(updated as of release 1809)
In this blog some commonly asked questions will be addressed:
This graphic presents a good overview of the features of Credit Management in S/4HANA from a functional standpoint. The features of Credit Limit Management, Credit Rules Engine and Credit Information are explored in this blog. The features of Documented Credit Decisions, the follow on process engine and Credit Limit requests via Credit Cases will be addressed in my next blog. A blog written by a RIG colleague shows an overview of functionality in more detail and can be linked to here.
The Business Partner displays where the Credit Management data is stored. In the BP Role of “SAP Credit Management” the Scoring Rules, Risk Class, Check Rule and the integration to External Credit Agencies are all listed. This can be accessed via the GUI t/code “BP” (refer to the Credit Profile and Creditworthiness tabs) or in Fiori by the “Manage Business Partner” app. Here is an example of the BP t/code:
The base license includes the manual features for setting credit limits, setting risk classes and setting an internal score for a Business Partner. If an automated calculation is needed, then an additional license is required.
For the link to an external credit agency, an xml formatted file can be added as project work or the data can be input manually on the Business Partner as a part of the base license. An additional license is required to use the cloud-based link to credit agencies. The cloud-based service provides about 20-30 credit agencies such as Dun & Bradstreet right out of the box.
Setting Credit Limits
Credit Limits are referenced in the Sales Order Process. A Sales Order will be put on hold if the Credit Limit is exceeded. The first step in setting a Credit Limit is to define a formula the IMG under FSCM > Credit Management > Master Data > Define Formula. Formulas are set up using the attributes of the Business Partner and standard functions. The Formula set up looks like a “calculator” similar to the way FI validations and substitutions are configured. A BADI can also be used to augment the content delivered by SAP. Credit Management data such as what is stored on the Creditworthiness tab (for example, Credit Standing, Status, Rating, etc.) can be used in the Formula. The Formula is then linked to the Credit Limit in the IMG under FSCM > Credit Management > Master Data > Create Rule for Scoring and Credit Limit Calculation.
Define Formula example:
Create Rule for Scoring and Credit Limit Calculation example:
Setting Risk Classes
Risk Classes can be used to set a credit limit or to make a decision to release blocked sales orders in the Credit Case. The Risk Class can be manually input on a Business Partner or it can be calculated based on the Credit Rating of a Business Partner. The Risk Classes are defined in the IMG under FSCM > Credit Management > Master Data > Create Risk Classes.
Setting an Internal Score
Scores can be used to set a credit limit or to make a decision to release blocked sales orders in the Credit Case. Usually an internal score is used mainly to derive a Risk Class. Similar to Setting the Credit Limit, the first step in setting an internal score is to define a formula the IMG under FSCM > Credit Management > Master Data > Define Formula. The Formula is linked to the Internal Score in the IMG under FSCM > Credit Management > Master Data > Create Rule for Scoring and Credit Limit Calculation. Any of the attributes in the Creditworthiness tab can be used to Score a Business Partner.
Link to an external credit agency
In the Business Partner on the Credit Profile tab, an xml file containing credit data can be linked. The URL and the RFC to the cloud-based tool are created in the config step: In the IMG under FSCM > Credit Management > Master Data > Integration of External Credit Agencies or FSCM > Credit Management > Current Settings > Integration of External Credit Agencies
Following the “Principle of One“ where there was overlapping functionality across applications, the S/4HANA solution is simplified to one. At its core, SAP Credit Management in S/4HANA is for all intents and purposes FSCM which was rebranded in S/4HANA. The former AR and SD features were then added. SAP Credit Management in S/4HANA resides in the Finance Module. For the minimum configuration of SAP Credit Management in S/4HANA, perform the “required” actions in the Task List PDF attached to the SAP Note 2270544.
For a conversion to S/4HANA, complete the prerequisites for the migration to SAP Credit Management:
This blog addressed some common questions surrounding Credit Management Functionality in S/4HANA. Future blogs will address Fiori apps and reports and Credit Cases managed via Documented Credit Decisions for SAP Credit Management in S/4HANA. Let me know what you think of this blog or if you have ideas for other blogs that are needed.
Brought to you by the SAP S/4HANA RIG
In this blog some commonly asked questions will be addressed:
- Where is SAP Credit Management information displayed in S/4HANA?
- What is included in the base license of SAP Credit Management in S/4HANA?
- How are some of the new features of SAP Credit Management Configured?
- What is the minimum configuration required for SAP Credit Management in S/4HANA?
