Functional Outline of SAP Credit Management

In this blog, we will certainly make a summary of the important points about SAP Credit Management.

First, we will explain the differences between “FI-AR Credit Management” and SAP Credit score Management.

SAP Credit management fetches the info in real-time from the SD and FI modules. Allowing a credit score analysis on the flight as well as gives us the certainty of an accurate analysis of the customers.

Now let’s go through some of the frequently asked questions about Credit Report Management:

What permits to develop SAP Credit History Management?

Credit Limit Management

• Apply a company-wide credit plan

• Manage consumer credit report profile

• Central debt monitoring in a distributed system landscape

Credit Case

• Credit rating situation for organized processing of credit limit applications

• Track status as well as the outcome of credit limit applications

Credit Scores Rules Engine

• Categorize consumers by scoring guidelines

• Automatically determine and assign a customer-specific credit limit

• Credit rating check guidelines

• Model and execute own consumer credit history cards

Credit Rating Details

• Interface to outside credit agencies

• Input parameters for scoring regulations

Credit Scores Manager Analytics

• Role-based accessibility to credit score administration information and also analysis

What permits a Credit history Policy Engine?

Develop a scoring formula and also credit limit formula by utilizing the formula editor. Criteria (as an example, organization partner information), as well as features, are made use of as input specifications.

One scoring up formula, as well as several credit line formulas (for every credit rating section), are appointed to the regulation for racking up as well as credit line estimation, which is appointed to each client in the credit score profile. The risk class is figured out straight from the score.

In customizing, particular rating ranges that do not overlap are designated to every danger course. For the check rule, the system identifies the actions which are taken to inspect the creditworthiness of a client when a sales order is created. This might include the static check of the credit limit or check of the greatest dunning degree.

Customer-specific process chains in SAP Credit score Monitoring can be specified with events that cause follow-up actions.

Determine Interior Credit Report

In the scoring, you can combine customer master data and the transactional data (e.g. repayment habits) to score a customer. The scoring up is based on a formula that can be freely defined by the user.

In the scoring method, you can include rankings from external resources. Multiple external rankings can be mapped to an internal score to make them comparable.

Make use of a black-rated consumer list to stop service with high threat consumers

Example credit history management procedure:

• A sales order that is entered into the sales system can be checked immediately in the credit report management system.

• If the check fails, the order is blocked as well as the credit report supervisor can assess the client’s debt profile.

• He can request a credit report from an external source. (e.g. D&B).

• Based on new outside info the scoring and the new proposal for credit-limit can be immediately calculated by the system. 

• Based upon the new credit line the credit scores supervisor can release the sales order immediately. 

Credit Score Monitoring with Central Payments

You can also utilize SAP Credit scores management with Central Payments in Central Finance.

For this situation, it is essential to apply SLT and with IDoc/ ALE, etc. You can send the SD component details from the resource system to the target system.

That’s all for today’s blog. If you are looking for more insightful blog posts visit our website. Before you enroll in ZaranTech’s certification course on SAP FSCM, do check out the tutorial for Beginners: