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Author's profile photo Gowreshanharan S

Documented Credit Decision/Credit Decision for Document – SAP S4Hana Credit Management

Introduction:

Credit Management is a process in which Company sells a product/service to customers on a credit basis. The company collects payments from customers at a later time, after the sale of the product. The amount of credit fixed by a company for a customer is called a credit limit. The customer can purchase the product from a company within the credit limit, and when the credit limit is crossed, the order is blocked by the system.

The creditworthiness and payment behavior of your business partners have an immediate effect on the business results of your company. Efficient receivables and credit management reduce the risk of financial losses and help you to optimize business relationships with your business partners. SAP Credit Management (FIN-FSCM-CR) supports your company in determining the risk of losses on receivables from your business partners early and in making credit decisions efficiently and in some cases automated. With SAP Credit Management (FIN-FSCM-CR) you can operate centralized credit management. The business systems connected (for example Sales and Distribution, Logistics Execution, and Financial Accounting) report the commitment of a business partner to SAP Credit Management.

Credit Decision for Document:

If the credit standing check has a positive outcome and the credit line is to be adjusted, SAP Credit Management initiates a credit limit request. In the case of a negative result, the system generates a “Documented Credit Decision” which can be used in credit management to check whether credit can still be granted. In contrast to the credit limit request, a document or account is blocked in the process.

A dual, triple, or quadruple control principle can be configured for the initiated workflow. In addition, documents, notes, and documents can be attached, providing for plausibility and transparency throughout the credit decision.

The former procedure for blocked orders via transaction VKM1 can continue to be used but is being replaced successively by the Documented Credit Decision process.

The responsible credit officers can check, approve or reject the Documented Credit Decision via the TCodes SCASE or UKM_MY_DCDS and leave a note. The sales staff access the web-based customer credit information via the “Display Credit Master Data” app (TCode UKM_BP_DISPLAY).

To use the new SAP Credit Management, the component must be enabled in Customizing using the Business Add-In (BAdI) UKM_R3_ACTIVATE. FSCM also requires the configuration of the communication between the system components Sales and Distribution and SAP Credit Management. To do this, BAdI BADI_SD_CM must be enabled.

Prerequisite:

Transaction Code: SU01

Before activating this function, you should first make sure that the Workflow user: SAP_WFRT is active and have the required standard authorizations

Click on Display. There You can find the user which was active.

 

Configuration Steps for Case Management Component:

SAP Credit Management uses the component Case Management as a technical basis for the processing of the following objects:

  • Documented Credit Decision
  • Credit Limit Request

In this Customizing activity, you can find a summary of the activities that you have to execute for this in the Case Management component.

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management.

Step 1: Attribute profile

In this activity, you define which attributes you want to use for the documented credit decision. You also define the display and maintenance properties of the individual attributes. If you also want to use customer-specific attributes for the documented credit decision in addition to the standard attributes.

Create Attribute Profile:

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management ->Create Attribute Profile.

Execute Create attribute profile.

Click on New Entries to create a new attribute profile for the documented credit decision.

Fill in the following data shown in the below image. And click on save.

Attribute Profile FIN_DCD
Description Doc. Credit Decision for Document
Table Name UKM_DCD_ATTR

Click on Attribute Group and fill in the following data shown in the below image and click on save.

Click on Assign Attribute and fill in the following data shown below table and click on save.

