SAP Credit Management Unit Overview We will begin our study of SAP Receivables Management with SAP Credit Management. First, we will study key organizational clements in SAP Credit Management. Then, ‘we will see which fictions are available in SAP Credit Management, and how the ‘components are integrated into logistical processes. Unit Objectives After completing this unit, you will be able to: + Define SAP Credit Management (as part of SAP Receivables Manayernent) + List the current pain points in credit management processes, + Describe how to manage the credit risk (requirements) + List the funetions and features of SAP Credit Management + Explain the (landscape) scenario of centralized credit management + Describe the processes that ate covered by SAP Credit Management + Explain what kind of Credit Manegement data are organized in which way within SAP Business Partner, that is The credit profile for the central storage of data referring to the risk evaluation of 2 customer (internal scoring, risk class, external rating, credit check rule) ‘The organization of credit limits in credit segments, - The possibility of building customer hierarchies using relationships + Explain the integration of SAP Credit Management in R/3 SD and FAR includ "The exposure update in SAP CM by liability information of SD and FEAR = The transfer of payment behavior information from FI-AR to SAP CM (credit vector) ~ The credit check in SD + Deseribe the possibility to enhance the integration with own logie by implementing BAdIs 2018 @ SAP SE or an SAP aifate company, All ighis reserved 13Unit 2: SAP Credit Management Fscoz0 + Explain the use of the credit case forthe electronic processing of eredit limit requests + Describe the way of scoring and credit limit caleulation using formulas and how these can be configured using the formula editor + Describe the functionality and the seope of the checking rule + Explain the concept of building up process chains with credit events + Describe the integration of (moltiple) extemal credit agencies in SAP Credit, Management + Explain the way to use external ratings in the scoring calculation. + Describe the SAP Credit Management reporting and analysis capabilities in the OLTP system like - The creation of early warning lists and analysis of the exposure for one or multiple customers The reporting on the past credit cheeks of a customer + Explain how to use the mass updates for different purposes + Describe how SAP BI can be used for reporting purposes and for scoring caleulation + Expl P BI queries are used within the Credit Manager Portal and how ‘you can add your own BI reports to the credit manager portal n how § Unit Contents Lesson: SAP Credit Management ~ Overview ceoseiieeennee Lesson: Credit Data 23 Exercise 1: SAP Credit Management — Credit Master Data 3a Lesson: Process Integration. cesvennvevseee 39 Exercise 2: SAP Credit Management - Process Integration 47 Lesson: Flexible Enhancement Framework....... “ 75 Lesson: External Credit information... Lesson: Reporting & Mass Change Lesson: Integration of SAP NetWeaver BI and Portal a (© SAP SE or an SAP aifllate company Al rights reserved 2016Fsco20 Lesson: SAP Credit Management ~ Overview Lesson: SAP Credit Management - Overview Lesson Overview This lesson gives an averview of the overall credit management process. It also shows how SAP Credit Management can support parts of these processes using standard functional content, @ Lesson Objectives After completing this le on, you will be able to: + Define SAP Credit Management (ay part of SAP Receivables Management) + List the current pain points in credit management processes + Describe how to manage the credit risk (requirements) + List the funetions and features of SAP Credit Management + Explain the (Landscape) scenario of centralized credit management + Describe the processes that are covered by SAP Credit Management Business Example ‘You want to analyze if'and how SAP Credit Management can help optimize your processes. SAP Credit Management is a component of SAP Receivables Management. ‘SAP Credit Management provides functions for integrating external credit information, scoring, categorizing new and existing ‘customers on the basis of their credit data, and converting this, information into quick credit decisions. ‘SAP Credit Management allows organizations to monitor and control their customer's credit risk in one central system. SAP Credit Management is particularly suitable for handling credit ‘management processes in extremely distributed system landscapes. Figure 10: Definition of SAP Crodit Management 2016 © SAP SE or an SAP afflate compony. Alrighis reserved 15Unit 2: SAP Credit Management Fscoz0 ‘Optimizanion potential 1 Avcrge 080 in wesem Europe: 38 (Seize) ‘Optimizing the cash ow cycle igninirabon Bs. ah) > Utizataaccgprent vend: ct 1 Inet redtmaregenent > Pryme deyee pyres incited dacepetin —\\ 3 Procaceconctaned paper caps 1 naraien tte nooo fr crc Geisers esgreat acess eite | core eae ror eens eae ‘Optimizing the monitoring & * Giiemccccancctasgl eae ete cash tow cyte | TUM ‘argc ntemational cruanialons in ‘waar nave amouty J Siatneseterge mat Optaming ina FSC proceso ay 1 Cormuneaton boson eaee,er faery Revenue ‘ane el foe Shremsang saane eatin — Sac Figure 11: Optimization Potential in Credit Management Processes © Prt om) Po = cos Dotan prainy 1% Lass ommcanates C1448 am ‘ste regncterpett ‘aaa tat 2 Sie rnc ct L emma ‘i teeters a Sales fin €m) Figure 12: Profit Margin versus Sales Organizations with a low profit margin suffer particularly from the default probability of receivables from their deliveries and services @ SAP SE or an SAP affliate company All rights reserved 2015Fsc020 Lesson: SAP Credit Management ~ Overview ‘Compensation for losses on receivables is much more difficult for organizations vwith low profit margins than for organizations with higher profit margins. 0% ery good ‘very poor Figure 13: Probability of Default Defines Hedge c derived from Credit managers often classify their customers in risk elasses, which the customer's score (represents the customer's credit stats). ‘The risk elass dictates how the customer's credit risk is controlled and monitored. It therefore controls the specification of payment conditions, including the allocation ‘of payment targets and provision of collateral 2015 © SAP SE oF an SAP affiliate company. Al ighis reserved 17Unit 2: SAP Credit Management Fscoz0 8 as ‘a > wy © coma OO © 2. % umtomer e aff Figure 14: Customer Sales Versus Credit Risk Possible action for customer A: + Greater use of collateral instruments + Chang payment terms Possible action for (optimal) customer B: + Not use collateral instruments + Improve the customer relationship Possible action for customer C: + Manually control the transaction + Change the dunning procedure + Continually monitor the credit risk Possible action for customer D: + Reduced use of collateral instruments + Decrease the sales prive © SAP SE or an SAP affllate company, ‘All nghts reserved, 2015Fscoz0 Lesson: SAP Credit Management - Overview + Croat tit witzation + Payment history + Sales history as ay Figure 15: Credit Management Process =) or > lmplomontstion of en organization-wide creat paey age Sern rset h ed etecnne fillers este ot cet aptatne t an esuk montaring of ced neopets yer mie -ogonziton of etre ng alton: > omen ond cougmert of ctnernet soe ae ce vee j (EE |= cretttomaton FI Peastentn eruma cot ances UF Arcimanann ec cero tomas BP JB sm: ‘= Credit manager portal 1 Role-based access to ctedt management informetion and analyses Figure 16: Features 2018 (© SAP SE oF on SAP afflste company. All rights reserved 19 ED”Unit : SAP Credit Management Fscoz0 Figure 17: Integration Overview From EhPS, you can SAP Credit Management without needing to install 2 separate server for using SAP NetWeaver Process Orchestration. This option is available not just in a one system landscape but also if you are using central SAP Credit Management in a multiple system landscape. The messages are exchanged using the Web Service Reliable Messauing (WS-RM) log that ensures both the transfer of ‘messages and that they are received in the correct order. The option of @ point to point connection for asynchronous enterprise services is only available for (internal) operations between SAP Credit Management, SAP SD, and SAP FI-AR systems. (© SAP SE or an SAP aifllate company 20 ‘ANI rights reserved, 2015Fsco20 Lesson: SAP Credit Management - Overview 2018 © SAP SE oF an SAP cfflate company, All ights reserved. 21Unit 2: SAP Credit Management. Fscoz0 © Lesson Summary You should now be able to: Define SAP Credit Management (as part of SAP Receivables Management) List the current pain points in eredit management processes Describe how to manage the credit risk (requirements) List the functions and features of SAP Credit Management Explain the (landscape) scenario of Deseribe the processes that are covered by SAP Credit Management alized credit management 22 (© SAP SE or an SAP affiliate company. All rights reserved, 2015Fsco20 :_ Credit Data Lesson: Credit Data o Lesson Overview This lesson describes the organization and storaye of SAP Credit Management master data. Lesson Objectives After completing this lesson, you will be able to: + Explain what kind of Credit Management data are organized in which way within SAP Business Partner, that is: - The credit profile for the central storage of data referring to the risk evaluation of a customer (internal scoring, risk class, external rating, credit check rule) ~ The organization of credit limits in credit segments - The possibility of building customer hierarchies using relationships Business Example To evaluate a customer's credit risk, all credit risk-related data need to be stored and organized in the system. Master Data concept in SAP Credit Management SAP Credit Management uses SAP Business Partner master records to store credit-relevant data, SAP Business Partner (SAP-BP) is the central master data object at SAP representing 1 natural or legal person with whom business relationships can be established. SAP Business Partner contains central, application-neutral data, such as name, address, communication links, and bank details. SAP Business Partner also provides an open infrastructure for linking the application-specific attributes of the business partner. ‘This means that other components (ERP core, industry components, components of development partners, and a customer's-owwn components) can easily include their own application-specific business partner data. 2018 © SAP SE or on SAP afloto company. /l rights reserved. 