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Author's profile photo Divya Jain

SAP S/4 HANA – Superordinate-Subordinate Relationships for Credit Limit Check

In this blog post, we will take a look at how to enable Credit Limit Checks on a Business Partner other than the Payer for a Sales Document posted in the system. This is a part of SAP Credit Management in Financial Supply Chain Management having integration with Sales and Distribution. We will enable this through setting up Subordinate-Superordinate Relationships between Business Partners.

 

SAP Credit Management enables performing a check on the Business Partner’s credit limit while posting a Sales Document. The standard functionality performs a credit check on the “Payer” chosen in the Sales Document posted according to its relevant Check Rule.

There may arise a requirement where the credit limit check for a particular account/ group of accounts is to be performed on a “Parent” Business Partner, instead of the Payer.

 

Earlier, this could be done through UKM_BP where there were two possible ‘Relationship categories’ specially referring to the Credit Management:

  • FUKM001 – Higher-level Credit Management Account of… (e.g. holding company/ parent company – head office)
  • TUKM001 – Lower-level Credit Management Account for… (e.g. subsidiary/ affiliate/ associated company – branch)

 

SAP S/4 HANA 2020 release onwards, these categories have been renamed to:

  • FUKM001 – ‘Superordinate Credit Account From’
  • TUKM001 – ‘Subordinate Credit Account To’

The above relationships can be maintained via Transaction Code “BP” and then opening up the “Relationships” tab.

In a case where sub-segments are maintained, but credit limit check is performed only at the main segment level, a relationship needs to be maintained for both – at the main segment and sub-segment level.

Maintain%20Relationships

Maintain Relationships

 

If such a relationship is defined, a credit limit check will not only be performed on the Payer but also on the Payer’s Parent (Superordinate account).

 

If we require the system to perform a check only on the Superordinate Credit Account – and ignore all Subordinates, this can be done in the following manner:

  • The Superordinate Credit Account will be assigned the normal Check Rule in SAP Credit Management
  • The Subordinate Credit Accounts will be assigned a special Check Rule (which does not have any Static/Dynamic Credit Limit Check.

 

Let us see how SAP Credit Management will perform Credit Limit Checks in different scenarios:

We will consider three customers in different combinations – CUST_MAIN, CUST_BRANCH1 and CUST_BRANCH2.

Scenario Sold-to-Party Payer Relationship Check Rule Credit Limit Check performed on:
1 CUST_BRANCH1 CUST_BRANCH1 None Normal CUST_BRANCH1
2 CUST_BRANCH1 CUST_MAIN None Normal CUST_MAIN
3 CUST_BRANCH1 CUST_BRANCH1 CUST_MAIN is Superordinate to CUST_BRANCH1 CUST_MAIN – Normal CUST_BRANCH1 – Normal CUST_MAIN and CUST_BRANCH1
4 CUST_BRANCH1 CUST_BRANCH2 CUST_MAIN is Superordinate to CUST_BRANCH2 CUST_MAIN – Normal CUST_BRANCH2 – Normal CUST_MAIN and CUST_BRANCH2
5 CUST_BRANCH1 CUST_BRANCH2 CUST_MAIN is Superordinate to CUST_BRANCH2 CUST_MAIN – Normal CUST_BRANCH2 – No Check CUST_MAIN
6 CUST_MAIN CUST_BRANCH1 CUST_MAIN is Superordinate to CUST_BRANCH1 CUST_MAIN – Normal CUST_BRANCH1 – Normal CUST_MAIN and CUST_BRANCH1
7 CUST_MAIN CUST_BRANCH1 CUST_MAIN is Superordinate to CUST_BRANCH1 CUST_MAIN – Normal CUST_BRANCH1 – No Check CUST_MAIN
8 CUST_BRANCH2 CUST_BRANCH2 CUST_BRANCH1 is Superordinate to CUST_BRANCH2 and CUST_MAIN is Superordinate to CUST_BRANCH1

CUST_MAIN – Normal CUST_BRANCH1 – Normal

CUST_BRANCH2 – Normal

CUST_MAIN, CUST_BRANCH1 and

CUST_BRANCH2

9 CUST_BRANCH2 CUST_BRANCH2 CUST_BRANCH1 is Superordinate to CUST_BRANCH2 and CUST_MAIN is Superordinate to CUST_BRANCH1

CUST_MAIN – Normal CUST_BRANCH1 – No Check

CUST_BRANCH2 – No Check

CUST_MAIN

 

By setting up the above relationships, you will be able to perform Credit Limit Checks on a Business Partner other than the Payer selected for the Sales Document. The Credit Limit set up in the Superordinate Credit account will be picked up to perform the Credit Limit Check.

