SAP Credit Management Overview.pdf
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Transcript of SAP Credit Management Overview.pdf
![Page 1: SAP Credit Management Overview.pdf](https://reader030.fdocuments.net/reader030/viewer/2022033014/55cf9b14550346d033a4a42f/html5/thumbnails/1.jpg)
SAP Credit Management
Presented by: Vikram Gollakota
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Agenda
• SAP Credit Management
– Business Partner
– Credit Scoring
– Credit Integration
– Workflow
– Credit Checking
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SAP Credit Management
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Description
SAP
New Receivables Credit
Management
Old SD Credit Management
Credit Checking
Integration platform to third-party credit bureaus via SAP PI
Credit rules engine for automatic customer risk scoring and credit limit calculations
Workflow for any credit events
Multiple credit limit categories to capture owned risk, personal/bank guarantee, insurance etc
Credit limit approval and automatic updates to master
Standard BI content and Portal Access for reporting and analysis
FSCM Credit Management vs. SD Credit Management
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Business Partner
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Business Partner is a ‘Clone’ of
Customer Master
Each Department can maintain a
detailed extended view
Business Partner
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Choose a Rule for Calculating a Score
Business Partner – General Data
Risk Class can be automatically or
manually set
Select what type of Credit Check to perform for this
customer
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Credit Segment same as ‘Credit Control
Area’ or ‘Company Code’
Business Partner – Credit Segment Data
Select Rule for Calculating Credit
Limit Automatically
Credit Limit Data
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A Customer can be linked to other
entities
Business Partner – Relationships
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Business Partner – Financial Information
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Credit Scoring
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Rules for Calculating Credit Score and Limits
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Formulas
Define Formulas for various scenarios
Click on the Formula Editor to
maintain the calculation logic
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Formula Editor
Series of conditional steps. Kind of a ‘IF’, ‘THEN’, ‘ELSE’ logic
Choose from a list of fields, functions and operators to
define a step
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Credit Limit Calculation
Same concept as Credit Score
Formula maintenance
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Risk Class Determination
Map calculated scores to Risk
Classes based on ranges
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Credit Integration
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External Credit Rating Data Integration
Automatically Populate Credit
Bureau Data
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• Use SAP XI/PI or WS-RM as the Integration Platform
• Integrate Sales and Financial from SAP and non-SAP systems
• Integrate rating information from External Agencies
• Real-time Credit Checks
Standard Interfaces for Credit Bureau
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Credit Workflow
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Credit Workflow Triggers
Events to monitor to perform automated
actions or route to Credit Analysts
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Credit Check
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Check Rule
Select what type of Credit Check to perform for this
customer
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Check Rule
Use system standard Check Rule or create
your own
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Check Rule
Check Rule is a combination of
individual checks or steps
Maintain Values to Check Against
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Credit Checking
• SAP FSCM Credit Checking can be enabled to integrate with both SAP and non-SAP instances
• In Old Credit Management module you could have only done Credit check for one local system
• Now you can have one global FSCM Credit Instance and have multiple SAP and non-SAP real-time perform credit checks
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Advanced Features
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Credit Score Risk Class
Scoring Engine
Scoring Model
Credit Limit
Credit Check
Check Rules
Scoring Engine
Scoring Model
Credit Decision
3rd Party Assessment
Characteristics
Financial Information
Map
Scoring Model
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Scoring Model Overview
• Credit Score and Credit Limit are computed using HR CDA’s Scoring Engine
• Scoring Engine allows definition of complex mathematical formulae using simple structures like Factor Tables and Assignment Tables
• A Factor Table is a tool to capture weighted summation: – Z = aX + bY
• An Assignment Table is a tool to capture conditional assignment: – IF ‘Customer Since’ > 10 years THEN ‘5’
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Risk Score – An Example Risk Score = Financial Score
+ Payment Index
+ Business Score
+ Rating Agency Assessment
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Business Score
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Financial Score
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Credit Limit – An Example Credit Limit = 0% of Tangible Net Worth If Risk Score is 0
15% of Tangible Net Worth If Risk Score is between 0 and 20
35% of Tangible Net Worth If Risk Score is between 20 and 40
40% of Tangible Net Worth If Risk Score is between 40 and 60
50% of Tangible Net Worth If Risk Score is between 60 and 80
55% of Tangible Net Worth If Risk Score is between 80 and 100
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Credit Limit Approval
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Credit Dashboard: Workflow: Credit Review
Request for an increase in limit
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Credit Dashboard: Workflow: Credit Review
Automatic notes are added to support
the credit limit request decision.
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Credit Dashboard: Workflow: Credit Review
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Workflow - Configuration
Configurable workflow to enable
quick business requirement
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Credit Dashboard: Workflow: Credit Review
Credit Limit Request forwarded for
Approval
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Credit Limit Approval - Analyst
Credit Limit Request Approved – Ability to capture notes at an approval level
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Credit Limit Tab – show approved amount.
Credit Limit is updated in the system directly after the DOA is put in effect.