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Author's profile photo Arputharaj Prasad T

S/4 HANA SAP credit management (FIN-FSCM-CR)-Integration with SD

This article covers SAP credit management (FIN-FSCM-CR available in FSCM) functionality from SD perspective mainly keeping in mind the difference between the current credit management (FI-AR-CR) that we are using before S4 HANA Vs the SAP credit management (FIN-FSCM-CR) functionality available in S4 HANA. It only talks about the credit management functionality at high level, may be helps as an outset for someone who is looking to know about S4 HANA credit management config and flow.

When it comes to credit management, we all know that transaction OVA8 which drives the credit check, plays an important role. This has all the checks and validations that is required to perform credit check:

But in SAP credit management (FIN-FSCM-CR available in FSCM), this transaction has less settings, due to the fact the checks are now controlled thru different transaction in FSCM. So, in general, SAP credit management transaction OVA8 will act as a control mechanism to activate/deactivate SAP credit management FIN-FSCM-CR, further the checks on the static, dynamic, max doc value etc are all going to be carried out at in different transaction at FSCM.

Below is the current OVA8 screen:

where the check box “SAP credit management” activates a BADI (BADI_SD_CM) which has 2 methods one for sale order and the other for delivery:



This BADI carries the data to the FSCM credit management during order creation/delivery, thus the checks defined in the FSCM credit management will become effective. So, the OVA8 transaction is now going to act as a trigger point to carry out SAP credit management (FIN-FSCM-CR).

Credit Segment:

Apart from the credit control area hierarchy, we will come across one more hierarchy in credit management organisation structure which is credit segment. Credit segment is a hierarchy in FSCM SAP credit management and therefore you must link the credit control area with the credit segment, which is one to many.

Definition of credit segment as explained by SAP:

Organizational unit of SAP Credit Management that companies can define, for example, by product type or business area.

In a telecommunications company, a subclassification of relevant business transactions according to the following credit segments could be useful:

Fixed network


Mobile telephones

Where in the above example we can have different credit segment for each sector. Also, there is a partner relationship functionality to link Higher Level Credit Account of or Lower Level Credit Account of; where we can restrict relationship to one credit segment, which acts like a functionality of maintaining credit limit at customer hierarchy level in old credit management.

Above are the some of the main points which explains the difference between FIN-FSCM-CR and FI-AR-CR credit management, now we are going to cover the list of minimum configurations that is required to activate SAP credit management (note credit control area definition/assignment and sales doc /item catg credit activation is not covered here as it follows the existing process).

1.Activation of SAP credit management- SPRO->Financial Supply chain management->Credit Management->Integration with Sales and Distribution->BADI activation of SAP credit Management.

This is an important step, else credit management FIN-FSCM-CR will not be called from SD.

2.Creation of Credit segment:

3.Assignment of credit control area and credit segment:

4: Define “checking Rule”, very important config which holds the static, dynamic, maximum document value etc related checks:

The list of credit checks that is required to be performed is set-up here for a checking rule:

Note: The checks that we see in OVA8 is available in FSCM credit management as shown below in form of steps where the old credit management (right) is also shown as a comparison:

(All the functionalities of OVA8 are not available, please refer to SAP note for missing functionalities).

You can select a step to see the detail set-up where you can fine tune the config:

Example in step 030, dynamic credit check that is included in checking rule 04, has further settings of defining the credit horizon period in days:

Likewise, we have to add other required steps against a checking rule that needs to be checked during credit check.

Since all the required settings are in place, we can now perform the transactions which starts with Master data creation followed by sale order process.

Creation of Credit master data for business partner – Transaction UKM_BP:

Select the BP Role UKM000, and under general->credit profile tab select the Checking Rules that we have defined above which is going to drive the type of credit check,also risk category is now named as risk class which needs to be selected:

Apart from the above, we must enter the credit segment and credit value in the “Credit Segment data” view as shown below, also in the same screen we can also see the credit utilization and credit horizon:

Sale order creation-Credit check:

During sale order creation as usual we get the credit exceeding warning in below format:

In the old credit management, info structures S066 and S067 are used for updating open sales orders and deliveries/billing respectively, as per FSCM these info structures are not used, where as UKM_ITEM is the table which will get updated. Credit exposure category in UKM_ITEM table represents whether it is a sale order or delivery or billing document:

Where 100 stands for Open sale orders:

400 – Open delivery (PGI not done):

500-Open Billing document (w/o accounting document):

Successful posting of invoice will remove the entry from this table.

I hope the above gives an idea on how SD is linked with FSCM SAP credit management, at least to the extent on how it is different from current credit management functionality.

Would welcome your feedback and comments.

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      Author's profile photo Priyadarshan Behera
      Priyadarshan Behera

      Can you update the difference in the earlier process & new process in this forum.

      Author's profile photo Racherla Vyomakesh Bharadwaj
      Racherla Vyomakesh Bharadwaj

      Hi Prasad,

      Thank you for the update on Credit Management with FSCM could you also please show the difference with the earlier process. Thank you

      Best Regards


      Author's profile photo venu gopal
      venu gopal

      Hello Prasad,

      Wonderful document created by you, keep updated your skill.

      Author's profile photo Padmabhupathy Durairaj
      Padmabhupathy Durairaj

      Nice article

      Author's profile photo Rohit Behl
      Rohit Behl

      Good Article! Does anyone know the training available for FSCM?