New Features of SAP Credit Management in S/4HANA
This graphic presents a good overview of the features of Credit Management in S/4HANA from a functional standpoint. The features of Credit Limit Management, Credit Rules Engine and Credit Information are explored in this blog. The features of Documented Credit Decisions, the follow on process engine and Credit Limit requests via Credit Cases will be addressed in my next blog. A blog written by a RIG colleague shows an overview of functionality in more detail and can be linked to here.
Where is Credit Management Information displayed in S/4HANA?
The Business Partner displays where the Credit Management data is stored. In the BP Role of “SAP Credit Management” the Scoring Rules, Risk Class, Check Rule and the integration to External Credit Agencies are all listed. This can be accessed via the GUI t/code “BP” (refer to the Credit Profile and Creditworthiness tabs) or in Fiori by the “Manage Business Partner” app. Here is an example of the BP t/code:
What is Included in the Base License of SAP Credit Management in S/4HANA?
The base license includes the manual features for setting credit limits, setting risk classes and setting an internal score for a Business Partner. If an automated calculation is needed, then an additional license is required.
For the link to an external credit agency, an xml formatted file can be added as project work or the data can be input manually on the Business Partner as a part of the base license. An additional license is required to use the cloud-based link to credit agencies. The cloud-based service provides about 20-30 credit agencies such as Dun & Bradstreet right out of the box.
How are some of the new features of SAP Credit Management Configured?
Setting Credit Limits
Credit Limits are referenced in the Sales Order Process. A Sales Order will be put on hold if the Credit Limit is exceeded. The first step in setting a Credit Limit is to define a formula the IMG under FSCM > Credit Management > Master Data > Define Formula. Formulas are set up using the attributes of the Business Partner and standard functions. The Formula set up looks like a “calculator” similar to the way FI validations and substitutions are configured. A BADI can also be used to augment the content delivered by SAP. Credit Management data such as what is stored on the Creditworthiness tab (for example, Credit Standing, Status, Rating, etc.) can be used in the Formula. The Formula is then linked to the Credit Limit in the IMG under FSCM > Credit Management > Master Data > Create Rule for Scoring and Credit Limit Calculation.
Define Formula example:
Create Rule for Scoring and Credit Limit Calculation example:
Setting Risk Classes
Risk Classes can be used to set a credit limit or to make a decision to release blocked sales orders in the Credit Case. The Risk Class can be manually input on a Business Partner or it can be calculated based on the Credit Rating of a Business Partner. The Risk Classes are defined in the IMG under FSCM > Credit Management > Master Data > Create Risk Classes.
Setting an Internal Score
Scores can be used to set a credit limit or to make a decision to release blocked sales orders in the Credit Case. Usually an internal score is used mainly to derive a Risk Class. Similar to Setting the Credit Limit, the first step in setting an internal score is to define a formula the IMG under FSCM > Credit Management > Master Data > Define Formula. The Formula is linked to the Internal Score in the IMG under FSCM > Credit Management > Master Data > Create Rule for Scoring and Credit Limit Calculation. Any of the attributes in the Creditworthiness tab can be used to Score a Business Partner.
Link to an external credit agency
In the Business Partner on the Credit Profile tab, an xml file containing credit data can be linked. The URL and the RFC to the cloud-based tool are created in the config step: In the IMG under FSCM > Credit Management > Master Data > Integration of External Credit Agencies or FSCM > Credit Management > Current Settings > Integration of External Credit Agencies
What is the Minimum Configuration Required for SAP Credit Management in S/4HANA?
Following the “Principle of One“ where there was overlapping functionality across applications, the S/4HANA solution is simplified to one. At its core, SAP Credit Management in S/4HANA is for all intents and purposes FSCM which was rebranded in S/4HANA. The former AR and SD features were then added. SAP Credit Management in S/4HANA resides in the Finance Module. For the minimum configuration of SAP Credit Management in S/4HANA, perform the “required” actions in the Task List PDF attached to the SAP Note 2270544.
For a conversion to S/4HANA, complete the prerequisites for the migration to SAP Credit Management:
- Complete all documents related to payment guarantee Letter of Credit.
- Complete the migration for Accounting
- Eliminate the usage of SAP objects in your own code. For details on how to adapt user-defined customer code that relies on the changed objects, see the SAP Notes 2227014 (Financials) and 2217124 (SD)
Summary
This blog addressed some common questions surrounding Credit Management Functionality in S/4HANA. Future blogs will address Fiori apps and reports and Credit Cases managed via Documented Credit Decisions for SAP Credit Management in S/4HANA. Let me know what you think of this blog or if you have ideas for other blogs that are needed.
Brought to you by the SAP S/4HANA RIG
- SAP Managed Tags:
6 Comments
