Credit management (Documented Credit Decision) (S/4 1709)

The credit check concept for sales orders in FSCM-Credit Management implies that the credit controller does not review each sales order. When a situation occurs that the sales orders exceed the credit limit, a Documented Credit Decision object is automatically created. Documented Credit Decision undergoes the approval procedure. If approved, the associated sales order is automatically released.

Picture 1 schematically shows the process of create and approve Documented Credit Decision.

Picture 1. Create and approve Documented Credit Decision

Action 1 «Automatic creation of a Documented Credit Decision».

Configuration in the system in which SD is running:

Initiating the creation of a Documented Credit Decision occurs if a sales order has been blocked (VBAK-CMGST = ‘B’) because of a failed credit check. The method call CL_UKM_CLIENT_DCD=>MAINTAIN_DCD initiating the creation of a Documented Credit Decision are carried out in BADI_SD_CM=>FSCM_COMMITMENT_UPDATE_ORDER (in the case of using the implementation UKM_SD_FSCM_INTEGR1 “Connection of SD Documents to SAP Credit Management”). In the method CL_UKM_CLIENT_DCD=>MAINTAIN_DCD prepares data SD module and send it to the module FSCM-Credit management with service DocumentedCreditDecisionERPBusinessTransactionDocumentNotification_Out (exist BADI UKMRSE_3_DCD_MNTNO «BAdI: Sending a Documented Credit Decision» which extends this interface).

• In BADI UKM_R3_ACTIVATE in the DCD_ACTIVE method set the value of the parameter E_DCD_ACTIVE = ‘X’.

Configuration in the system in which SAP Credit Management is running

SAP Credit Management uses the Case Management component as the technical basis for processing the documented credit decision. The Documented Credit Decision data is stored in the UKM_DCD_ATTR table.

Necessary setting:

• Select the Case Type to be used to automatically create a Documented Credit Decision.

Financial Supply Chain Management → Credit management → Credit Risk Monitoring →                    Documented Credit Decision → Define Case Type for Documented Credit Decision

• General setting of Case Type.

Financial Supply Chain Management → Credit management → Credit Risk Monitoring →                    Documented Credit Decision → Settings in the Case Management Component.

The menu item contains links to the settings of the main parameters of Case Type (such as:              range of numbers, attributes, statuses, etc).

The algorithm of automatic filling the attributes of the Documented Credit Decision:

Picture 2. An example of a Documented Credit Decision

• Case Id. Internal number of Documented Credit Decision
• Card type (constant: DCD).
• It is not filled in automatically.
• It is not filled in automatically.
• Filled with the value “Open/New”.
• Planned Close Date. The planned processing date for Documented Credit Decision. By default, this is filled with the creation date.
• Business Partner. The attribute is copied from the sales order.
• Credit Segment. The credit segment is defined based on the Credit control Area attribute of the sales order (VBAK-KKBER).
  
  
• Sales Document. The attribute is copied from the sales order.
• Document Status. The attribute is copied from the sales order.
• Case Type. The name of the Case Type, which is defined to automatically create a Documented Credit Decision
• External reference. The attribute is copied from the sales order. It is not filled in automatically.
• Escalation Reason. It is not filled in automatically.
• Credit Analyst. To automatically fill in the Credit Analyst attribute, you must add a relationship «Managed in Credit Management By» between the business partner of the buyer and the business partner of the credit analyst. Herewith credit analysts need to be created as Business Partners (BPs) as a Person with the Employee role. In the Employee role, you will find a section to maintain the SAP user ID. More details exist at the note 2656921 – “FSCM: How to maintain Credit Analyst?”.
• Person Responsible.
• The system allows for different segments and risk classes to specify the number of approvers (up to four) for the Documented Credit Decision depending on the amount of the Sales Order / Delivery.Financial Supply Chain Management → Credit management → Credit Risk Monitoring → Documented Credit Decision → Define Approval Process

  

  

• Risk Class. Copied from the business partner master record (the “Risk Class” attribute of the UKM000 “SAP Credit Management” role).
• Open Credit Amount. Open amount of the document in the segment currency.
• Checked Credit Value. The logic of filling the field «Checked Credit Value» is described in the note 2473178 – SAP Credit Management: Checked Credit Value in DCD is not the total value of the sales order:
  
• The currency segment.
• Bookmark «Notes». A message that was generated when a credit check on a Sales order or Delivery failed.
• Bookmark «Linked Objects». Link to the document that initiated the creation of the Documented Credit Decision (Sales order or Delivery) and on the PDF Snapshot.
• If SD and FSCM-Credit Management are run on different systems, then in the system in which FSCM-Credit Management is started, you need to configure business objects.Create and assign PDF Form to of Case Type is carried out in the setting:Financial Supply Chain Management → Credit management → Credit Risk Monitoring → Documented Credit Decision → Assign Logical System to the Element Types for Business Objects

  Financial Supply Chain Management → Credit management → Credit Risk Monitoring → Documented Credit Decision → Define Derivation of Element Types
  
  PDF Snapshot.
  A snapshot is a form containing the data on which a negative credit decision was based.

