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Author's profile photo Mrinal Kanti Roy

New Documented credit decision (DCD) solution with workflow for Financial supply credit management (FSCM) in S/4HANA 1909 release

Credit management is one of the most important aspects in ‘Order to cash’ flow. SAP had two system solutions for credit management – one is credit management (FI-AR-CR) with Sales & Distribution and another with Financial supply chain management (FIN-FSCM-CR) which has more advanced functionalities. In S/4HANA, FIN-FSCM-CR is mandatory to be used for credit management as stated in note 2270544.

Sales orders blocked in credit check are released through ‘Documented credit decision’ (DCD) in S/4HANA. SAP has further enhanced the creation of DCD solution through Workflow in S/4HANA 1909 release. My present blog is first to discuss on Documented credit decision (DCD) with credit management in S/4HANA 1909 release.

Credit check in SAP can be set to take place at the creation of sales order, delivery and at goods issue in a typical order to cash cycle. A sales order is blocked for credit if the credit exposure exceeds the set parameters for credit limit / control for that customer and then a ‘Documented credit decision’ DCD is created as a Case in FSCM in S/4HANA as in below image. Credit manager or Credit analyst decides whether to release (or reject) the sales order for credit block.

Below image shows a sales order blocked for credit and a DCD created as a Case in S/4HANA 1909 release.

Now, if this DCD is approved by Credit analyst , then the sales order gets released subsequently as shown in below image.

Now, this solution of DCD has been enhanced in S/4HANA 1909 release. In real life, this DCD should be approved by a credit manager / analyst i.e not by the person creating or working with sales order. With 1909 release , the task of creating the DCD is delegated to the generic workflow user (SAP_WFRT) to avoid the requirement of credit management authorization to a sales person . The event created for DCD for a blocked sales order is shown in below image.

The important configuration for creation of DCD through Workflow in S/4HANA 1909 release is the below setting in SWE2.

Refer the SAP Credit management configuration guide as in below link for more details.

https://help.sap.com/doc/792426924faa44698c76733bd0b88072/1909.000/en-US/loiobb4c195466432b18e10000000a174cb4_PDF_EN.pdf

This creation of DCD through workflow makes the credit management solution more robust.

This blog is based on my personal insight, observations and tests. Will appreciate your feedback and comments.

 

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      5 Comments
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      Author's profile photo venu gopal
      venu gopal

      Hello Mirnal,

      It is veery useful document you shared.. keep it up.

      Author's profile photo Genevieve NOWACZOWSKI
      Genevieve NOWACZOWSKI

      Thanks @Mrinal Kanti Roy for your presentation.

      Based on your implementation, could you give an example of the Business side of the new benefits of this approach than others.

      Author's profile photo Mrinal Kanti Roy
      Mrinal Kanti Roy
      Blog Post Author

      Thanks ..

      In my views , business benefit is the separation of DCD from the sales persons activities..

      Author's profile photo Adi Mogilevsky
      Adi Mogilevsky

      Hi Mrinal

      I would assume that the workflow will send a message via Fiori Inbox App to the Credit Clerk, who is in charge of this Customer to look into the Credit Case and make a decision.

      Otherwise, how this Credit clerk will know about a new task to look into the Credit Case?

      BR,

      Adi

       

      Author's profile photo KAPIL MEHTA
      KAPIL MEHTA

      Dear Mrinal

      Thanks for amazing blog.

      I have a query : We have migrated from ECC to S4H 2020. Customer wants a report which shows details of user who released sales order that was blocked due to credit block along with other details like release date time etc. If we use UKM_CASE or UKM_MY_DCDS, Can we get this report in standard in S4H ?

      In ECC, this report is not present in standard functionality so customer has developed custom report on top of release being done using VKM* tcode.

      Regards

      Kapil