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Credit Management version 1.

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Credit Management
In S/4 HANA
Sr.No
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Topics
Introduction
Master Data
Configuration
Technical Settings
Setup WS-RM
Test Case
Approval Process
New Transaction

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

1. Introduction
The traditional credit management has been stayed for a longtime. Most of the companies using FIAR and SD have implemented the traditional credit management to avoid the losses because of
credit risk. But FIN-FSCM-CR takes the credit management to a different level. The FSCM credit
management provides enhanced functionality to monitor credit and exposure risk of a company. It is
an extension over the traditional credit management (FI/SD-CM), which enables the user to have
better control and more transparent view on receivables. Generally business process will not change,
however user will need to use new transaction as old transaction are obsolete in S/4 HANA.
Based on my experience, I have summarized the basic differences between the two ways of
managing the credit in SAP.

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Below Transaction and report are not available in S/4 HANA

Credit management has moved from SD to FSCM in S/4 HANA.


SAP Financial Supply Chain Management (FIN-FSCM)

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

2. Master Data
As we have checked in last document how business partner need to create in S/4 Hana, through below
process how credit master has been extended in business partner.

Business Partner
is a CLONE of
Customer Master

Each Department
Can Maintain
Detailed Extension
View

Click on credit profile tab


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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Choose Rule for


Calculation a Score

Risk Class can


Automatically or
Manually set

Select what type of


Credit check to
perform for this
Customer

If any company want to get evaluated their new customers on credit worthiness from any third party then,
need to setup interface between S/4 Hana and third party. Then third party send the information through
interface and it will updated in BP in external credit information.
Click on save button

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Click on Credit Segment Data, below screen appear.


Maintain Credit
Segment

Select the rule for


Calculating Credit limit
Automatically

Credit limit Data

Credit Exposure gets


updated after sale
order entered

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Credit Management version 1.0

If user has click on information icon

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Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

then user can see all deatils

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

3. Configuration
Rules for Calculating Credit Score and Limit

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Create Credit Segment


In S/4 Hana we cannt assign credit control area directly in customer master.

Create rating procedure has use to line up the with external party

Customer Group

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

User can create his own rule for scoring and credit limit and user can create multiple rule and assign to
different customer as per business requirement.

Click on display formula

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

User can create his own formula based on below parameters

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Create our own rule , click in formula editor

Create Risk Class

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Create check rule as all functionality of OVA8 are incorporated in check rule, after implemenated Credit
management in S/4 Hana OVA8 screen look like as below.

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Click on new created rule and select checks option.


Here User can select the task as per busienss requiremnt.

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

For ex- user can horizon days

After maintaining all required details user can see parameter overview.

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

After that link to credit segment to every individual step and save.

Here user can decide which document will consider under credit check.

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Create credit segment but it should be similar like earlier segment.

Assign credit control area to credit segment.

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Assign credit control area to sale area.

Define automatic credit control (OVA8)

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Create Risk categories

4. Technical Settings
Need to activate few BADIs to transfer from SD to FSCM.

UKM_R3_ACTIVATE
BADI_SD_CM
UKM_FILL

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

5. Setup WS-RM or PI system


While reading and researching on FSCM credit management, one question always arise that why FSCM CM
required WS-RM or PI system in place, so please refernce below data.
While debuggring also we got to know that connection is required from WS-RM or PI system.

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

System and Component Landscape

Service Interfaces: Overview


Integrating Services in the System
Configure SOAP Runtime
Activate HTTPS Port
Import Security Certificates (for Web service use without local shortcut)
Maintaining Table T000
Set Up Web Service Configuration
Connecting External Information Providers

Set Up Web Service Configuration


Procedure
You have to configure the Web service differently depending on whether you are working in a single or
multiple system scenario.

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Settings in a one-system scenario


Choose one of the following navigation options:
Transaction SOAMANAGER
Transaction SRT_TOOLS WS ConfigurationSOA Manager
Define a local shortcut configuration:
On the initial page SOA Management, choose Web Service Configuration. Search for the credit managementspecific services (such as the entry credit*).
Select the sender service (Consumer Proxy), and choose CreateConfiguration for Local Shortcut.
Enter the name for the logical port, select the Logical Port is Standard field, and choose Continue.
In the Service Definition field, enter the receiving service, and choose Done.

Please use below link for more deatil WS-RM


https://wiki.scn.sap.com/wiki/display/XI/NonPI+Synchronous+FSCM+Integration+via+WSRM+and+Direct+Updates
We need to setup below service in WS-RM
1.
2.
3.
4.
5.
6.
7.
8.

CreditCommitmentNotification_In
CreditCommitmentNotification_Out
CreditPaymentBehaviourSummaryNotification_In
CreditPaymentBehaviourSummaryNotification_Out
CreditWorthinessChangeInformation_In
CreditWorthinessChangeInformation_Out
CreditWorthinessQurey_Out
CreditWorthinessQurey_In

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Click on Web Service confirguration.

Put Credit* and enter system will show details list which is realted to credit management. After confirgure all
8 services which is mentioned above. user can add many more credit services as per business requirement.

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

If there is no with WS-RM or PI systrem.


System will show below message.

In Debugging found service CreditWorthinessQurey_Out is not working because connection has not made.
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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

6. Test Case
Sale order no 82

Once sale order save amount 2200 will transfer in customer master

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

7. Approval process
There are two process to get internal approval for credit limit set for any customer.
1) Once the user save the customer master system will trigger one work flow to concern person and which
user can see in transaction SCASE.

2) If oragination is not ready to set up workflow then, user can this activity manually as well, through same
trasaction.user can fill all required details and save the document.

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Another user will search for the case and approve the credit limit.

8. New Transaction

To rebuild the credit exposure do following:


Use UKM_COMMITMENTS to clear all the exposure.
Execute UKM_RFDKLI20_AR and UKM_RFDKLI20
Execute UKM_TRANSFER_ITEM
Execute UKM_RVKRED07. Make sure nothing is processing at that time as it will put lock on all Sales
related tables.

UKM_TOTALS
report UKM_ITEM_LOG
Function SD_ORDER_CREDIT_CHECK
Function MCV_UPDATE_CM_ORDER
BAdI BADI_SD_CM
UKM_TRANSFER_VECTOR

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Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

For AR items - UKM_TRANSFER_CREDITS, as the other poster said


For SD items - UKM_RVKRED77
For Business Partner Commitments - UKM_COMMITMENTS
For Payment Behavior - UKM_TRANSFER_VECTOR
the credit limits per segment for the BP: UKMBP_CMS_SGM

Configuration_Gui
de_CR_2016_S4HANA1602_EN.pdf

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