      Author's profile photo Uday Kumar Ponnuluri
      Uday Kumar Ponnuluri

      Good one!

      Is It Possible to perform a credit check based on credit limit + payment terms in S4Hana FSCM

      Author's profile photo J. HCL Axon SD
      J. HCL Axon SD

      Good one Prasad !!! Expecting more on  S/4 Hana Space.

      Author's profile photo Balamurugan Ramamoorthy
      Balamurugan Ramamoorthy

      Very useful document. Need some business scenario like some failures happening in credit management.

      Author's profile photo D Srinivasa Reddy
      D Srinivasa Reddy

      Hi Prasad,

      Thank you for the detailed documentation on the differences on ECC FSCM-CR and S/4 FSCM-CR, I am looking for the Critical fields configuration in OVA8(in ECC FSCM-CR) like payment term in S/4 Hana but unfortunately I am not able to find it anywhere in S/4 Hana. Can you pls help me to understand how I can activate critical fields in S/4 Hana. when the payment terms changed in Sales order, I want my sales order goes to credit block in S/4 Hana. this happens in ECC using the critical fields configuration.


      Thank you.


      Srinivasa Reddy.

      Author's profile photo Arputharaj Prasad T
      Arputharaj Prasad T
      Blog Post Author

      Hi Srinivasa,

      As per SAP note 2761313, credit check based on critical fields has been discontinued, any such requirement can be customised thru badi UKM_CHECK_STEP.

      Which means in any HANA conversion projects, this would be an additional effort of building this functionality.



      Author's profile photo D Srinivasa Reddy
      D Srinivasa Reddy

      Thanks Prasad for the information. I will check the note.


      Srinivasa Reddy.

      Author's profile photo isap love
      isap love

      Hello Prasad,

      If we define credit check rule, we won't need to define a credit limit based on formula ?

      Author's profile photo Vamshi Vemula
      Vamshi Vemula

      Hi Prasad,

      "Note: The checks that we see in OVA8 is available in FSCM credit management as shown below in Form of steps where the old credit management (right) is also shown as a comparison:"

      I have a question here, in new FSCM comparison against classic OVA8, we are interested in "critical fields" and user fields" option. we are not seeing those in new FSCM. do you have any details to share on what happened to critical fields and user fields and how we can use them in new FSCM?



      Vamshi K

      Author's profile photo Leonid Murashkin
      Leonid Murashkin

      Hi Prasad,

      Could you please suggest how to handle credit limit seasonal factor in S4HANA?

      Is it possible to setup seasonal credit limit for specific business partners?


      Thank you,


      Author's profile photo Kripashankar Neelakandan
      Kripashankar Neelakandan

      Hi Prasad

      500-Open Billing document (w/o accounting document) and Successful posting of invoice will remove the entry from this table.

      Could you please explain on this.

      We have noticed cases where accounting document is posted(exposure under 200), however exposure under 500 remain intact(entry not removed from UKM_PM_BALANCE).


      Thanks in advance

      Vijay Jose


      Author's profile photo Adi Mogilevsky
      Adi Mogilevsky

      How is the new Credit Check integration works with Project Management System, ie how do you block delivering goods for Project from the Project Delivery, which is not directly connected to a Sales Order?

      Author's profile photo Siva Prasad V
      Siva Prasad V

      The Document is Good,you can also include external credit rating

      Author's profile photo kl zhao
      kl zhao

      My previous [Credits] view disappeared, I can't find the reason.

      Fortunately, I saw this article, which gave me a general understanding. I enabled FSCM  unknowingly.


      Also hope to learn more about the systemic knowledge of FSCM,

      Author's profile photo Thangaraj Thomas
      Thangaraj Thomas

      Hi Arputharaj,

      Excellent blog on credit management. Thank you.


      Thangaraj Thomas



      Author's profile photo Sebastian Riedmüller
      Sebastian Riedmüller

      Hi Arputharaj Prasad T,

      thanks, nice blog!

      One question: As you noted down: "where the check box “SAP credit management” activates a BADI (BADI_SD_CM) which has 2 methods one for sale order and the other for delivery: Order: FSCM_CREDIT_CHECK_ORDER, Delivery: FSCM_CREDIT_CHECK_DELVRY. This BADI carries the data to the FSCM credit management during order creation/delivery, thus the checks defined in the FSCM credit management will become effective. So, the OVA8 transaction is now going to act as a trigger point to carry out SAP credit management (FIN-FSCM-CR)."


      In the newer S/4HANA versions, credit management is active by default, and we did not activate any BADI. All the general setup was done, and credit checks work fine for the Sales Order and/or Delivery, we get a credit block if credit limit exceeded, can release, etc.

      Can you explain what exactly the BADI_SD_CM does? For what is it a prerequisite and needed?
      I think i read somewhere that you potentially also need it for the new transactions (UKM_...) that should be used instead of VKM1/3/4 for releasing the blocked orders etc.



      Author's profile photo Prasad Bavanari
      Prasad Bavanari

      HI Team,

      We are implementing FSCM Credit Management on ECC 7.0+, do we need PI or WS-RM also for communication with SD to FSCM?

      Author's profile photo Steffen Mallwitz
      Steffen Mallwitz

      No, you don't need any of that.

      Author's profile photo Prasad Bavanari
      Prasad Bavanari

      Can you share any documentation on how to enable FSCM on ECC 6.9.