Credit management (necessary settings in the module SD) (S/4 1709)
In the SD module performs a credit check of the sales order / delivery and subsequent update of the credit exposure.
Picture 1 schematically shows the process of credit check in the sales order.
Picture 1. Credit check in the sales order
Action 1 «Filling data relevant for credit management in sales order.
Calculation of the credit value
To update the credit exposure and perform credit checks, the system calculates the credit value of the sales order.
For the calculation of the credit exposure is used fields Item credit price (VWAP-CMPRE) and Confirmed quantity (KBMENG).
In my opinion, the most complete description is presented in the article on the link:
Field Item credit price (VBAP-CMPRE) fill rules are defined in the SPRO:
Financial Supply Chain Management → Credit management → Integration with Accounts Receivable Accounting and Sales and Distribution → Integration with Sales and Distribution → Enter Settings
You need to select the used pricing procedure (You can check which pricing procedure is used in a sales order at the sales order position: Item -> Condition -> Analysis)
The position marked “A” in the Subtotal column is used to determine the credit price (usually, the net value plus taxes).
Credit Control Area (VBAK-KKBER)
Credit Control Area The credit control area is stored by a sales order in the VBAK-KKBER field. The definition of the sphere of credit control is performed in the functional module SD_DETERMINE_KKBER.
The following algorithm (in descending order) is used to determine the credit control area:
- User exit: EXIT_SAPFV45K_001
- Credit control area of the payer. Transaction BP role FLCU01 «Customer (defined)».
- Credit control area of the Sales Area
SPRO → Financial Supply Chain Management → Credit management → Integration with Accounts Receivable Accounting and Sales and Distribution → Integration with Sales and Distribution → Assign sales area to credit control area
- Credit control area of the Company Code
SPRO → Enterprise structure→ Assignment → Financial Accounting → Assign company code to credit control area
In subsequent documents (delivery: likp-kkber, invoice: vbrk-kkber), the credit control area is copied from the sales order.
Item with active credit function / relevant for credit (VBAP-CMPNT)
The setup is used to define the Item Category that you want to participate in credit control. Credit exposure calculation and credit check is not performed for Item Category not marked as relevant for credit management.
SPRO → Financial Supply Chain Management → Credit management → Integration with Accounts Receivable Accounting and Sales and Distribution → Integration with Sales and Distribution → Determine Active Receivables Per Item Category
Determining the relevance of a sales orders and delivery for credit control
- Assign Sales Documents and Delivery Documents
SPRO → Financial Supply Chain Management → Credit management → Integration with Accounts Receivable Accounting and Sales and Distribution → Integration with Sales and Distribution → Assign Sales Documents and Delivery DocumentsThe setting is used to mark the types of orders for which credit control is required (fill in the “Check credit” column with the value D « Credit management: Automatic credit control»). In addition, by filling in the “Credit group” field, the types of orders for which credit control should be similar are grouped.
Similarly, delivery and/or goods issue are grouped.
- Credit Groups
The credit group groups together different business transactions which should be dealt with in the same manner with regard to the credit check.You enter the credit groups when you configure the sales document types for credit management and define the automatic credit check.
SPRO → Financial Supply Chain Management → Credit management → Integration with Accounts Receivable Accounting and Sales and Distribution → Integration with Sales and Distribution → Define Credit Groups
- Define Automatic Credit Control
The setup allows you to set credit control parameters for a combination of dimensions:Credit Control area, Credit Group, Risk Category.
SPRO → Financial Supply Chain Management → Credit management → Integration with Accounts Receivable Accounting and Sales and Distribution → Integration with Sales and Distribution → Define Automatic Credit Control
- No credit check. I like explanation of this field from SPRO:
- Item check. If the check box is not selected, the credit check is performed when the document is saved. Otherwise, the credit check is performed during the document entry process.
- Deviation in %. I like explanation of this field from SPRO:
- Number of days. I like explanation of this field from SPRO:
- SAP Credit Mngt. If the checkbox is set, the system performs a credit check.
Own credit checks can be set in BAdI BADI_SD_CM:Order: FSCM_CREDIT_CHECK_ORDER
- System reaction to the error credit check (nothing, error, earning).
- Status/Block. If the indicator is set, the system sets a credit block if the credit check fails.