  Create and assign PDF Form to of Case Type is carried out in the setting:
  Financial Supply Chain Management → Credit management → Credit Risk Monitoring → Documented Credit Decision → PDF Form for Snapshot
  

  
  Also with help BADI UKM_DCD_SNAPSHOT_DATA possible change or enhance the contents for the snapshot of a documented credit decision. It is called before the system creates the snapshot.

   

• Bookmark «Log». History of attribute changes.
• There are the following BADIs with which you can change the algorithm for generating DCD:
• UKM_SE_SPOT_DCD «Acceptance of a Documented Credit Decision». With this BAdI you can change the contents of a documented credit decision. It is called in the inbound processing of the following enterprise service: DocumentedCreditDecisionERPBusinessTransactionDocumentNotification_In
• UKM_DCD_MAINTAIN « Attributes of the Documented Credit Decision». You can use this BAdI to adapt the attributes of the documented credit decision to meet your requirements. It is called when you create or change a documented credit decision.

Action 2 « Processing of Documented Credit Decision by Credit Analyst».

After the Documented Credit Decision is created, the credit controller must process it.

The transition to the Documented Credit Decision is described by link: https://help.sap.com/erp2005_ehp_08/helpdata/en/13/d704dbcab04881ba70794d5b52ef93/content.htm?loaded_from_frameset=true

In the process of processing a Documented Credit Decision, the credit analyst performs the following actions:

• Check availability and approve Credit Limit Request. The transition is carried out by the button Credit Limit Request.
  
• Check, Release, or Reject Sales Document.
  
  A credit analyst must perform one of the following actions:
  * The function allows you to re-check the credit limit for a sales document.Example of use function from help.sap.com:

*  If this is allowed by the reconciliation scheme, the credit analyst can release the sales order.               In this case, the sales order will be released, and the Documented Credit Decision will set                   the status specified in the setting:

•    Financial Supply Chain Management → Credit management → Credit Risk Monitoring →         Documented Credit Decision → Define Status for Automatic Closing
  
  

*  In case of rejection of the sales order, the credit analyst must fill out the ‘Reason for                             Rejection’. In this case, the sales order will be remains blocked, and the Documented                         Credit Decision will set the status specified in the setting:

•      Financial Supply Chain Management → Credit management → Credit Risk Monitoring →         Documented Credit Decision → Define Status for Automatic Closing
• The description of operations check, release and reject Sales Document is described by reference:https://help.sap.com/erp2005_ehp_08/helpdata/en/95/22fb56efff4910a083706afe62c5e1/content.htm?loaded_from_frameset=true
• Mass processing Documented Credit Decision.
• In a SCASE transaction, you can massively change the values of the Documented Credit Decision attributes.
  The list of attributes of the Documented Credit Decision available for a mass change is specified in the Customizing:Financial Supply Chain Management → Credit management → Credit Risk Monitoring → Documented Credit Decision → Create Profile for Case Search
  
  
  
  The description of mass processing is described by reference:

  https://help.sap.com/erp2005_ehp_08/helpdata/en/3e/e4fa79c7b94901b626bf127c6a732f/content.htm?loaded_from_frameset=true

• Sending a Snapshot.
• A credit analyst can send a PDF Snapshot to a customer who explains why the sales document was blocked.The description of PDF Snapshot is described by reference:https://help.sap.com/erp2005_ehp_08/helpdata/en/d5/a8d0da83354e6aaa2a532e8cb52048/content.htm?loaded_from_frameset=true

   

• Complying with the Approval Process:
• The system allows you to configure the number of conciliators Documented Credit Decision depending on the amount of sales document.The description of  Complying with the Approval Process is described by reference:https://help.sap.com/erp2005_ehp_08/helpdata/en/95/15a77586b745dca112c213c63a5409/content.htm?loaded_from_frameset=true