23Unit : SAP Credit Management Fscoz0 © Cees Cars od ee *2P Type arc Business Partner Roles Figure 19: SAP Business Partner Concept When a business partner is ercated, the business partner category must be sclected (required entry), “Business partner category” is the term used to classify a business partner as natural person (for example, private individual), group, or organization (legal entity or part ofa legal entity, such as a department). The business partner category determines which ficlds are available for data entry. For example, if you wish to create a business partner as an organization, one of the fields requires you to enter the legal form. With a person, you have to enter the first name, name components, gender, and so on. From a business point of view, this link between SAP Business Partner and other components is achieved by way of the role concept. A business partner role corresponds to a business context in Which a business partner can appear. A business partner can have several business partner roles. Possible roles are, for example, a business partner (yeneral), business partner SAP Credit Management, business partner Credit Management, contract partner (FIC), contact person, prospect (potential customer), and 50 on. To control the field status definition (fields on the business partner master record that are mandatory, hidden, displayed, optional), business partner types can be uscd. This allows you, for example, to group business partners according to your own eriteri. To make the business partner available for components which require this master record, you have to replicate all relevant customers from the source system (Accounts Receivables Accounting, and optionally Sales component) To do so, you can use the Customer/Vendor Integration (CVI) of SAP's Master Data Synchronization. 24 (© SAP SE or an SAP aifllate company Al rights reserved 2016Fsco20 © a) Lesson: Credit Data FINBASIS + SAP ECC 60 SAP ECC 60 {erhighery sap (Great Management ran CL__] ‘Aeprcenous et Figure :xample: Master Data distribution and replication using CVI SAP Businoss Partner (Role: Credit Management) ‘General data Rule for scoring and ered mit catcutation ] > CREDIT PROFILE i > Score =--- 4 > Risk Class creat Check rule ‘CREDIT SEGMENT ‘me ‘Main credit segment 0 > Creat mit 2 Total credit exposure > Payment history Credit segment 4 Crodit sogment 2 > Cred iit > Cre mit > Total creat exposure > Total creat exposure > Payment history > Payment history Figure 21: Credit Data ‘The credit data encompesses all business partner data that is necessary for credit risk monitoring of this business partner using the functions of S4P Credit Managemen, ‘The SAP business partner is used in role UKMO00 (BPartner credit management) to store this data in SAP Credit Management. 2018 (© SAP SE or on SAP afleto company. /l rghis reserved, 25Unit 2: SAP Credit Management Fsco20 ‘The credit data consists of credit profile data (credit-relevant data that is generally valid for the business partner) and credit segment data (credit-relevant data that is only valid for the business partner in a particular area (in the credit segment) ‘The eredit profile contains data such as the rule for scoring and credit limit calculation, scoring and, if necessary, extemal valuations of the business partners, the risk category, the checking rate for controlling the credit limit check for the business partner when creating the order, notes and other information on ‘the business partner such as negative characteristies, credit security or collateral. ‘The credit segment data encompasses all data that is necessary for the credit check when accepting a sales order (check of credit limit utilization and other criteria) and the resulting order-related credit decision (decision on order release and terms of payment). ‘Business unit 1 total commitment: € 30,000 Business unit total commitment: € 20,000 000 Main credit segment “Company total commitment € 50,000, Company credit limit: €60,000 000 ‘Business unit 1 total commitment: € 30,000 BUT credit segment usiness unit 1 crect mit: € 35,000 - 2000 Business unit 2 total commitment: €20.000 — ‘BU2 credit segment Business unit 2 credit amit: € 30.000 ‘customizing: Credit segment 1000-+ 2000 TZ) Acatie contribution for main credit segment Figure 22: Credit Segment Concept SAP Credit Management provides the option of maintaining several credit limits for ‘one customer using credit segments (one credit limit for each eredit segment). The credit segment corresponds to one or several credit control areas —a credit control area relates t0 a company code or sales ares, for example, depending on its configuration This credit sement is assigned to a main eredit segment that can be used t0 define total credit limit on company level for the customer in addition to the individual credit limits on “suosegment level” 26 (© SAP SE or an SAP affllate company, All rights reserved, 2015Fsc020 Lesson: Credit Data In the course of the credit limit check (for example creating an order): * The credit limit utilization of the customer in the corresponding credit sezment (customer's credit limit in this credit segment minus customer commitments that are assigned to this credit segment) are checked along with * The credit limit utilization of the customer in the main credit segment (customer credit limit inthe whole company minus commitments of the customer that have acerued in terms of the whole company) (Croan sogment data fora business partner (ta or cecing he crecwortiners ve business areca one debvery Mi {tis crt opment heck ol rd nt uttton cession Payment etry check ‘CREDIT LIMIT AND CONTROL. PAYMENT HISTORY key figures. > Cro iet > Hist cumig ioe 3 Tot eredtexposue Odes open iter Creat nsurnce,colaea Uastpeyment 3 comsttierk Fart gues for penn rey, for ‘ramp, 80 Figure 23: Credit Segment Data When creating an order or delivery for a business partner, the corresponding credit segment data of this business partner is used to check + The current credit limit utilization (credit limit —total credit exposure, including credit insurance, collateral), the manually set credit block (if present) and + The payment history of the business partner The credit segment data thereby forms the basis for the order-related credit decision for this business partner, which includes the release (or not) of the order (or delivery or non-delivery) and the characteristics of the payment and delivery condition including any payment terms (credit). The information on the payment history of the business partner is summarized on the “Payment History Key Figures” tab and contains standard information on the highest dunning level, the oldest open item, the last payment and other key figures, such as the average period outstanding (DSO) or the highest rumover of the customer in the last 12 months, 2015 © SAP SE or an SAP offlate company. Al rights reserved 27Unit 2: SAP Credit Management Fscoz0 © ‘“atigher-Level Credit Management Account of” ‘320,000 € eee com Se ene sos, aE Sz ee Busi (Segment 9000 Iotiehighoriem Credit exportire: 700,000 € eeainanprent Teta erect expo ure: ‘eccunt 7e0,000€ Fscuez Figure 24: Relationships You can maintain relationships between different SAP business partners. In S4P Credit Management, you can use the following relationship types, among others (in each case to be maintained at the eredit segment level) +The relationship types Higher-level Credit Management Account of (FUKMOO1) or Lower-level Credit Management Account of (TUKMOO1) can be used to define customer hierarchies (up to max. 10 hierarchies). The eredit exposure ata of the lower-level credit accounts is added to the total of the respective higher-level credit account + The relationship type ia Credit Management is managed by (TUKMSBO) can be used to assign the responsible credit amalysts (per credit seyment) for the ‘business partner. The credit analyst must also exist as an SAP business partner (person) in the Employee role, + The relationship type is x credit analssi group (TUKMSBG) serves to organize credit analysts in groups (© SAP SE or an SAP aifllate company Al rights reserved 2016Fscoz0 Lesson: Credit Data ‘= Credit data is a component of SAP Credit and is stored in SAP Business Partner. It consis of the credit profile dala and the credit segment data, 1 The credit profil is used for the central storage of customer data relevant for risk assessment (scoring, risk class, external rating, credit check rule} ‘= Credit segments can map various areas of a company (such as sales areas, countries, company codes). They are used for area-specitc ‘administration of credit mits (and their ullzation) and to store information on the payment behaviour ofthe customer. The corresponding credit segment data is used for credit checking when the. Order is created or on delivery within a company area, = By using relationships you have the possibilty of creating customer hierarchies Figure 25: Summary 2018 (© SAP SE oF on SAP afflste company. All rights reserved 29Unit 2: SAP Credit Management Fsco20 © SAP SE or an SAP affilte company. 30 All rights reserved 2015Fsco20 Lesson: Credit Data Exercise 1: SAP Credit Management — Credit Master Data Exercise Objectives After completing this exercise, you will be able to: + Create a credit profile for a customer + Assign a credit limit to @ customer Business Example Credit-relevant master data is maintained and stored in the SAP business partner. This contains the scoring, risk class, and external valuations for the customer, DilTerent credit limits can be assigned to the customer for each credit segment, Task 1: Setting up credit profile data for a business partner 1, First determine the business partner defined in the system with business partner number FSCM##. Display the business partner in the system, 2, Now maintain the eredit profile data, Use the rule for existing private customers, The score should be determined by the system automatically (*Calculate with formula”) Determine the customer’s score. Which risk class is suggested by the system? Now you want to get an overview of what happens to the system data if you fare aware that the business partner has made an affidavit about his assets and ‘you store this data in the system. You have found out that the business partner made an affidavit 7 days ago. Activate the “Affidavit” and have the system calculate the score again. Determine the extent to which the level of the customer's score has ch wed 6, Now remove the “Affidavit” entry and make one or two of the following settings: = Set the region to Baden-Wuerttemberg, Bavaria, Saarland, or Lower Saxony. = Change the oceupation to “0001”. = Change the sex to “Female” Continued on next page 2018 @ SAP SE or an SAP affliate comoany. All rights reserved 31 EyUnit 2: SAP Credit Management. Fscoz0 = Change the date of birth so that the customer is older than 25, - Change the customer’s nationality. Afterwards, calculate the score again. Have your se calculation? is affected the system 7. Now reverse your changes. Caleulate the score again and save the customer data (the score should now be 50 again and the risk class should be “Mediu Default Risk”), Task 2: Setting up credit segment data for a business partner First display the eredit seyment data of the business partner FSCM## (eredit ‘management role) in change mode. Now you want to determine the credit Limit from the main credit segment. Initiate a system calculation for this. How high is the credit limit calculated by the system in the main credit segment? ‘stem, Perform the ‘You want to release the credit Limit calculated by the corresponding action in the system. You are interested in the credit limit of IDES AG. Calculate the credit limit for the credit segment IDES AG. How high is the credit limit calculated by the system in this segment? Now release the credit limit calculated by the system. Save all of the data and exit the master data maintenance area, 32 (© SAP SE or an SAP affiliate company. All rights reserved, 2015Fsco20 Lesson: Credit Data Solution 1: SAP Credit Management - Credit Master Data Task 1: Setting up credit profile data for a business partner 1, rst determine the business partner defined in the system with business partner number FSCM##. Display the business partner in the system. a) Choose SAP Fasy Access: Accounting —> Financial Supply Chain Management —> Credit Management —» Master Data — Business Partner Master Data b) Enter the following values: Field Name or Data Type ‘Value Business Parmer FSCMM# (where #4 is your PC or group number) Choose Enter. The address data for Mr. Felsmanni## who lives in Berlin is displayed. 