Risk Categories (VBAK-CTLPC)
The Risk Categories field is a projection of the Risk classes (FSCM) in the SD module. The values of this dimension must repeat the values of the Risk class (Risk Categories is defined based on risk classes by code compliance).
The analytics is filled in at the time of creating the sales order using the method if_ukm_credit_query_r3~check_credit of the class cl_ukm_xi_facade_r3_50 (the call is located in the standard implementation UKM_SD_FSCM_INTEGR1~ FSCM_GET_MASTER_DATA).
SPRO → Financial Supply Chain Management → Credit management → Integration with Accounts Receivable Accounting and Sales and Distribution → Integration with Sales and Distribution → Define Risk Categories
Risk class (FSCM).
The credit update group controls when the values of open sales orders, deliveries, and billing documents are updated.
I found a good description of the update groups at this link:
I want to add that the logic of defining update groups is in the form kredit_aktiv of the Include LMCSBF10.
Action 2 «Credit check».
There are methods in BADI_SD_CM: FSCM_CREDIT_CHECK_ORDER and FSCM_CREDIT_CHECK_DELAY that implement sending credit request to the module FSCM-Credit Management and receive credit check result.
SAP recommends using the standard implementation UKM_SD_FSCM_INTEGR1 for BADI BADI_SD_CM (https://help.sap.com/doc/c575d7531a4d424de10000000a174cb4/3.6/en-US/frameset.htm).
The implementation calls method cl_ukm_xi_facade_r3_50=>if_ukm_credit_query_r3~check_credit which send request (with help enterprise service CreditWorthinessQuery_In) in the module FSCM-Credit Management and receive result of check.
Action 3 «Set credit status».
Method cl_ukm_xi_facade_r3_50=>if_ukm_credit_query_r3~check_credit return parameter LV_CHECK_CONF that have value «X» (if credit check successful) or “” (if credit check do not successful)
If the credit check is not successful, the VBAK- CMGST field is filled in with the value B “Credit check was executed, document not OK”.
Action 4 «Update credit exposure».
If the credit check is successful, the system updates the credit exposure.
At the implementation UKM_SD_FSCM_INTEGR1 there are methods FSCM_COMMITMENT_UPDATE_ORDER, FSCM_COMMITMENT_UPDATE_DELVRY, FSCM_COMMITMENT_UPDATE_INVOICE, which prepares credit data and send request to the FSCM-Credit Management (for update data in the table UKM_ITEM). The message is generated and sent using the method cl_ukm_xi_facade_r3_50=>if_ukm_commitment_push_r3~push_commitment.
The logic for updating the credit exposure based on the SD module documents (order, delivery, invoice) such that subsequent documents reduces the amount of previous documents with the following logic of filling the Credit Exposure Categories (UKM_ITEM-COMM_TYP)
In the note 1124271 – “Operational concept SAP Credit Management” described possible errors in updating SD credit exposure in FSCM-Credit Management.
Thank you sharing!
Thanks for Sharing. Would be fantastic if you could take out time to highlight the different effect that FSCM- SD credit management will have on managing credits compared to regular FSCM Credit Management. Cheers
Hi, i have read your blog and it really clears the settings from SD side. I have one doubt - the routine setting which needs to be done in Pricing procedure which checks the credit limit on basic price or basic price+ tax is placed in subtotal with option "A" or it is something else. PS - I have never worked on Credit Management, just wanted to understand the process end to end. Thanks for help in advance.
thanks for the detailed information from SD side. I have a question regarding the critical field configuration that we do in ECC but that is not there in S/4 Hana. In ECC OVA8 if we check the critical fields check box for a risk category and create a sales order and change the payment terms in sales order after creating it or when we creating the sales order with other than some payment term from master data of customer, the sales order go into credit block because of this critical fields check box, somehow i don't see that setting in S/4 Hana, Could you please let me know if you know if there are any other settings to achieve this functionality in S/4 Hana.
Thanks for such an informative blog. We have done migration from ECC to S4H system and for some customer we have observed that after migration, system has created negative credit exposure with category 400(Open delivery).
We checked for some deliveries and found that these are invoiced. Also if I compare FD33 & UKM_BP in S4H system, Credit exposure is significantly different. Difference is because of category 400 related exposure created on migration.
Do you know why system picks such deliveries for credit exposure change & how to resolve this ? We executed UKM_RVKRED77 and still issue remains.