Attribute Profile Case Attrib. Attribute Group Row Number Column Number Required Entry Invisible Dropdown Checkbox Can Only be Displayed Modifiable when New Log Field Changes
FIN_DCD CASE_TITLE 1 2 1 false false false false false false false
FIN_DCD CASE_TYPE 1 1 2 false false true false false false false
FIN_DCD CATEGORY 1 3 1 false false true false false false false
FIN_DCD CHANGED_BY 1 15 1 false false false false false false false
FIN_DCD CHANGE_TIME 1 15 2 false false false false false false false
FIN_DCD CLOSED_BY 1 16 1 false false false false false false false
FIN_DCD CLOSING_TIME 1 16 2 false false false false false false false
FIN_DCD CREATED_BY 1 14 1 false false false false false false false
FIN_DCD CREATE_TIME 1 14 2 false false false false false false false
FIN_DCD DCD_APPROVER1 1 18 1 false false false false false false true
FIN_DCD DCD_APPROVER2 1 19 1 false false false false false false true
FIN_DCD DCD_APPR_STAT1 1 18 2 false false true false false false true
FIN_DCD DCD_APPR_STAT2 1 19 2 false false true false false false true
FIN_DCD DCD_CHKDRISKAMT 1 10 2 false false false false false false false
FIN_DCD DCD_CURR 1 11 2 false false false false false false false
FIN_DCD DCD_DOC_STATUS 1 11 1 false false true false false false false
FIN_DCD DCD_OBJ_ID 1 10 1 false false false false false false false
FIN_DCD DCD_OPENCRDTAMT 1 9 2 false false false false false false false
FIN_DCD DCD_PARTNER 1 8 1 true false false false false true false
FIN_DCD DCD_RISK_CLASS 1 8 2 false false false false false false false
FIN_DCD DCD_SALES_EMPLOYEE 1 12 1 false false false false false false false
FIN_DCD DCD_SEGMENT 1 9 1 true false true false false true false
FIN_DCD ESCAL_REASON 1 4 2 false false true false false false true
FIN_DCD EXT_KEY 1 1 1 false false false false false false false
FIN_DCD EXT_REF 1 2 2 false false false false false false false
FIN_DCD PLAN_END_DATE 1 6 1 false false false false false false true
FIN_DCD PRIORITY 1 4 1 false false true false false false true
FIN_DCD PROCESSOR 1 5 2 false false false false false false true
FIN_DCD REASON_CODE 1 3 2 false false true false false false false
FIN_DCD RESPONSIBLE 1 6 2 false false false false false false true
FIN_DCD STAT_ORDERNO 1 5 1 false false true false false false true

 

Click on the save Button.

Create Values for the Attribute “Priority”

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management ->Create Attribute Profile => Define Permitted Values for Attributes => Create Values for Attribute ‘Priority’

Fill in the following value shown in the image and click on save. The following value helps us to indicate the priority of the case created for the Credit Decision for Document.

Create Values for the Attribute “Reason for Escalation”

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management ->Create Attribute Profile => Define Permitted Values for Attributes => Create Values for the Attribute “Reason for Escalation”

Fill in the following value shown in the image and click on save. The following value helps us to indicate the escalation reason of the case created for the Credit Decision for Document.

Assign Reasons for Escalation to an Attribute Profile:

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management ->Create Attribute Profile => Define Permitted Values for Attributes => Assign Reasons for Escalation to an Attribute Profile.

Fill in the Attribute Profile Created in the above step and click on the Tick button.

Add the escalation Reason created in the previous step and click on save.

Step 2:  Status profile

In this activity, you can define the various status forms and the changes from one status to another that you require for documented credit decisions.

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management -> Set Status Administration -> Create Status Profile.

 

Click on New Entries and Create a new Status Profile and click save.

Navigate to Status Value.

Click on Status Value and fill in the following data shown in the table and click on save.

Status Profile Status Status Description System Status System Status Descr. Lowest Status Highest Status Automatic Event for Case
FIN_DCD 10 New 001 Open/New 10 10 false
FIN_DCD 20 In Processing 002 In Process 10 20 false
FIN_DCD 35 Closed Automatically 007 Closed 10 35 false
FIN_DCD 40 Confirmed 008 Confirmed 30 40 false
FIN_DCD 50 Voided 009 Voided/Deleted/Canceled 10 50 true

After adding the value. click on save. The below value will act as a status for the Credit Decision for Document. The responsible person will change the Credit Decision for Document Status based on the business need.

 

Step 3: Number range

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management -> Define Number Range Intervals for Case

Click on Intervals to define the intervals for the Documented Credit Decision Case.

Define the interval and NR Status for the Documented Credit Decision Case.

 

Step 4: Case Types

The following case types are contained in the standard system for SAP Credit Management: Documented Credit Decision (FDCD).

Define Case Types

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management -> Define Case Types-> Define Case Types.

Fill in the following data to create a case type for a Documented Credit Decision and click on save.

Assign the number range which was created in the previous steps.

 

Navigate to Customizing for Case Copy and fill in the following data shown in the image and click save

Case Type Function (Case Component) Copy Merge Split
F_CR ATTRIBUTES true false false
F_CR CASE_LOG_SUB true false false
F_CR SUBCOMPONENT_NOTES true false false
F_CR SUBCOMPONENT_RECORD true false false

 

Create Values for Attribute “Category”.

