Skip to Content

In this blog we will make a brief summary of the most important points about SAP Credit Management 

First, the difference between “FI-AR Credit Management” and SAP Credit Management is detailed

 

SAP Credit Management takes information in real time from the SD and FI modules. Allowing a credit analysis on the flight and gives us the certainty of an accurate analysis of the clients

 

Frequently asked questions we ask about Credit Management:

What allows to create SAP Credit Management ?

Credit Limit Management

        Implement a company wide credit policy

         Manage a customer credit profile

        Central credit management in a distributed system landscape

Credit Case

        Credit case for structured processing of credit limit applications

        Track status and result of credit limit applications

Credit Rules Engine

        Categorize customers by scoring rules

        Automatically calculate and assign a customer-specific credit limit

        Credit check rules

        Model and implement own customer credit score cards

Credit Information

        Interface to external credit agencies

        Input parameters for scoring rules

Credit Manager Analytics

        Role-based access to credit management information and analysis

 

What allows Credit Rules Engine?

      • Create a scoring formula and credit limit formula by using the formula editor. Parameters (for example, business partner data) and functions are used as input parameters.
      • One scoring formula and several credit limit formulas (for each credit segment) are assigned to the rule for scoring and credit limit calculation, which is assigned to each customer in the credit profile. The risk class is determined directly from the score.
      • In customizing, specific score ranges which do not overlap are assigned to each risk class. For the check rule, the system determines the steps which are taken to check the creditworthiness of a customer when a sales order is created. This may include the static check of the credit limit or acheck of the highest dunning level.
      • Customer-specific process chains in SAP Credit Management can be defined through events which trigger follow-up actions

 

 

Calculate internal credit scoring

In the scoring you can combine customer master data and transactional data (e.g. payment behavior) to score a customer.The scoring is based on formula that can be freely defined by the user.
In the scoring method you can include ratings from external sources. Multiple external ratings can be mapped to an internal rating to make them compareable

Use a black-rated customer list to prevent business with high risk customers

Example credit management process:

–  A sales order that is entered in the sales system can be checked automatically in the credit management system.

–  If the check fails, the order is blocked and the credit manager can review the customer credit profile.

–  He can request credit report from an external source. (e.g. D&B)

–  Based on new external information the scoring and a new proposal for credit-limit can be automatically calculated by the system

 

Based on the new credit limit the credit manager can release the sales order now

 

Credit Management with Central Payments

You can also use SAP Credit Management with Central Payments in Central Finance

For this scenario it is necessary to implement SLT and through IDoc / ALE, etc. You can send the SD module information from the source system to the target system.

 

To report this post you need to login first.

2 Comments

You must be Logged on to comment or reply to a post.

  1. Jyoti Singh

    Hello Pablo,

    Nice overview. Could you please share more detail on “it is necessary to implement SLT and through IDoc / ALE, etc.” Do you mean the document replication or credit check service message flow from source to target.

    Also, the scenario should work if the document status in both source and target system reflecting the right status.

    Thank you

    (0) 
    1. Pablo Mejias Post author

      Hi Jyoti,
      Thank you!. It is not necessary to implement SLT for the Credit Management module, the communication is by IDOC.
      The credit check begins when the sales order is generated in the source system.
      Yes, it is correct the system works correctly when the data have the same status in both systems.

      (0) 

Leave a Reply