Code: OVA6

You can create your own credit group as per requirement.

Step 7: Assign Sales Document and Delivery Document.

If you want to activate the Credit Management at Delivery Level, you can update the same as well.

Step 8: Define Automatic Credit Control. Transaction Code: OVA8

Step 9: Define Rick Category and Assignment.

Note: As we need to activate the BADI for the following Credit Management in S/4 HANA.

Select the BADI and click on ACTIVATE button.

This complete the configuration procedure for the SAP S/4 HANA for FSCM Credit Management.

Customer Master Setup:

Enter the Rules, Risk Class, Check Rule and Customer Group under Credit Profile tab, which you

will get under UKM000 BP role.

After that, go to Credit Data Segment and fill up the value as shown in below snap shot,

Update the value for Limit Defined, i.e. Credit Limit.

Save it.

This complete the Master Data Setup for FSCM Credit Management in SAP S/4 HANA.

O2C Process and FSCM Effects:

After Credit Limit Exceed,

As the Risk Category kept as Error, so it will not allowed saving the sales order.

This completes the FSCM Credit Management in SAP S/4 HANA.

I hope this blog you will like and will help you in some case.


Kundan Vishwakarma


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      Author's profile photo Bose G
      Bose G

      Thanks for the detailed steps. Much appreciated your effort


      Author's profile photo DSB INFORMATIK

      Hi Thanks for sharing this information - just wondering if FSCM (credit management) is included in S4HANA license or outside ? Any idea


      Author's profile photo Kundan Vishwakarma
      Kundan Vishwakarma
      Blog Post Author

      Hi Friend,


      As far as I know, it is included in S4 HANA.





      Author's profile photo Ardian Yuwandono
      Ardian Yuwandono

      in S/4HANA If you use the same functionality as in ECC for credit management (Basic credit management) it does not require additional license. But if you also use additional function such as scoring with formula it require additional license.

      Author's profile photo isap love
      isap love


      This is what i saw in a blog, hope it helps.


      Author's profile photo Former Member
      Former Member

      Unfortunately FSCM requires separate license. I am looking into this too.

      Author's profile photo Kundan Vishwakarma
      Kundan Vishwakarma
      Blog Post Author

      Hi Yan,


      Thanks for sharing the information on same !!!





      Author's profile photo venu gopal
      venu gopal

      Hello yan,

      Very good document

      Author's profile photo Amol Rai
      Amol Rai

      Thanks for sharing the knowledge,

      Could you please specify the customizing for credit management for outstanding of the customer.

      Author's profile photo Vinod Kumar Reddy Kurapati
      Vinod Kumar Reddy Kurapati

      Hi Kundan,

      Nice document. Thanks for sharing the knowledge!.




      Author's profile photo Madhur Gundecha
      Madhur Gundecha

      Hi Kundan, thanks.

      Where can I find difference between pls sap and HANA. Specifically, in earlier credit management there were fields like max credit limit and individual credit limit. I am not able to find comparable in BP in hana

      Author's profile photo Mohamed Zaki
      Mohamed Zaki

      HI All,


      but how can display report for customer credit limit and how get difference amount between customer balance and credit limit as all old reports obsolete in S/4 same F.31

      Author's profile photo Mustafa Ziraba
      Mustafa Ziraba


      Can one view and change settings in OVA8 for the Main Credit Segment?

      Author's profile photo Monika Patel
      Monika Patel

      Nice blog. thanks for sharing

      Author's profile photo sundar koduvayur
      sundar koduvayur

      Nice Blog. Thanks

      Author's profile photo Bijaya Kumar Pandia
      Bijaya Kumar Pandia

      Thanks Kundan for your valuable inputs on FSCM credit Management. I have some doubts, how to map the functionality of user exits in OVA8 in ECC credit management to FSCM credit management.



      Author's profile photo mayuri sawant
      mayuri sawant

      Hi Kundan,

      Very good document.

      In ECC we used to set horizon for dynamic in OVA8. but here I could not see any option to set horizon.

      Could you please shed some light on this?




      Author's profile photo Cristina Hipocreme
      Cristina Hipocreme

      In case same partner is both customer and vendor, is there a way to use credit management to block payment in advance to BP vendor, considering available credit limit ?

      Thanks for any comment.

      Author's profile photo Zoraida Barrera
      Zoraida Barrera

      Thank you for your help!

      Author's profile photo Vamshi Vemula
      Vamshi Vemula

      Hi Kundan,

      We are at ECC 6 EHP 8 with Hana suite. and we also have standard Credit management. So what makes FSCM for S4 makes difference against existing credit management? and why it is needed?



      Vamshi K

      Author's profile photo Balaji Natarajan
      Balaji Natarajan

      Nice document. Easy to follow step-by-step procedure. It works. :).

      Author's profile photo Sunil Karade
      Sunil Karade

      Hello Kundan,


      Thank you for your help!

      I have a question for you.

      As a ABAPer i got below requirement.

      could you please tell us that can we set (UKMBP_CMS_SGM-CREDIT_LIMIT)are as mandatory field for below condition?


      Change in BP role = UKM000

      Credit Segment - = 0000

      Credit limit should not be blank.

      This is urgent and will wait for your positive reply.



      Author's profile photo Fujitsu Consultant
      Fujitsu Consultant

      There is an option to control through Field Group. You can make this field Credit Limit in Credit Segment as mandatory. You can search for this in SPRO - Configure Field Attributes per BP Role.



      Sanjay Barnwal

      Author's profile photo Sunil Karade
      Sunil Karade

      Hello Sanjay,


      This is very useful. We'll communicate with functional on this.

      Thank you for your help!

      Author's profile photo Changlin Ke
      Changlin Ke

      It should be excellent if it has menu road under every step.

      Author's profile photo Tirupati Rao Kenguva
      Tirupati Rao Kenguva

      Hi Kundan,

      I have tried implementing all the steps mentioned in your posts, but still credit check in not happening while creating sales order. I have tried putting debugger in the BADI : BADI_SD_CM for the method : FSCM_CREDIT_CHECK_ORDER.

      But while creating sales order it is not at all going to the debug point and the sales order is getting created successfully without any error popup for credit check and the status of the sales order is having Credit check status as 'Not performed'.

      Could you please let me know if any config is missing here.




      Author's profile photo Qaiser Rafique
      Qaiser Rafique

      did you activate /sap/bc/srt/lsc/ in SICF. hope this well serve the purpose.

      Author's profile photo Gustavo Dominguez
      Gustavo Dominguez

      Hi Kundan

      For S4Hana the landscape is still compose communication for SD, AR and FSCM via PI?

      Thanks and regards