2. Now maintain the eredit profile data, Use the rule for existing private customers, The score should be determined by the system automatically (“Calculate with formula") a) Now maintain the credit profile data. Use the rule for existing private customers. The score should be determined by the system automatically (Calculate with formula) ‘Switch to the “Credit Profile” tab page and enter the following values. GENERAL DATA Credit Profile Scoring screen Rates| Role for Existing Private Customers Continued on next page 2015 @ SAP SE or an SAP affliate comoany. All rights reserved 33 EyUnit 2: SAP Credit Management Fscoz0 Score Click on the “Cale. with Formula” botton (calculator symbol): the score is calculated automatically by the system Valid To ‘Automatically suggested by the system Risk Class ‘Automatically suggested by the system 3. Determine the customer's a) The score is $0. 4, Which risk class is sugzested by the system? a) The risk class is “Medium Default Risk (C)”. 5. Now you Want to get an overview of what happens to the system data if you are aware that the business partner has made an affidavit about his assets and ‘you store this data in the system, You have found out that the business partner made an affidavit 7 days ago. Activate the “Affidavit” and have the system calculate the score ag Determine the extent to which the level of the customer's score has changed a) On the “Credit Profile” tab, seroll to the creditworthiness data, Set the “Affidavit” checkbox and fll the data field with today’s data minus 7 days. Click again on the “Cale. with Formula” button (“calculatar” symbol) in the Scoring area, The score is calculated again by the system The score is now “0” and the risk class has now changed to “Very High Default Risk (F)”. 6. Now remove the “Affidavit” entry and make one or wo of the following settings: - Set the region to Baden-Wuerttemberg, Bavaria, Saarland, or Lawer Saxony. ~ Change the occupation to "0001". = Change the sex to “Female” = Change the date of birth so that the customer is older than 25, ~ Change the customer's nationality Continued on next page (© SAP SE or an SAP aifllate company Al rights reserved 2016Fsc020 Lesson: Credit Data Afterwards, calculate the score again. Have your settings affected the system caleulai a) Yes. The settings result in an inereased score and eventually also in an increase in risk class. te the score again and save the customer Now reverse your changes. Caleu should be “Medium data (the score should now be 50 again and the risk class Default Risk”. a) The score should be at 50 again and the risk class set to medium default risk (C). Choose Save. Continued on next page 2015 ‘© SAP SE oF an SAP efflate company. Al rights reserved 35Unit 2: SAP Credit Management Fscoz0 Task 2: Setting up credit segment data for a business partner First display the credit segment data of the business pare FSCM## (credit management role) in change mode. Now you want to determine the credit limit from the main credit segment. Initiate a system calculation for this. How high is the credit limit calculated by the system in the main credit segment? a) Choose SAP Fasy Access: Accounting — Financial Supply Chain Management — Credit Management — Master Daia + Business Partner Master Date Enter the following values: Field Name or Data Type Value Business Partner FSCMi# (where Hf is your PC or group number) Display in BP role ‘Credit Mat Business Pat. (UKM000) Choose Enter ‘The address data for Mr, Felsmann‘# who lives in Berlin is displayed. Make sure that you are in the change mode of the master data Click the “Credit Segment Data” button in the application toolbar Enter the following values: Field Name or Data Type ‘Value Credit Segment ‘Main Credit Segment (0000) ‘Now click the “Limit Cale. with Formula” button (calculator symbol) in the “Credit Limit” area on the “Credit Limit and Control” tab. The “Limit Defined” checkbox is set automatically by the system and EUR 100,000 is displayed as the requested amount for today’s date. ‘The credit limit calculated by the system in the main credit segment is therefore BUR 100,000. Continued on next page ‘© SAP SE oF an SAP oflite company. All rights reserved. 2015Fscoz0 Lesson: Credit Data You want to release the credit limit calculated by the system, Perform the corresponding action in the system, a) Release the calculated credit limit by clicking the “Release Limit” button (“urecn” checkmark symbol) ‘The system message “Credit limit increased” appears in the standard toolbar. You are interested in the credit limit of IDES AG, Calculate the credit limit for the credit segment IDES AG. How high is the eredit limit ealeulated by the system in this segment? a) Enter the following values: Field Name or Data Type Value Credit Segment IDES AG (1000) Now click the “Limit Cale, with Formula” button (“caleulator” symbol) in the “Credit Limit” area on the “Credit Limit and Control” tab The “Limit Defined” checkbox is sct automatically by the system and EUR 50,000 is displayed as the requested amount for today’s date. ‘The credit limit calculated by the system in the sub segment 1000 is therefore EUR $0,000, Now rel the credit limit calculated by the system, a) Release the calculated eredit limit by clicking the “Release Limit” button (green checkmark symbol) The sy toolbar. fem message “Credit limit increased” appears in the standard Save all of the data and exit the master data maintenance area. 8) Choose Save (“disk” icon) in the standard toolbar and exit the display by selecting “Back” ("green arrow” symbol) in the standard toolbar 2015 (© SAP SE oF on SAP aflste company. All rights reserved 37Unit 2: SAP Credit Management Fsco20 e Lesson Summary You should now be able to Explain what kind of Credit Management data are organized in which way in SAP Business Partner, that is: = The credit profile for the central storage of data referring to the risk evaluation ofa customer (internal scoring, risk clsss, external rating, credit check rule) = The organization of credit limits in credit segments ~ The possibility of building customer hicrarchies using relationships (© SAP SE or an SAP affllate company, All rights reserved 2015Fsco20 Lesson: Process integration Process Integration Lesson Overview This lesson gives an overview of the integration options of SAP Credit Management with other systems and other processes. © Lesson Objectives After completing this lesson, you will be able to: + Explain the integration of SAP Credit Management in R/3 SD and FI-AR including - The exposure update in SAP CM by liability information of SD and FI-AR = The transfer of payment behavior information from FI-AR to SAP CM (credit vector) = The credit cheek in SD + Describe the possibility to enhance the integration with own logic by implementing BAdIs + Explain the use of the credit case for the clectronic processing of eredit limit requests Business Example ‘The integration of Credit Management with other systems and processes is necessary to allow quick and reliable credit decisions when a customer order is created. 2016 © SAP SE or an SAP afflate company. Al rights reserved. 39 EyUnit 2: SAP Credit Management Fsco20 ‘CREDIT LIMIT AND CONTROL, PAYMENT HISTORY > Cre ait > Wiahest dung level Tota crvet ogpaeui > Oldest pen torn > cre nsurance, > Last payment cotate > Other Hey igre for payment > crea tock istry, such as DSO Figure 26: Updating Credit Segment Data This section examines the underlined component of the B2C scenario in question {private customer scenario). — ‘change ‘change cred. expooure red. expo. cat rod expon. cat. (aor) ee Bag va (Gc Operas | Using Automate ‘We TRANSFER TS Figure 27: Updating Commitment Data ‘When creating a sales order, a delivery, and invoice in the SAP SD system, the corresponding sales commitment data in S4P Credit Management is automatically updated. © SAP SE or an SAP affliate company. 40 All nights reserved. 2018Fsco20 Lesson: Process integration ‘The update of the eredit exposure in SAP Creelit Management according to the data from the SAP accounting system must be triggered manually using a report (UKM_TRANSFER ITEMS). Here, either all FI items that have not yet been transported to S4P Creuit Management (normal mode) or all current FI items (rebuild mode) ate transferred into SAP Credit Management. Note: Updating the credit exposure when a delivery is created in SAP Sales & Distribution is only available as a standard function in SAP Sales & Distribution as of SAP ERP 6.0, Update of ered exposure data: Ec czedexp a,c exp. ea cre exp des oe Figure 28: Payment History Update 2015 © SAP SE or an SAP affiliate company. Al rights reserved. 41: SAP Crodit Management Fsc020 Figure 29: Configuration of the Update ‘The SAP BAdis (Business Add-Ins) BADI_SD_CM and UKM_FILL are used to configure the integration of the SAP Sales system and SAP Financial Accounting. ‘This configuration can be used to derive and calculate specific financial key figures for the update of the payment history in S4P Credit Management. The implementation of the BAdls UKM COMMITMENT. PUSH and. UKM_VECTOR PUSH is not mandatory. The BAdls only requite an implementation, iff there is a change to the commitment record or credit vector. © SAP SE or an SAP aifllate company 42 ‘A rights reserved. 2018Fsco20 Lesson: Process integration Figure 30: Credit Check in SAP Sales 1. When creating or changing the sales order, or creating or changing a delivery of posing @ goods issue, the current risk class of the customer is queried first in SAP Credit Management, 2. ‘The eredit check in S4P Credit Management is ealled, if the automatic credit control in set accordingly in the SAP Sales components. (A corresponding. configuration entry must be present for the credit control area of the current sales document, which is assigned to the credit group of the sales document and the queried risk category) 3. SAP Credit Management conducts the eredit cheek in accordance with the check rule stored in the credit profile and sends the eheck result back to the sales system 4, The credit status of the sales document is set to “blocked” in the event of « negative result (depending on the configuration in the automatic credit control in the SAP Sales component). Using report UKM_LOGS_DISPLAY, itis possible to display a detailed eredit check protocol. The protocol shows every credit checking step for every eredit segment according to the check rule stored in the customer master data. Using DCD (transaction UKM_CASB), it is possible to display and release blocked orders. 5. +6, After the sales document is stored in the database (as released), the commitment is updated correspondingly in SAP Credit Management 2016 © SAP SE or an SAP cffilate company Al its reserved 43 EyUnit 2: SAP Credit Management Fsco20 The credit check is performed synchronously, updating the commitment is asynchronous, ‘structured manner aoross departments. | The credit case is based on SAP Case Management (SCASE). 