Do share your thoughts and feedback in the comments!

 

Check out other blogs on SAP S/4 HANA here.

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      12 Comments
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      Author's profile photo Mudasser Farooq Mian
      Mudasser Farooq Mian

      Hi Divya,

       

      Referring to your below statement, can you please explain how to define the special check rule. any Screenshots would be appreciated.

      • The Subordinate Credit Accounts will be assigned a special Check Rule (which does not have any Static/Dynamic Credit Limit Check.
      Author's profile photo Divya Jain
      Divya Jain
      Blog Post Author

      Hi Mudasser,

       

      You can create a new check rule and not assign any credit check steps to it. Thus, no check steps will be performed when this rule is assigned to a customer. Please see sreenshots of the No Block check rule as an exmaple:

       

      Screenshot%20of%20No%20Block%20%28NB%29%20check%20rule%20steps

      Screenshot of No Block (NB) check rule steps

      Author's profile photo Mudasser Farooq Mian
      Mudasser Farooq Mian

      Hi Divya,

       

      I have created a new check rule 'Z1' for this. But, this does not change the 'credit account' of Sales document in VBAK to Superordinate account.

       

      Could you please help

      Author's profile photo Divya Jain
      Divya Jain
      Blog Post Author

      Hi Mudasser,

       

      Have you created the superordinate/ subordinate relationship in the BP for the credit segment on which the credit check is being performed? That relationship will determine the credit account for the sales order.

      Author's profile photo Mudasser Farooq Mian
      Mudasser Farooq Mian

      Hi Divya,

       

      I have maintained the parent-child relation in BP (screenshot attached). The payer has been maintained in the order (screenshot attached) but the credit account in VBAK is still the child account instead of parent account (screenshot attached).

      P.S: We're using scenario 7 from the table

       

       

      Regards,

      Author's profile photo Mudasser Farooq Mian
      Mudasser Farooq Mian

      Hi Divya,

      Waiting for your feedback on this scenario as shared in the attached screesnshots.

      Relationship maintained in BP, but still Credit account being picked in Sales order is of Child Account.

      As per your scenario no. 7, Sold to party is main Customer, Payer is Branch/Child account, but credit account is not being picked as required.

      Please confirm if anything else in Configuration or in Front end needs to be done.

       

       

       

      Author's profile photo Divya Jain
      Divya Jain
      Blog Post Author

      Hi Mudasser,

       

      Can you please let me know which version of SAP are you working on? This blog is specific to release 2020 and beyond.

      Other than that, do you also have a main credit segment where all your sub-segment exposures are rolled up? If you, you need to create the relationship at the main segment level too.

       

      Author's profile photo Mudasser Farooq Mian
      Mudasser Farooq Mian

      Hi Divya,

      We are using S4hana 1909. we have only one credit segment, no main segment exists. Any alternate way we can do this?

      Thanks.

      Author's profile photo Divya Jain
      Divya Jain
      Blog Post Author

      Hello,

      If you have only one credit segment, it should be enough to create the relationship in that segment.

      Author's profile photo Fernando Jardim Junior
      Fernando Jardim Junior

      Hello Divya,

      first thank you very much for sharing this content.
      I have a question, please if you can answer I would appreciate it.
      The company we are working on has several credit segments but does not use the main segment 00000.
      Is it possible to determine more than one superior credit account relationship between the same partners but assign a different credit segment to each of the relationships? That is, is it possible to assign two or more credit segments to a superior account relationship?

      Att.

      Fernando Jardim

      Author's profile photo Divya Jain
      Divya Jain
      Blog Post Author

      Hello,

       

      Yes, the relationships are created at a segment level. It is not mandatory to use the main segment if you do not use it. You can assign more than one relationship between the same business partners at different credit segments.

      Regards,

      Divya

      Author's profile photo Ulisses Buffon
      Ulisses Buffon

      removing the check rule from subordinated BP worked for us on rel.1909