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management -> Define Case Types-> Create Values for Attribute “Category”.

 

Create an Attribute Category and map it to the case type and save it.

 

Case Type Category Text
FDCD 1 Category 1
FDCD 2 Category 2
FDCD 3 Category 3

 

 

Create Values for the Attribute “Reason”.

 

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management -> Define Case Types-> Create Values for Attribute “Reason”.

 

Create an Attribute reason and map it to the case type and save it.

Case Type Reason Text
FDCD 0000 Unknown
FDCD 0001 Limit Marginally Exceeded
FDCD 0002 No Overdue Items
FDCD 0003 Customer Approves Payment
FDCD 0004 Sales Assumes Responsibility for Risk
FDCD 0005 Positive External Credit Information

 

Configuration Steps For Documented Credit Decision:

  1. Create a Profile for Case Search
Path: SPRO -> SAP Customizing Implementation Guide → Financial Supply Chain Management → Credit Management → Credit Risk Monitoring → Documented Credit Decision→ Create Profile for Case Search.

 

Create a New Profile for Documented Credit Decisions.

Navigate to Selection Fields:

 

Fill in the following data shown in the below image and save it.

 

Case Search Profile Row Number Column Number Case Attrib. Selection Options
FDCD_LOC 1 1 EXT_KEY true
FDCD_LOC 1 2 EXT_REF true
FDCD_LOC 2 1 PROCESSOR true
FDCD_LOC 2 2 RESPONSIBLE true
FDCD_LOC 3 1 DCD_PARTNER true
FDCD_LOC 3 2 DCD_SEGMENT true
FDCD_LOC 4 1 DCD_OBJ_ID true
FDCD_LOC 4 2 DCD_DOC_STATUS true
FDCD_LOC 5 1 DCD_OPENCRDTAMT true
FDCD_LOC 5 2 DCD_CURR false
FDCD_LOC 6 1 CREATE_TIME true
FDCD_LOC 6 2 PLAN_END_DATE true
FDCD_LOC 7 1 PRIORITY true
FDCD_LOC 7 2 REASON_CODE true
FDCD_LOC 8 1 DCD_COMPL_USER true
FDCD_LOC 8 2 DCD_X_OVERRULED false

 

 

Navigate to Modifiable Fields:

Fill in the following data shown in the below image and save it.

Case Search Profile Case Attrib.
FDCD_LOC PLAN_END_DATE
FDCD_LOC PRIORITY
FDCD_LOC PROCESSOR
FDCD_LOC RESPONSIBLE
FDCD_LOC STAT_ORDERNO

 

Define Status for Automatic Closing:

 

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

You have defined the status in the status profile. In Customizing of Case Management, choose Create Status Profile. Make sure that the following settings have been made there:
•The status can always be set.
•The status is assigned to the following System Status: Closed (007)

 

Define Case Types for Documented Credit Decisions:

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

You define which case types the system should use for the creation of documented credit decisions.

    1. Credit decisions for documents
      • This kind of credit decision is used, for example, to document the credit block of a document from

    Sales and Distribution (SD).

Type of Credit Decision Rule for Calc. Score and Credit Limit Case Type Case Type Name
BOB STANDARD FDCD Documented Credit Decision
LEG STANDARD FDCD Documented Credit Decision

Fill in the above details and click save.

Define Approval Process

Path => Financial Supply Chain Management → Credit management → Credit Risk Monitoring → Documented Credit Decision → Define Approval Process

Define the process for the release of documents that have been blocked for credit reasons. It enables you to ensure that only authorized persons can release a document. This approval process relates only to the release, and not the rejection of such documents.

Define the threshold values for the release in ascending order. Note the following details when doing so:

  • You can make a maximum of four entries for each combination of credit segment and risk class. The first entry relates to the credit analyst and is used to provide a better overview. You can also omit it, as it is automatically taken into account by the system.
  • If you define the credit segment, but not the risk class, then the corresponding entry applies to all the risk classes of the credit segment.