1 Acredit case contains: © Central customer master data and credit profile ¢ statue ‘¢ Organizational data ¢ Documents ¢ orders 4 Notes ¢ Inbox 1 One credit case can be assigned to several processors Figure 31: Credit Limit Application (Credit Case) © |The credit case is used to process credit limit applications in a ‘The credit case allows organizations to process credit limit applications, which are sent from sales and distribution to the eredit management department, A credit case can trigger a workflow. A credit case can easy be enhanced by customer-specitic fields. credit mit application: © Soorng # Risk class 4 Curent creat iit + Curent liabity “Current cred nit uzalicn in percent (%) @ {= Information transferred automaticaly trom the credit profile tothe = Information to enter manual Sales Person 1 Credit Manager Customer and credit seament Roquired crodt it ‘Aporoved ered iit Expected ses ‘Sue Figure 32: Integration with Credit Profile When a credit limit application is ereated, certain data is imported automatically to the eredit ease from the customer master record (see figure above). (© SAP SE or an SAP affllate company, All rights reserved 2015Fsco20 Lesson: Process integration e oe ‘SD employee creates credit tert farce wail in, aaa eneerctorets enter ‘Cred case retuned wath ‘Dawoes Figure 33: For example, Credit Limit Application with Credit Case commitment dala and ifrmaten onthe customer's payrnlhsiory, ae updaled by SO processes (order entry / deliver bling) and accounting processes (Gosting open tems / balancing open ems). When using SAP sales and ‘counting components, the update can be desorbed as fellons: > iomate wc f Be ret expocur n SAP Cred Managerentwith order ereaion ‘every ating Be SAP ss yt > Rogar updating of he ces exposure and kay gies forthe payment beharcur iy ‘SAP Cre Managment wh Sab format by means Poeun (Gad Taste TEMG & Unda TRANSPL. VECTOR) |= Aspar ofthe credit check, when entering or changing an order, entering or changing 2 devery or when posting goods Issue nthe sales system iis possible to check online the credit Kt utlzation, the payment behaviour and any blocks present forthe customer in SAP Credit Management. Depending onthe check ‘osu, the cretslatus of ho sales document can be sat to feicased or blocked. |= Credit imit requests can bo strustured electronically and provossed ina cross ‘department way using SAP Credit Case, © |= The cre segment data in SAP Cred Management, particule he Figure ‘Summary 2015 © SAP SE or an SAP afflate compeny. Allrighis reserved 45 Syq Unit 2: SAP Credit Management. Fsco20 © SAP SE or an SAP affiliate company 46 All rights reserved. 2015Fsco20 Losson: Process Integration Exercise 2: SAP Credit Management - Process Integration Exercise Objectives After completing this exercise, you will be able to ‘+ Transfer the financial aecounting information for a customer regarding open items (update commitment) and key figures for payment history to SAP Credit Management + Check the results of the credit check for incoming orders and release blocked orders + Understand and perform updates of liability information in SAP Credit Management from the SAP sales component and SAP financial accounting Business Example Credit-relevant master data is maintained and stored in the SAP business partner. This includes the scoring, risk class, and external valuations for the customer. Different credit limits can be assigned to the customer for each credit segment. Task ‘Transferrin; Management liability data from the financial -counting system to SAP Credit 1. First, you would like to ensure whether liability data has already been updated from the sales or financial accounting systems in the business partner FSCM## ‘you have created in SAP Credit Management. You check this in the master record for your business partner FSCM 2. Now you would like to get an overview of what liabilities and payables are already present (open items + credit notes) for the business partner FSCM## in company code 1000, (Business partner FSCM## corresponds t0 customer FSCM#) ‘Check this using the line item display of SAP Accounts Receivable Accounting. What is the amount of the financial obligation (balance) of the business partner ‘as shown in the item line display? Continued on next page 2015 © SAP SE or an SAP afflate compony. Alrighis reserved 47Unit 2: SAP Credit Management Fsco20 3. Now you would like to apply the liability data from accounts receivable accounting (only the data for your customer FSCM##!) in the business partner data in Credit Management. Use a suitable report for this, First eonduct a test rin and have the details displayed in an outpat lst. Check the items that are displayed in the output list. Do the items to be sent in the output list correspond with the items shown in the aecounts receivable accounting line item display? Now start the report as an update ran. 4. Check the updated liability data in the credit segment data of your business partner FSCM## for credit segment 1000. Does the updated amount from credit segment 1000 in the “Total Cr. Expo.” field correspond with the balance transferred from company code from accounts receivable accounting? Using the information button, display the individual items which make up the total credit exposure Task 2: ‘Transferring the payment behavior key figures to SAP Credit Management 1. Inthe business partner FSCM## you have ereated in SAP Credit Man no payment behavior key figures have been updated from the finance s) You check this in the master record for your business partner FSCM## in the data for credit segment 1000. 2. Check the line item display of your customer FSCM## in SAP Financial Accounting again, What information can be gleaned from the display with regard to the payment history of your customer? What is the oldest open item (document number, amount, duc date)? What was the last payment of the customer (document number, amount, due date)? Use a report (for updating the payment behavior key figures) to transfer the key figures of the payment history from accounts receivable accounting to the business partner data in SAP Credit Management (only the data for your customer FSCM##!). First, conduct a test ran and have the details displayed in an output I Continued on nest page © SAP SE of an SAP atfliate company. ‘All rights reserved 2015Fsco20 Losson: Process Integration Check the data that is displayed in the output list, Does the data correspond to the information you received in the line item display of aceounts receivable accounting? Now start the report as an update run 4, Now check the updated payment behavior key figures in the cred of your business partner for credit segment 1000. went data Does the updated data, for example, the oldest open item and the last payment correspond with the data transferred from accounts receivable accounting? Task 3: Credit check using SAP Credit Management when entering a sales order in the SAP sales components ‘When entering a sales orccr in the SAP sales accounting, a credit check (credit limit check and check of other credit-relevant data) is conducted automatically by SAP Credit Management, In the event of negative check result, a warning messaye can be ‘oatpat and the order blocked. 1, The credit check is performed using the check rule stored in the SAP business partner. In the eredit profile data of your business partner FSCM## (role Credit ‘Mgt Business Part), store the standard check rule according to Which all check steps are active and a static credit limit cheek is performed Your customer FSCM§# orders a monitor from you today (material M-12). In the SAP sales system, create a cross-division standard order within the Frankfurt sales organization for your business partner who has been specified as the end customer with the following dat = Sold-to party FSCM# ~ Purchase order number: 0SO708%i# = Por e order data: today’s date ~ Requested delivery date: today's date = Material: Me12 ~ Order quantity: 1 Save your entries using the button in the standard toolbar. ‘When saving the order, the credit check is run automatically in SAP Credit Management. The block you set in the eredit master data of the customer results in a negative check result. This result is displayed by a system message. Continued on next page 2015 © SAP SE or an SAP afflate compony. Alrighis reserved 49 EyUnit 2: SAP Credit Management Fsco20 Confirm the system message with “Enter”, The status bar shows the message standard order xy has been saved” Note the order number Navigate within the display of the sales order you ervated to the status data of the order via Goro > Healer > Status. ‘What is the credit status of the order? Is the order blocked for further processing? ‘As an employee of a credit department you wish to gain an overview of the credit checks that have resulted in a negative check result today. Check the sales documents for your customer FSCM#4 in credit segment 1000 which has been blocked due to'a negative eredit check result. Display the credit management data for your customer FSCM# and check if 1 corresponding commitment has been updated for your customer in credit segment 1000 in the (blocked) order you created. Using the Documented Credit Decision, got an overview of process-related data and release the sales document manually. [Now display your “released” order again and check the status of your order again what is the credit and overall block status of your order now? “The manual release ofthe order in the SAP sales component has resulted in an update of the (gross) order value of the corresponding liability value for the customer FSCM## in SAP Credit Management. Display the “Total Cr. Expo.’ file and the liability detsils inthe segment data for eredit segment 1000 of your customer FSCM## and check the liability update. Which credit exposure category does the created order have in the liability data in SAP Credit Management? Continued on next page (© SAP SE or an SAP affllate company, All rights reserved 2015Fscoz0 Lesson: Process Integration Task Delivery and billing of the sales order To bill the customer, the ordered goods must be taken from the warchouse, packaged, and checked out of the warehouse and dispatched. ‘The resulting billing in the SAP system is aecompanied by an automatic transfer into financial accounting (generation of corresponding open item). ‘These actions trigger a corresponding change in the eredit exposure category for ‘your order (until now credit exposure category: “100 ~ Open Orders") in SAP Credit, Management. 