CM – 6. Credit Management in SAP S/4HANA : Process Steps thru FIORI Apps

Credit Management in SAP S/4HANA : Process Steps thru FIORI Apps

In continuation to previous pages on Credit-Management , here’s an attempt to share the learning on S/4HANA Credit Management.

The process run of Credit Management in S/4HANA thru FIORI Applications is captured below.
if someone interested to share the experience and knowledge, I look forward to receive your inputs and map equivalent TCODES in ECC & FSCM TCODES and give credit to co-author 🙂

High-Level Process Description
The stated process can be run in Software: SAP S/4HANA Cloud 1805 & SAP S/4HANA 1709 FPS02

Process	Description
1) Define Credit Policy	·System to implement a company wide credit policy, a central credit management in a distributed system landscape ·Master data based on SAP Business Partner, distributed via Master Data Management (MDM)
2) Perform Credit Check and Create Case	·Credit case for structured processing of credit limit applications ·Track status and result of credit limit applications
3) Credit Rules Engine	·Categorize customers by scoring rules ·Automatically calculate and assign a customer-specific credit limit ·Interface to external credit agencies
4) Evaluate Orders and Evaluate Credit Risk	·Role-based access to credit management information and analysis ·Web-based access to credit information for sales people

Task-Level Activities
The sharing is based on E-Learning from SAP.

Step	Step Description	Step : Detail Description	TCODE	FIORI Apps
1.1	Set a Credit Limit	[BP] in Role Credit Management, Switch from Display to Change & select TAB Credit Profile set fields ·RULES ·Risk-Class ·Check-Rule Switch to “Credit Segment Data” & Select “Credit-Segment” TAB Credit Limit and Control set fields	BP	Manage BP
2.	Enter Sales Order	Create sales order. System gives error – Credit limit of partner failed.	VA01	Manage Sales Order
3.	Assigning Credit Cases (to a credit analyst )	Perform this step to know more about how the credit controller assigns a credit analyst and a person responsible to a credit case after a sales order fails the credit check 1)Manage Credit Cases 2)To locate the credit case, navigate to the search. In the main folder of SAP Credit Management – Credit Case, double-click the Cases folder. & has following sub-folders ·Credit Limit Request ·Credit Limit Request Search ·Dispute Case RDS ·Documented Credit Decisions – Search ·My Documented Credit Decisions (DCD) Documents Folder Business Objects Folder Record & Case Record Models	.	Manage Credit Cases
4.	Reviewing Sales Orders	Role “Credit controller” reviews sales orders 1)Open FIORI app “Manage Credit Cases” 2)To locate the credit case, navigate to the search. Double-click the Cases folder under the main folder of SAP Credit Management – Credit Case 3)(3) Double-click on the Documented Credit Decision – Search 4)(4) Choose Search to display all the credit cases. 5)(5) Double click on the case which you want to open for review. In this demo, double click on the line item with the case id 30000000481. 6)(6) Choose Display <-> Change to to edit the case. 7)	.	Manage Credit Cases
5.	Rejecting Sales Orders	Role “credit controller” rejects a sales order that has failed the credit check 1)Open FIORI app “Manage Credit Cases” 2)To locate the credit case, navigate to the search. Double-click the Cases folder under the main folder of SAP Credit Management – Credit Case. 3)(3) Double-click on the Documented Credit Decision – Search 4)(4) Choose Search to display all the credit cases. 5)(5) Double click on the case which you want to open for review. In this demo, double click on the line item with the case id 30000000481. 6)Click on “REJECT” button	.
6.	Releasing Sales Orders	Role “Credit controller” releases a sales order (1)Select the Manage Documented Credit Decisions tile. (2)You can use the filter to see the line items based on the Credit Analyst or Person Respons (3)From the list, select the credit decision document you want to release. In this demo, select the row for the case ID 30000000151. (4) Choose Release.-Button (5)A success message indicates the document is released.	.	Manage Documented Decisions
7.	Displaying Credit Data	Role “Credit controller” displays credit data (1)Click on “display Credit Data Segment” tile (2)On the SAP Credit Management: Display Master Data for Credit Acct screen, you can enter the parameters to select the credit data that you want to display. (3)(2) In this demo, to display all credit data, choose Execute (4)The credit data displays according to the business partner.	.	Display Credit Data Segment
8.	Displaying Credit Exposure	“Credit controller” displays credit exposure: (1)To open the app, choose the Display Credit Exposure tile (2) To display all credit exposures, choose Execute (3)A list of credit exposure sorted by business partner displays. (4)You can use the buttons at the top of the screen to display, sort, calculate totals and subtotals per business partner. You can also select a row or column and display its data in other formats. (5) To return to the launchpad, choose Home.	.	Display Credit Exposure
9.	Displaying Credit Logs	“Credit controller” displays credit management logs (1)To open the app, choose the Display Credit Management Log tile. (2)(2) On the Application Logs window, you can define filters to display the credit logs that meet the filter criteria. In this demo, we want to display all the credit application logs for the month of March. Open the value help for Severity (3)(3) You want to see logs of all levels of severity. Select Canceled. (4)(4) To specify the date range for the log, choose the date picker. & select start and end date. (5)Click GO (6)The credit management logs display.	.	Display Credit Management Logs
10.	Displaying Credit Limit Utilization	“Credit controller” displays the credit limit utilization : (1) Choose the Display Credit Limit Utilization tile. (2) Here you can specify selection criteria to display the credit limit utilization that meets the criteria. To display all credit limit utilization, choose Execute without specifying any criteria. A list of credit limit utilization by the business partner displays. Credit Limit = Limit which is set (or allowed) Credit Exposure = Amount which is consumed / used/ Utilization % = (Credit Exposure / Credit Limit) % Exposure Amount = Amount (negative or positive) – remaining Credit-limit (in NEGATIVE) or OVERUSED Amount (in positive) if above credit-limit. Exposure Amount = -1 multiplied by ( Credit limit minus Credit Exposure) i.e. if Utilization is less than 100, then Exposure Amount will be there and in negative. & if “Exposure Amount” is present in negative, the ICON is GREEN, i.e. the Credit-Exposure is within limit Credit-limit, i.e. Credit-Exposure < Credit-Limit.	.	Display Credit Limit Utilization
11.	Displaying Credit Master Data	“Credit controller” displays the credit master data: (1)Choose the Display Credit Master Data tile (2)You can specify selection criteria to display the credit master data that meets the criteria. To display all credit master data, choose Execute without specifying any criteria. You can use the buttons at the top of the screen to display, sort, calculate totals and subtotals per business partner. You can also select a row or column and display the data it contains in other formats.	.	Display Credit Master Data
12.	Analyzing Credit Limit Utilization	Analyzing Credit Limit Utilization. Use the analytical app to filter credit data and view the credit data based on various parameters.	.	Analyzing Credit Limit Utilization

Advanced Credit Management

The Advanced Credit Management deals with Calculating Credit Ratings, Creating Credit Limit Requests and Approving Credit Limit Requests, such that the Approved Credit Limits reflect in the Business Partner Master data.

Hopefully, should be in position to share Advance Credit Management processes steps, if we would get that experience in current project 🙂

Looking forward to receive your feedback and inputs in the comments section. Or please feel free to connect with me thru my Contact-Page

Best Regards,
Monika