The credit analyst is responsible for ensuring that the approval process is adhered to. The following fields are available to him or her in the documented credit decision for this purpose:

  • Person responsible
    Once he or she has entered the name of the person responsible, the person responsible can see the entry in his or her own worklist and can release the document there directly.
  • Approver and Status
      • These two fields apply in cases where an additional approver

    is required in addition to the credit analyst or person responsible. Either of them enters the name of the additional approver here and requests a decision from him or her. As this does not usually involve a user of this application, the credit analyst or person responsible also enters the result of the decision. He or she then either releases the document or rejects it.

  • Approver 2 and Status 2
      • These two fields apply in cases where two additional approvers

    are required in addition to the credit analyst or person responsible. The procedure is along the same lines as the case described above, but with an additional approver.

Credit Segment Risk Class Approver Threshold Value for Approval Currency
1000 A 0 0.00 USD
1000 B 0 0.00 USD
1000 C 0 0.00 USD
1000 D 0 0.00 USD
1000 E 0 0.00 USD

 

 

PDF Form for Snapshot – Assign:

Path => Financial Supply Chain Management → Credit management → Credit Risk Monitoring → Documented Credit Decision → PDF Form for Snapshot

 

You assign the PDF forms that you want to use for your snapshots. A snapshot shows the data that forms the basis of a negative credit decision. You can specify a second form, parallel to the official form, that is only used for internal purposes and so can contain additional information.

1. Assign a form to each combination of Case Type and Rule for Calculating Scoring and Credit Limit.

2. To enter an internal form for a particular combination, create a second entry and set the appropriate indicator.

 

Configuring Event Manager For DCD:

Path => SAP Menu→ Tools → Business Workflow → Development → Administration → Event Manager → Type Linkage

Transaction Code: SWE2

Display the object type CL_UKM_DCD_WF_EVENT and make sure that the field Linkage Activated is active.

 

Test Case:

Maintain Master Data:

Transaction Code: BP

Role: UKM000 Sap Credit Management.

 

Note: The credit Exposure of the customer is above the Credit Limit.

Maintain the relationship between Credit Analyst and business partner.

Relationship category => in Credit Management is managed by.

 

Create Sale Order:

Transaction Code: VA01

Sale Order Number => 378.

Credit Status of Sale Order :

Transaction Code: VA03

Below image shows a sales order blocked for credit and a DCD created as a Case

 

Documented Credit Decision:

Transaction Code: UKM_CASE

Fiori Application: Manage Credit Cases

Approving DCD:

In real life, this DCD should be approved by a credit manager/analyst i.e, not by the person creating or working with a sales order. 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 salesperson.

Credit Status of Sale Order :

Transaction Code: VA03

The below image shows the credit status of the sale order released.

Conclusion:

By following the above steps you can activate approvals for Documented Credit Decision with simple configurations.

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      3 Comments
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      Author's profile photo Adrian Di Nanno
      Adrian Di Nanno

      Hi,

      Question about the DCD Approval process and WF ... In the config of the Approval process there is a way to put several levels of approval and also person responsible. Is there a way or role to determine that "person responsible" like we have a BP relationship for the Credit Analyst ?

      I read that the person responsible seems to be assigned manually. Is there a way to do it automatically (without code, of course), only with configuration or Master Data ?

      Thanks,

      Author's profile photo Nabanita Pal
      Nabanita Pal

      Hi

       

      I have done same set up as you have mentioned. But no workflow is getting triggered at all. Please help

      Author's profile photo Prasanna Venkatesa Narasimhan
      Prasanna Venkatesa Narasimhan

      Hi Gowreshanharan,

       

      Thanks for your wonderful blog. Very Useful with step by step process.

       

      We have below situation and need help.

      Credit Release is completed for a Sales Order and VBAK-CMGST = D (Document released by Credit representative). Order Status is also Credit Released and Invoice completed.

      However in UKM_CASE Transaction when we select the Credit Segment and Document Status = 1, we are still seeing this order appearing in the List.

      I Checked Table UKM_DCD_ATTR and find Document Status is Showing as 1 for this Order.

      We also tried to Select the Order in UKM_CASE and then in Change Field Content, we choose the Status to Void.

      Even after doing the above, the order is still being listed in UKM_CASE.  We are in S/4 HANA 1809 FPS02.

      Kindly suggest if there are any solution to fix this issue.

       

      Thanks and Regards,

      Prasanna