1. The material ordered by the customer is to be shipped from the shipping point in Dresden. Create an outbound delivery with a reference to your sales order. Save the delivery with the data suggested by the system by using the button in the system toolbar. The status bar shows the message “Delivery xy has been saved.” Note the number of the delivery The material ordered by the customer must now be removed from the warehouse in Dresden (warehouse number 012) before it is packaged and can leave the warehouse. Create a transfer order with a reference to the delivery you created Save the transfer order with the data suggested by the system by using the button in the system toolbar. The status bar shows the message “Transfer order XY created” Note the number of the transfer order 3. Now the onder to be delivered can be packed and shipped. To do this, change the outbound delivery that you created (using the delivery number you noted), Check if the material for your delivery has been taken correctly from the ‘warehouse. In the menu, choose Edit + Pack and package your material with packaging material “T-ZS401 After saving the delivery, you are returned to the initial sereen for changing, deliveries. Click the “Post Goods Issue” button, 5. Display the detail view of the liability data of your customer FSCM## in credit segment 1000. Which credit exposure category does the order of your customer have in SAP Credit Management? Continued on next page 2015 (© SAP SE oF on SAP aflste company. All rights reserved 51 EyUnit 2: SAP Credit Management Fsco20 6. After your delivery has left the warehouse, an invoice must be created for creating @ corresponding billing document, When creating the invoice, confirm the data suggested by the system and save your entries, Which credit exposure category does the order of your customer have in SAP Credit Management? ‘When billing your order, an open item is automatically ereated for the invoice in SAP Financial Accounting. Display your order and navigate tothe display of the follow-on document using Environment > Display document flow Note the document number and the amount of the generated open item. Display all open items for your customer FSCM## in SAP Accounts Receivable Accounting. Does the list of open items contain the open items zenerated by the system for your order? ‘The liability information for the order of your customer PSCM## is forwarded by the billing for the order and the generation of an open item from the SAP sales ‘component to SAP Financial Accounting, Unlike the liability data from the SAP sales component, the liability information from SAP Financial Accounting is periodically transferred to SAP Credit Management using a report, Inthe same way as in task 1(e) transfer the ability data from SAP Financial Accounting to SAP Credit Management and check the liability data of your customer in SAP Credit Management. Which credit exposure category docs the order of your customer have in SAP Credit Management? © SAP SE of an SAP atfliate company. ‘All rights reserved 2015Fsco20 Lesson: Process Integration Solution 2: SAP Credit Management - Process Integration liability data from the financial accounting system to SAP Credit Management 1, First, you would like to ensure whether liability data has already been updated from the sales or financial accounting systems in the business partner FSCM## ‘you have created in SAP Credit Management. You check this in the master record for your business partner FSC a) Choose S4P Easy Access —+ Accounting —» Financial Supply Chain Management — Credit Management —> Master Data — Business Partner Master Data Enter the following values: Ficld Name or Data Type Value Business Partner FSCM4# (where # is your PC or group number) Choose Fnier. The data for your business partner FSCM## is displayed. Click the Credit Segment Data button at the top right of the sercen. Enter the following values: Field Name or Data Type Value Credit Segment Main Credit Segment (0000) Go to the “Credit Limit and Controf” tab page. In the “Total Cr. Expo.” field a value of 0,00 is displayed ~ no liability data from the sales / finance systems of the company has been updated to SAP Credit Management, Now you would like to get an overview of what liabilities and payables are already present (open items + credit notes) for the business partner FSCM## in company code L000. (Business partner FSCM*# corresponds to customer FSCM#i.) Check this using the line item display of SAP Accounts Receivable Accounting. Continued on next page 2018 © SAP SE or on SAP afloto company. /l rights reserved. 53Unit 2: SAP Credit Management Fscoz0 ‘What is the amount of the financial obligation (balance) of the business partner as shown in the item Tine display? a) Choose SAP Easy Access —> Accounting — Financial Accounting —sAccounts Receivable —+ Account — Display/Change Line ems Enter the following values: Field Name or Data Type ‘Value Customer account FSCM## (where ## is your PC or group number) Company code 1000 ‘Open items X_ Select option Open at key date ‘Current date Choose Execute @. What is the amount of the financial obligation (balance) of the business partner as shown in the item line display? The business partner's balanee is EUR 1,710.00. 3. Now you would like to apply the liability data from accounts receivable accounting (only the data for your eustomer FSCM#!) in the business partner data in Credit Management, Use a suitable report for this. First conduct a test rnin and have the details displayed in an output ist Check the ifems that are displayed in the output list. Do the items to be sent in the output list correspond with the items shown in the accounts receivable ‘accounting line item display? Now start the report as an update run, a) Choose SAP Easy Access Accounting + Financial Supply Chain Management -+ Credit Management + Integration of Credit Management with FEAR — Asynchronous Liability Update (On the screen Create AT Messages for Credit Exposure Update in Credit Management, please enter the following values: Field Name or Data Type Value No_ of Does per XT Message 1.000 Continued on next page ‘© SAP SE oF an SAP oflite company. All rights reserved. 2015Fscoz0 Lesson: Process Integration Field Name or Data Type Value Tesi Run — No Sera X_— Select option ‘Company Code 7000 Customer SCM Output Details X_— Select option In the Rebuild Colleciive Table from Open Items area, enter the following: Field Name or Data Type. Value ‘Start Rebuild X= Select option ‘Company Code 1000 Customer PSCMa# Choose Execure ®, Check the items that are displayed in the output list. Do the items to be sent in the output list correspond to the items shown in the accounts receivable accounting line item display” Yes, exactly the same items are selected and displayed. A check can also be performed by totaling the individual commitment amounts (highlight the Liabilities column and select the Total icon in the system toolbar) ~ the total corresponds to the previously determined balance of EUR 1,710.00. ‘Now start the report as an update run. Now go Back to the report entry screen and remove the checkmark at Test Run — No Send. ‘This turns the next start of the program into an update run Choose Execute @. Cheek the updated liability data in the credit segment data of your bus partner FSCM## for credit segment 1000. Continued on next page 2015 © SAP SE oF an SAP affiote compary. All nghts reserved 55Unit 2: SAP Credit Management. Fsco20 Does the updated amount from credit segment 1000 in the “Total Cr. Expo.” field correspond with the balance transferred from company code from accounts, receivable accounting? Using the information button, display the individual items which make up the total credit exposure. a) Management —» Credit Management Master Dato. Enter the following values: Choose SAP Easy Access > Account ling —> Financial Supply Chain > Master Data Business Partner Field Name or Data Type Value Business Partner FSCM#i (where ## is your PC or group number) ‘Choose Enter. The data for your busi the following valves Click the Credit Segment Data button at the top right of the screen. Enter iness partner ESCM is displayed, Field Name or Data Type ‘Value Credit Segment IDES AG (1000) Go to the Credit Limit and Conirol tal displayed in the Total Cr. Expo. field Docs the updated amount from credit ib paye. An amount of 1,710.00 is segment 1000 in the Total Cr. Expo, field correspond to the balance transferred from company code from accounts receivable accounting? Display the individual items which make up the total liability. ‘Yes, the total credit exposure correspo EUR 1,710. For a detailed view of the individual onds to the business partner balance of items of the total liability, choose the Dive information button Display Liabiltiy on the tight next to the Total Cr Expo. field and double-click the displ Open Items jrom FI. layed liability total with the category Continued on next page © SAP SE or an SAP afllate company All rights reserved, 56 v 2015Fscoz0 Lesson: Process Integration Task ‘Transferring the payment behavior key figures to SAP Credit Manageme 1, Inthe business partner FSCM## you have created in SAP Credit Management, no payment behavior key figures have been updated from the finance system, You check this in the master record for your business partner FSCM## in the data for credit segment 1000, 8) Choose SAP Easy Access —» Accounting -+ Financial Supply Chain Management Credit Management — Master Data — Business Partner Master Data. Enter the following values: Ficld Name or Data Type Value Business Pariner SCM (where ## is your PC or group number) Choose Enter. The data for your business partner FSCM## is displayed. Click the Credit Segment Data button at the top right of the screen. Enter the following values: Field Name or Data Type Value Credit Segment IDES AG (1000) Go to the Payment Behavior Key Figures tab page. The flelds are not filled. 2. Cheek the line item display of your customer FSCM## in SAP Financial Accounting ayain, What information can be gleaned from the display with regard to the payment history of your customer? What is the oldest open item (document number, amount, due date)? ‘What was the last payment of the customer (document number, amount, due date)? Continued on next page 2015 ‘© SAP SE or an SAP affiiale company. All rights reserved 57Unit 2: SAP Credit Management Fscoz0 8) Choose SAP Easy Access Accounting — Financial Accounting Accounts Receivable + Account + Display/Change Line Items Enter the following values: Ficld Name or Data Type Value ‘Customer account FSC (where # is your PC or group number) Company Code 1000 All items X ~ Select option Open at key date Current date Choose Erveue ‘What is the oldest open item (document number, amount, due date)? Check receivables only. Document number: sce document number fickd, amount = FUR 220, duc date = around 70 days ago ‘What was the last payment of the customer (document number, amount, due date)? Document number: se document number field, amount = BUR 350, document date = around 60 days ago Use a report (for updating the payment behavior key figures) to transfer the key figures of the payment history from accounts receivable accounting to the bussiness pariner data in SAP Credit Management (only the data for your customer FSCM##!), First, conduct a test run and have the details displayed in an output list, Chock the data that is displayed in the output list. Does the data correspond to the information you received in the line item display of accounts receivable ecounting? Continued on next page © SAP SE or an SAP affllate company, ‘All nghts reserved, 2015Fsc020 Lesson: Process Integration Now start the report as an update run 8) Choose SAP Rasy Access > Accounting > Financial Supply Chain Management — Credit Management — Integration of Credit Management with FAR + Update Key Figures for Payment History On the Send Payment Behavior Summary screen, enter the following values: Field Name or Data Type ue ‘No. of Does por XI Message 1,000 Test Run No Sond selected Company Code 1000 Casiomer ESCM Oupput Details X- Select option In the Rebuild Collective Table from Open Irems area, enter the following: Field Name or Data Type Value Start Rebuild X = Select option Company Code 1000 Customer SCM Choose Freeuie Check the data that is displayed in the output list: Does the data correspond to the information you received in the Line item display of accounts receivable accounting? Yes. Now start the report as an update rin, Now go Back to the report entry screen and remove the checkmark at Test Run — No Send. This turns the next start of the program into an update run. Choose Ereeue @, 4, Now check the updated payment behavior key figures in the credit segment data of your business partner for credit segment 1000. Continued on next page 2015 © SAP SE or an SAP afilate company. All righis reserved 59 ESUnit 2: SAP Credit Management Fscoz0 Does the updated data, for example, the oldest open item and the last payment correspond with the data transferred from accounts receivable accounting? 