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SAP FSCM - Note

The document describes the configuration steps for credit management in SAP S/4HANA. It discusses defining credit segments, customer credit groups, assigning credit control areas, and other setup steps. It also covers configuring credit limit formulas, risk categories, and integrating external credit agency data.

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353 views11 pages

SAP FSCM - Note

The document describes the configuration steps for credit management in SAP S/4HANA. It discusses defining credit segments, customer credit groups, assigning credit control areas, and other setup steps. It also covers configuring credit limit formulas, risk categories, and integrating external credit agency data.

Uploaded by

dhiraj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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S/4 HANA Credit Management Configuration Process

Configuration steps in Credit Management Process in SAP S/4 HANA and its functionality.
The Standard BP role for Credit Management is UKM000 – SAP CREDIT MANAGEMENT.
Configuration Steps for Credit Management in S/4 HANA.
Step 1: Define Credit Segment
Path:

New Entries,

Save it.
Only if Needed:
Note of External Credit Information, you need to create Rating Procedure,
Make sure that the external information providers are connected to the following interface via the XI infrastructure:
Credit Information Query out (Query Credit Information from External Data Providers) in the namespace
http://sap.com/xi/FSCM.
Path:
New Entries,

This rating procedure, you need to assign with credit limit calculation,

Select the created rule and click on score, credit limit and rating procedure.
ID Type = Credisafe.
Step 2: Define Customer Credit Group

Note: In SAP S/4 HANA, the Credit Management Calculation has enhanced with formula editor function button. Following
are the calculation formula criteria:
1. Currency
2. Credit Segment
3. Score

Step 3: Assign Credit Control Area and Credit Segment. Transaction Code: UKM_SEGMENT
Path:
New Entries.

Once assignment done with credit control area and credit segment, then save it.
Step 3: Assign Sales Area to Credit Control Area.
This is the normal steps which we are doing in SAP ECC system.

Step 4: Enter Settings

Condition Partner: Update the subtotal with value “A” for Credit Release check for NET VALUE condition type.
Step 5: Determine Active Receivable Per Item Category. Transaction Code: OVA7
Activate as per your required Item Category.

Step 6: Define Credit Group. Transaction Code: OVA6

You can create your own credit group as per requirement.


Step 7: Assign Sales Document and Delivery Document.

If you want to activate the Credit Management at Delivery Level, you can update the same as well.
Step 8: Define Automatic Credit Control. Transaction Code: OVA8
Step 9: Define Rick Category and Assignment.

Note: As we need to activate the BADI for the following Credit Management in S/4 HANA.
Select the BADI and click on ACTIVATE button.
This complete the configuration procedure for the SAP S/4 HANA for FSCM Credit Management.
Customer Master Setup:

Enter the Rules, Risk Class, Check Rule and Customer Group under Credit Profile tab, which you
will get under UKM000 BP role.
After that, go to Credit Data Segment and fill up the value as shown in below snap shot,

Update the value for Limit Defined, i.e. Credit Limit.


Save it.
This complete the Master Data Setup for FSCM Credit Management in SAP S/4 HANA.
O2C Process and FSCM Effects:
After Credit Limit Exceed,
As the Risk Category kept as Error, so it will not be allowed saving the sales order.
In this blog some commonly asked questions will be addressed:
1. Where is SAP Credit Management information displayed in S/4HANA?
2. What is included in the base license of SAP Credit Management in S/4HANA?
3. How are some of the new features of SAP Credit Management Configured?
4. What is the minimum configuration required for SAP Credit Management in S/4HANA?
New Features of SAP Credit Management in S/4HANA
This graphic presents a good overview of the features of Credit Management in S/4HANA from a functional standpoint. The
features of Credit Limit Management, Credit Rules Engine and Credit Information are explored in this blog. The features of
Documented Credit Decisions, the follow on process engine and Credit Limit requests via Credit Cases will be addressed in
my next blog. A blog written by a RIG colleague shows an overview of functionality in more detail and can be linked to
here.

Where is Credit Management Information displayed in S/4HANA?


The Business Partner displays where the Credit Management data is stored. In the BP Role of “SAP Credit Management”
the Scoring Rules, Risk Class, Check Rule and the integration to External Credit Agencies are all listed. This can be accessed
via the GUI t/code “BP” (refer to the Credit Profile and Creditworthiness tabs) or in Fiori by the “Manage Business Partner”
app. Here is an example of the BP t/code:
What is Included in the Base License of SAP Credit Management in S/4HANA?
The base license includes the manual features for setting credit limits, setting risk classes and setting an internal score for a
Business Partner. If an automated calculation is needed, then an additional license is required.

For the link to an external credit agency, an xml formatted file can be added as project work or the data can be input
manually on the Business Partner as a part of the base license. An additional license is required to use the cloud-based link
to credit agencies. The cloud-based service provides about 20-30 credit agencies such as Dun & Bradstreet right out of the
box.

How are some of the new features of SAP Credit Management Configured?
Setting Credit Limits
Credit Limits are referenced in the Sales Order Process. A Sales Order will be put on hold if the Credit Limit is exceeded. The
first step in setting a Credit Limit is to define a formula the IMG under FSCM > Credit Management > Master Data > Define
Formula. Formulas are set up using the attributes of the Business Partner and standard functions. The Formula set up looks
like a “calculator” similar to the way FI validations and substitutions are configured. A BADI can also be used to augment
the content delivered by SAP. Credit Management data such as what is stored on the Creditworthiness tab (for example,
Credit Standing, Status, Rating, etc.) can be used in the Formula. The Formula is then linked to the Credit Limit in the IMG
under FSCM > Credit Management > Master Data > Create Rule for Scoring and Credit Limit Calculation.
Define Formula example:
Create Rule for Scoring and Credit Limit Calculation example:

Setting Risk Classes


Risk Classes can be used to set a credit limit or to decide to release blocked sales orders in the Credit Case. The Risk Class
can be manually input on a Business Partner or it can be calculated based on the Credit Rating of a Business Partner. The
Risk Classes are defined in the IMG under FSCM > Credit Management > Master Data > Create Risk Classes.
Setting an Internal Score
Scores can be used to set a credit limit or to decide to release blocked sales orders in the Credit Case. Usually an internal
score is used mainly to derive a Risk Class. Like Setting the Credit Limit, the first step in setting an internal score is to define
a formula the IMG under FSCM > Credit Management > Master Data > Define Formula. The Formula is linked to the
Internal Score in the IMG under FSCM > Credit Management > Master Data > Create Rule for Scoring and Credit Limit
Calculation. Any of the attributes in the Creditworthiness tab can be used to Score a Business Partner.
Link to an external credit agency
In the Business Partner on the Credit Profile tab, an xml file containing credit data can be linked. The URL and the RFC to
the cloud-based tool are created in the config step: In the IMG under FSCM > Credit Management > Master Data >
Integration of External Credit Agencies or FSCM > Credit Management > Current Settings > Integration of External Credit
Agencies

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