8) Choose SAP Easy Access + Accounting — Financial Supply Chain Management —> Credit Management —» Master Data — Business Partner’ Master Data. Enter the following values: Field Name or Data Type Value Business Partner FSCM# (where ## is your PC or group number) Choose Enter. The data for your business partner FSCMiH is displayed, Click the Credit Segment Data bution at the top right of the screen, Enter the following values: Field Name or Data Type Value (Credit Segment IDES AG (1000) Go to the Payment Behavior Key Figures tab page, The fields are now filled. Does the updated data, for example, the oldest open item and the last payment correspond to the data transferred from accounts receivable ‘accounting? Yes, Task 3: Credit check using SAP Credit Management when entering a sales order in the SAP sales components Continued on next page © SAP SE or an SAP affllate company, ‘All nghts reserved, 2015Fsco20 Lesson: Process Integration ‘When entering a sales order in the SAP sales accounting, a credit check (credit limit check and check of other credit-relevant data) is conducted automatically by SAP Credit Management, In the event of « negative check result, a warning message can be output and the order blocked ‘The credit cheek is performed using the check rule stored in the SAP business partner. In the credit profile data of your business partner FSCM## (role Credit ‘Mgt Business Part.), store the standard check rule according to which all cheek steps are active and a static eredit limit check is performed. a) Choose SAP Basy Access + Accounting — Financial Supply Chain Management + Credit Managemen! > Master Data — Business Partner Master Data. (Open business partner FSCM## in change mode (role Credit Mgt Business Part.) b) Ifyou are not already in the general data, click the General Data button in the application toolbar and go to the Credit Profile tb. Enter the following values: Field Name or Data Type ‘Value Check Rule (1 Default — All Checks Active (Stat. Credit Limity Save your entries using the Save (isk) button in the standard toolbar 2. Your customer FSCM## orders a monitor from you today (material M-12). In the SAP sales system, create « cross-division standard order within the Frankfurt sales organization for your business partner who has been specified as the end customer with the following dat: - Sold-to party FSCM#H# ~ Purchase order number: 050708#% ~ Purchase order data: today’s date date - Requested delivery date: today = Material: M-12 = Order quantity: 1 Save your entries using the button in the standard toolbar, Continued on next page 2018 © SAP SE oF an SAP cfflate company, All ights reserved. 61Unit 2: SAP Credit Management. Fsco20 ‘When saving the order, the eredit check is run automatically in SAP Credit Man: rent. The block you set in the credit master data of the customer results, in a negative check result, This result is displayed by a system message. Confirm the system message with “Enter”, The status bar shows the message “Standard order xy has been saved” Note the order number a) Choose SAP Easy Access + Logistics — Sales and! Distribution — Sales > Onler + Create (VAD). Creating a Sales Order: Initial Sereen Onler Type OR (standard order) Sales Organization 1000) Distribution Channel 10 Division 00 ‘Choose Enter. Creating a Rush Order: Ov Solu-to party ESCM PO Number 05070844 PO dare Today “All items” area “Sales” tab) Rey. deliv date Today (day format) Material M12 Onder Quantity ‘Choose Enter and confirm the sys change: billing date rescheduled.”) with Ener Save your entries using the button in the standard toolbar. stem message displayed (“Billing schedule Continued on next page ay © SAP SE or an SAP afilate company 62 All rights reserved. 2015Fscoz0 Lesson: Process Integration ‘When saving the order, the credit check is ran automatically in SAP Credit Management, “Among others, the system checks the payment behavior key figure (DSO), which leads to a negative check result. This result is displayed by a system message: Confirm the system message with Enter. The status bar shows the message “Standard order XY has been saved” Note the order number Navigate within the display of the sales order you created to the status data of the order via Goto —+ Header — Status. ‘What is the credit status of the order? Is the order blocked for further processing? a) ») Choose S4P Fasy Access > Logistics — Sales and Distribution > Sales + Onter —+ Display (VA03) ‘The system proposes the order number of your order (alternatively: enter the order number you noted). Choose Enter, From the SAP menu now choose: Goto —> Header — Status. The Processing status area contains information on the credit status and the overall block status. ‘What is the credit status of the order? The credit status “Not approved” is displayed. Is the order blocked for further processing? Yes, the order has been blocked for further processing. The overall block status “Blocked” is displayed. Continued on next page 2018 {© SAP SE or an SAP afllste company. All rights reserved 63q Unit 2: SAP Credit Management. Fsco20 4, As an employee of @ credit department you wish fo gain an overview of the ‘credit checks that have resulted in a negative check result today. Check the sales documents for your customer FSCM#é in credit segment 1000 whieh has been blocked due to a negative credit check result, a) Choose SAP Easy Access — Accounting > Financial Supply Chain Management — Credit Management —- Documented Credit Decisions > Cases in SAP Credit Management (UKM_CASE) On the left side (organizer area), choose SAP Credit Management ~ Creit Case ~> Cases —+ Documented Credit Decision ~ Search b) Inthe Case Search arva, enter the following values: Field name or Data Type Value Business Partner FSCMM (## corresponds to your group number) Credit Segment 1000) Press Search button, ©) In the lower area, the hit list shows all Documented Credit Decisions (DCD's) for search parameters used. Open the object (by double-clicking the entry) which corresponds to the sales order blocked in previous steps (compare the document number in the field Number of Document with Credit Block Which check step caused the negative check result? To display the Credit Check log, choose the appropriate function button In this case the DSO greater than 60 days that you set for the business partner caused the overall negative check result Continued on nexi page 64 © SAP SE or an SAP affliate company. Al nights reserved, 2015Fsco20 6 Lesson: Process Integration Display the credit management data for your customer FSCMt# and check if « corresponding commitment has been updated for your customer in credit segment 1000 in the (blocked) order you created. a) Inthe DCD, chose the button Business Partner. At this, use the Credit Segment option, On Credit Segment level of the SAP Business Partner, Click the Credit Limit and Control tab page. The value in the Total Cr. Expo. field in the Credit Limit area has not changed the value of the order you created has not been updated to the liability data of your customer in SAP Credit Management, as the order has the status "blocked" in the SAP sales component. In addition, also check if there have been any changes in the control data in credit segment 1000 of your customer FSCM##. ‘The block of the order you created causes the Special Attention flag (Control area) to be set automatically in the credit management data of your customer FSCM##; this flag can now also be used asa selection criterion in the reports of SAP Credit Management Using the Documented Credit Decision, yet an overview of process-related data and release the sales document manually 8) Use the following navigation options to get an overview of credit data: + Use the function button Business Pariner to drill down to credit account of the customer in question or to the connected credit account (favailable) + Use the Credit Limit Request button to drill down to an active Credit Limit Request for Business Partner in Credit Segment (if available) + Use the Linked Objects area to drill down to the blocked sales document b) To release the sales order, use the function bution Sales Document, Choose the Release function from the ment ©) Ifyou receive the warning message “Credit Analyst FSCM should perform the release”, confirm clicking Enier. d) After the successful release you will get the message “Document XY has been released”. Confirm the message (click Enter), ©) Exit this display with clicking the “green arrow” symbol in the menu bar, until you are in the SAP Easy Access ment again. Continued on next page 2015 ‘© SAP SE or an SAP afffate company, Al ight reserved 65 7Unit 2: SAP Credit Management Fscnz0 7. Now display your “released” order again end check the status of your order again — what i the credit and overall block status of your order now? 8) Choose SAP Easy Access + Logisties — Sales and Distribution — Sales = Onler + Display (VA03) ‘The system proposes the order number of your order (alternatively: enter the order number you noted). Choose Enter b) From the SAP menu now choose: Goto —+ Header —+ Stanus, The credit status is now “Released”, the overall block status reads “Not blocked”, 8. The manual release of the order in the SAP sales component has resulted in an update of the (gross) order value of the corresponding liability value for the customer FSCMf## in SAP Credit Management. Display the “Total Cr. Expo.” field and the liability details in the segment data for credit segment 1000 of your customer FSCM## and check the liability update. Which credit exposure category does the created order have in the liability data in SAP Credit Management? a) Choose SAP Busy Access — Accounting — Financial Supply Chain Management > Credit Management > Master Data > Business Partner Master Dara Enter the following values: Field Name or Data Type Value Business Partner FSCM## (where ## is your PC or roup number) Display in BP role ‘Credit Mgt Business Part (UKM000) Choose Enter. b) Click the Credit Segment Data button in the application toolbar. Enter the following values: Field Name or Data Type Value Continued on next page (© SAP SE oF an SAP atfilate company, All rights reserved. 2015Fsco20 Lesson: Process integration Field Name or Data Type Value Credit Segment IDES AG (1000) Click the Credit Limit and Control tab page. ‘The total amount of the liability (Total Cr- Expo. ficld) is displayed in the Credit Limit arca. This total amount is increased by its gross value when the sales order is released. On the right, next to this field there is a blue information button, which leads to a detail display of the Liability data. Which credit exposure category does the created order have in the liability data in SAP Credit Management? ‘The order value has been transferred online with credit exposure category “100 — Open Orders” to SAP Credit Management. Task 4: Delivery and billing of the sales order ‘To bill the customer, the ordered goods must be taken from the warehouse, packaged, and checked out of the warehouse and dispatched. The resulting billing in the SAP system is accompanied by an automatic transfer into financial accounting (generation of a corresponding open item). ‘These actions trigger 2 corresponding change in the eredit exposure eategory for your order (until now credit exposure category: “100 ~ Open Orders”) in SAP Credit, ‘Management. 1. ‘The material ordered by the customer is to be shipped from the shipping point in Dresden. Create an outbound delivery with a reference to your sales order, Save the delivery with the data suggested by the system by using the button in the system toolbar. The status bar shows the message “Delivery xy has been saved.” Continued on next page 2016 © SAP SE or an SAP afflate company. Al rights reserved. 67 EyUnit 2: SAP Credit Management Fsco20 Note the number of the delivery’ a) Choose SAP Easy Access —> Logistics —» Sales and Distribution > Shipping and Transportation + Outbound Delivery — Create — Single Document — With Reference to Sales Order (VLOIN) ‘Create an Outbound Delivery Order Reference ( sercen) Shipping point 1200 (shipping point in Dresden) Selection date ‘Today (automatically proposed by the system) Order ‘Number of the order you ereated (may already have been suggested by the system) Choose Enter, Save the delivery with the dota suggested by the system by using the button in the system toolbar. The status bar shows the message “Delivery xy has been saved” Note the number of the delivery 2. ‘The material ordered by the customer must now be removed from the warchouse in Dresden (warehouse number 012) before itis packaged and can leave the ‘warehouse. Create a transfer order with a reference to the delivery you created Save the transfer order with the data suggested by the system by using the bbutton in the system toolbar. The status bar shows the messaue Transfer order XY created” Note the number of the transfer order a) Choose SAP Easy Access —> Logistics > Sales and Distribution > Shipping and Transportation — Picking — Create Transfer Order > Single Document (LT03). Create Transfer Order for Delivery (initial screen) Continued on next page (© SAP SE or an SAP affllate company, All rights reserved 2015Fsco20 Lesson: Process Integration ‘Create Transfer Order for Delivery (initial sereen) Warchouse Number (012 (Dresden) Delivery ‘Number ofthe delivery you ereated (ay already have been suggested by the system) ‘Control Do not change the data suggested by the system. Choose Enter Save the transfer order with the data suggested by the system by using the button in the system toolbar. The status bar shows the message “Transfer order XY created.” Note the number of the transfer order Now the order to be delivered ean be packed and shipped. To do this, change the outbound delivery that you created (using the delivery number you noted) Cheek if the material for your delivery has been taken correctly from the warehouse. Tn the menu, choose Eu + Pack and package your material with packaging material “P-ZS401” a) Choose SAP Easy Access —> Logisties —> Sales and Distribution —> Shipping and Transportation + Pack —+ Outbound Delivery (VLO2N). ‘Change Outbound Delivery initial sereen) ‘Outhound Delivery ‘Number of the delivery (may already have been suggested by the system) Choose Enter b) Goto the “Picking” tab paye to check the picked quantity (= delivery quantity). The stock removal was entered when you created the transport order. ©) In the menu choose Euit + Pack. On the next screen, enter the following values on the Pack Material tab: Continued on next page 2018 © SAP SE oF an SAP cfflate company, All ights reserved. 69Unit 2: SAP Credit Management Fscoz0 4 Field Name or Data Type ‘Value Packaging Material T-ZS401 Choose Enter. Select the handling unit generated for the specified packaging material in the top area of the screen AND your material to be packaged in the bottom, area of the screen and choose Falit + Pack —+ Pack. The system message “Material has been packed”. appears. Save your data, After saving the delivery, you are returned to the initial screen for changing, deliveries. Click the "Post Goods Isste” button. ao Display the detail view of the liability data of your customer FSCM®# in eredit segment 1000. Which credit exposure category does the order of your customer have in SAP Credit Management? 8) Choose S4P Fasy Access —+ Accounting —+ Financial Supply Chain Management — Credit Management —» Master Data —> Business Partner Master Data Enter the following values: Field Name or Data Type Value Business Partner FSCM## (where #4 is your PC or group number) Display in BP role (Credit Mgt Busi (UKM000) Choose Enter. Click the Credit Segment Data button in the application toolbar. Enter the following values: Continued on next page (© SAP SE or an SAP aifllate company Al rights reserved 2016Fsco20 Lesson: Process Integration Field Name or Data Type Value Credit Segment IDES AG (1000) b) Click the Credit Limit anc! Control tab page. Use the blue information button on the right of the Toral Cr: Expo. field to display the detail view of the liability data for the customer SCM. Which credit exposure cateuory does the order of your customer have in SAP Credit Management? The order value is moved online within SAP Credit Management from credit exposure category “100 — Open Orders” to credit exposure category “400 ~ Delivery Value’ 6. After your delivery has left the warehouse, an invoice must be created for creating a corresponding billing document. When creating the invoice, confirm the data suggested by the system and save your entries. Which credit exposure category does the order of your customer have in SAP Credit Management? a) Choose SAP Fasy Access —» Logistics Sales and! Distribution —>Billing = Billing Document + Create (VFOI) In the Docs 10 be processed area, your delivery has already been suggested by the system in the Document field (otherwise, enter the number of your delivery that you noted in this field), Choose Enter, The billing data is suggested by the system. Save the invoice and record the document number. b) Which credit exposure category does the order of your customer have in SAP Credit Management? The order value is moved online within SAP Credit Management from credit exposure category “400 — Delivery Value” to credit exposure category “500 — Billing Valu 7. When billing your order, an open item is automatically created for the invoice in SAP Financial Accounting. Display your order and navigate to the display of the follow-on document using Environment — Display document flow. Continued on next page 2018 © SAP SE oF an SAP cfflate company, All ights reserved. 7Unit 2: SAP Credit Management Fscoz0 Note the document number ‘and the amount ofthe enerated open iter a) Chonse SAP Easy Access ~> Logistics + Sales and Distribution — Sales and Disiribution — Sales + Order —» Display (VAO3). b) Enter your order number and choose Futer. Navigate in the menu to the display of the follow-on document for the order Environment —+ Display document flow ‘Note the document number and the amount of the generated open item. Double-click the accounting document. Note the document number (Doc no. field) and the amount (Ref. value field), §. Display all open items for your customer FSCM# in SAP Accounts Receivable Accounting. Does the list of open items contain the oper your order’? ss generated by the system for a) Choose S4P Easy Access —+ Accounting — Financial Accounting Accounts Receivable — Account + Display/Change Line Items b) Enter the following values: Field Name or Data Type ‘Value Customer account FSCMt# (where ## is your PC or group number) Company cole 1000 Open items Select Open at kev date ‘Current date’ Choose Execute D, Does the list of open items contain the open items generated by the system for your order? ‘Yes. The noted document is in the display. Continued on next page (© SAP SE or an SAP aifllate company Al rights reserved 2016Fsco20 Lesson: Process Integration 9. The liability information for the order of your customer FSCM## is forwarded by the billing for the order and the generation of an open item from the SAP sales component to SAP Financial Accounting. Unlike the liability data from the SAP sales component, the liability information from SAP Financial Accounting is periodically transferzed to SAP Credit Management using a report. In the same ‘way as in task 1(c) transfer the liability data from SAP Financial Accounting to SAP Credit Management and check the liability data of your customer in SAP Credit Management. Which credit exposure category does the order of your customer have in SAP Credit Management? a) The order value is transferred within SAP Credit Management by the report you started from SAP Financial Accounting for credit exposure update for credit exposure category "500 — Billing Value” to eredit exposure category 100 ~ Open Htems from FP” 2018 © SAP SE oF an SAP cfflate company, All ights reserved. 73Unit 2: SAP Credit Management Fscoz0 @ Lesson Summary ‘You should now be able to: + Explain the integration of SAP Credit Management in R/3 SD and FI-AR including - The exposure update in SAP CM by liability information of SD and FI-AR, - The transfer of payment behavior information from FI-AR to SAP CM (credit vector) - The credit check in SD + Describe the possibility to enhance the implementing BAdIs + Explain the use of the eredit case for the electronic processing of eredit limit requests tegration with own logic by (© SAP SE or an SAP aifllate company Al rights reserved 2016Fsc020 Lesson: Floxit Enhancement Framework Flexible Enhancement Framework Lesson Overview This lesson gives you an overview of the possibilities to optimize the credit management process and to adjust it to eustomer-specific needs, @ Lesson Objectives After completing this lesson, you will be able to: + Deseribe the way of scoring and credit limit calculation using forrmulas and how these can be configured using the formula editor + Deserite the functionality and the scope of the checking rule + Explain the concept of building up process chains with credit events Business Example A flexible Enhancement Framework allows the specific optimization and automation of credit management processes for companies, QQ —— [eral ct Rule for scoring and credit imi ealeutation ‘CREDIT PROFILE > Score ‘Scoring tomato Risk Class Dematen tem Sere Credit Check rule = Detrmonofcrec sips ‘CREDIT SEGMENT Gata Main credit segment 0 > Creat mit (ct attrnis 0 > Total cro expocu wn muss? Payment history NAME rot fora 2 (Creat segment 1 (Creat segment 2, > Credit mit > Credit mit 2 Total credit exposure > Total ere exposure 3 Payment history 3 Payment history Figure 35: Control of Risk Evaluation 2015 ‘© SAP SE oF an SAP efflate company. Al rights reserved 75Unit 2: SAP Credit Management Fscoz0 © Condition “Substitution Ercopai Caleaton stops Formula ~ Scoring for indi Andustry = TT" AND ‘nad toporastotne score | || County Scoring for erect group ‘i 18 pons tothe score -Megalve list check a Fonction 1 End of valuation Business Porter | [Exfemal tina -Scoringforestemal rating | |indsiy or Fina score =25 Rink case “annual wales Credit group GRADESRANK canta STRINGZNUM Figure 36: Formula Editor A scoring formula or credit limit formula is derived from several calculation steps. ‘A formula step can be: + Accondition (checking the value) + A substitution (setting scoring value) + Anexception (ignoring the calculation) A formula uses: + Parameters (values filled at muntine) + Functions You can enhance functions and parameters by implementing customer-specific BAdIs, © SAP SE or an SAP aifllate company Al rights reserved 2016Fsc020 Lesson: Flexible Enhancement Framework '= The scoring rules define the way a customer is scored. The results a crodtworthiness value or score. © You define the scoring rules in the formula editor using the folowing input parameters: >> SAP Buetnces Partner—Mactor Data (precontigured eld eelection) >> Input porametere con be enhanced by BAdl implementation 1m Result of the scoring formula > Creaworhiness valu Score (numer or alphanumn) > "Vata ot cate > Rick lace determined =A valuation fog is available to clarify the results Figure 37: Scoring Formula system i calculated, "= You define the credit iit formula in the formuta editor using the following input parameters: > SAP Business Pariner— Master Data (nreconigued fel selection) > Input parameters can he enanced by BA! implementation ‘= Result of the crecit limit formula: > Credit mit (numeric or alphanumeric) > "Vakd to" date = Accredit limit formula can be assigned for each rating procedure and credit segment. = Acalculation log is available to explain the credit lvit proposal. Figure 38: Credit Limit Formula @ = The credit limit formula determines how the credit limit proposed by the 2015 © SAP SE or an SAP offlate company. Al rights reserved 7Fsco20 creditworthiness of a customer when a sales order is created, and © 1 The check rule determines the steps that are taken to check the leads to a credit decison about the orc Atala check tops: > Danie cet nt check rae atime > check he sin dung bev! > Cheek eldet pen item > Chk an ordre sl cota by cet manaporent 7 an a ca ne mena pipe ine ne, Es) Figure 29: Cheek Rule \yevents ee: Sx? eat anager SAP Credit Management Credituster dala changed aaa “a credit score changed 1 Credit chanaed 1 Exiemalraing changed Follow-Up Actions © — ag | ancote Figure : Events and Follow-Up Actions ay {© SAP SE oF an SAP aflate company. 78 ANI rights reserved, 2015Fscoz0 Se Lesson: Flexible Enhancement Framework You create scoring and credit fmt formulas using the formula edilor Parameters (for example, business parner data) and functions are used as input parameters, ‘= One scoring formula and several credit limit formulas (for each credit seginen!) are assigned to the rule for scoring and credit limit calculation, which is assigned to each customer inthe credit profile (SAP. business partner). The risk class is determined directly from the score. In Customizing, specific score ranges that do not overlap are assigned to each risk class. In Customizing for the check rule, determines the steps that are taken to check the creditworthiness of a customer when a sales order is created. This may include (for example) the static check of the credit limit or the check ofthe highest dunning level = You can set up customer-speciic process chains in SAP Credit ‘Management using events and the follow-up actions that they tigger. Figure 41: Summary 2015 (© SAP SE or an SAP affliste company All rights reserved 79Unit 2: SAP Credit Management. Fscoz0 @ Lesson Summary You should now be able to: Describe the way of scoring and credit limit calculation using forrmulas and how these can be configured using the formula editor Describe the functionality and the scope of the checking rule Explain the concept of building up process chains with credit events 80 (© SAP SE or an SAP affiliate company. All rights reserved, 2015Fsc020 Lesson: External Credit Information External Credit Information Lesson Overview This lesson overviews the integration of external information providers into credit ‘management processes with SAP Credit Management. Q Lesson Objectives After completing this lesson, you will be able to: + Describe the infegration of (multiple) external credit agencies in SAP Credit Management + Explain the way to use external ratings in the scoring calculation, Business Example External credit information can make an essential contribution to the overall risk evaluation of a business partner, 2015 © SAP SE or an SAP affiliate company All ighis reserved. 81Unit 2: SAP Credit Management Fscoz0 1 Entering credit agency data marualy (in SAP Business Partner iggers request for new customers to rate. 22 Monitoring information from the credit agencies about particular customers bs read automaticaly. 9 Cre eport from the credit agency is saved in SAP Business Parner. 4. Vatues from the credit report (such as external ratings of financial statement data ae imperted into SAP Business Parner fields. Figure 42: Integration of External Credit Agency 1. Aceredit report can be requested directly from the customer master of the SAP Credit Management server. The request, including the customer 1D, is sent to the credit agency over the Intemet. The credit agency then returns the relevant credit report 2. Credit agencies offer organizations 2 “monitoring service”, whieh means that iff relevant customer data changes, the agency sends a credit report to the organization without the organization having requested it explicitly. By configuring the SAP PO, the scenario occurs as follows: The eredit report is sent to a specific mailbox belonging to the organization; this is then seanned periodically using SAP PO, and the report is read automatically in SAP Credit Management, 3. The credit report (XML document) is saved in the customer master in SAP Credit Management. 4, Inaddition, the system reads the external rating contained in the eredit report, \which is then saved in the customer master (credit profile: external ratings). By enhancing the XML interface and configuring SAP Business Partner, you can import other data (such as financial statement data) and fil the fields for SAP Business Partner automaticaly, Each XML-based information provider ean be connected to SAP Credit Management. In future, the specific XML mapping of SAP partners to be connected will be made available as PO content. © SAP SE or an SAP affllate company, ‘All nghts reserved, 2015Fscoz0 8 Lesson: External Credit Information Figure 43: Integrating External Credit Agencies Il If you do not have the customer [D, you can use SAP Credit Management to send ‘a request for the customer ID to the XML interface of the eredit ageney before requesting the eredit report. ‘You can start this request directly from the master data of the business partner. Ifthe business partner is found in the database of the credit agency, the corresponding customer ID is transferred and can be saved directly in the business partner master. 2015 {© SAP SE or an SAP afflate company, All ighis reserved 83 EyUnit 2: SAP Credit Management Figure 44: Example: Integration of D&B / Creditreform © Fsco20 TCA rica ‘SAP Credit Management| Gretvortinens esiaaion ——==-;—__.... “Score from SAP Credit waragomens Figure 45: Importing Creditworthiness from SAP FI-CA ‘The FI-CA creditworthiness és treated as an external rating in SAP Credit Management. You must activate integration to SAP Credit Management in the P-CA system. (© SAP SE or an SAP affllate company, 84 All rights reserved. 2015Fsco20 Lesson: External Credit Information e 1. Definition of an internal ranking for external rating (Customizing). 2 Check whether the external rating is available. IF RATING (4711, D8B)) 3. Conversion of the external rating inl the assigned intemal ranking ((afing conversion function) 4. Calculation of the scoring based on the internal ranking. integration of External Valuations in the Creditworthiness Formula = Each XML-based information provider can be connected to SAP Credit Management '= When you connect credit agencies to SAP Credit Management, you can send credit reports that have or have not been requested by the ‘organization tothe organization's SAP Credit Management system when the customer data is changed (monitoring). The credit report is then saved automaticaly as a document in SAP Business Partner, and the external rating from the report is stored as an external valuation in the SAP business partner's credit profile. = The key figure for a customer's creditworthiness, which is available In SAP Contract Accounts Receivable and Payable, can be imported as fan external raling into the credit profile ofthe corresponding SAP business partner in SAP Credit Management. 1H The external rating contained in the credit profile can be taken into account when calculating the score (use of the internal rating within the formula configuration). Figure 47: Summary 2018 @ SAP SE or an SAP affliate comoary. All rights reserved. 85 EyUnit 2: SAP Credit Management Fscoz0 @ Lesson Summary You should now he able to: + Describe the integration of (multiple) external eredit agencies in SAP Credit Management + Explain the way to use external ratings in the scoring calculation, © SAP SE or an SAP affllate company, 86 All nghts reserved. 2015Fsco20 Lesson: Reporting & Mass Change Lesson: Reporting & Mass Change =) Lesson Overview This lesson explains how to maintain the master data in SAP Credit Management in mass. ‘Various reports are available (0 evaluate credit-relevant data, Lesson Objectives ‘Afier completing this lesson, you will be able to: . Describe the SAP Credit Management repor the OLTP system like = The cteation of early warning lists and analysis ofthe exposute for one oF rmaltiple customers ~ The reporting on the past credit checks of a customer + Explain how to use the mass updates for different purposes 1g and analysis capabilities in Business Example Credit Management reports can help to identify customers with a high credit risk and to discover further potentials for the improvement of the credit management process 2018 © SAP SE oF an SAP cfflate company, All ights reserved. 87 EyUnit Cs) 2: SAP Gredit Management Fscozo 1=UKM_MASS_pISPI — Roport for eredit profile data > Rick eae, score, rating procedure, vali dato = UKM_MASS_DISP2 Report for credit seqment data: > Cred mi (curencalulated) + vakty date > Block i SAP Crect Management > Customers te monitor > Resubmission date > Assigned credit analyst > Plisall UKM_MASS_DISP1 fields = UKM_MALUS_DSP Report for credit limit utilization: > Credit exposure (%) Cre limit sl avaable/Amount by which cre limit exceeded (absokste) ‘Customer credit gioup ‘Creat analy or group eeubmigsion date Block n SAP Crect Management ‘= UKM_BP_DISPLAY — master data ist: > Display of goneral and ered@-epectc business partner master data, > Dioplay of due or overdue toms on a key date in a due and overdue salection ret Figure 48: Reporting | SAP recommends that you work with the ALV (ABAP List Viewer) layouts so that the system does not display unfilled fields. ‘You can use the report for credit limit utilization to set threshold values that trigger a ‘warning list (for example, of all customers with a credit exposure greater than 80%). © SAP SE oF an SAP affiliate company, Al rights reserved. 2018Fsc020 © 2018 Lesson: Reporting & Mass Changs | UKM_MASS_RECON— reconciliation of credit exposure >> Re-processng of credit checks for sales orders and dliveies created during PL outage > Crose-sysiem reconeiation of relevant values in SO and Crodt Management |= UKM_VECTORS - ateptay / correction of payment behavior summary = Ux_COMMITMENTS — display {correction of commitment data > iepay of commitments, for examele, by coramitent type o reat horizon > Dota vow of commitment ier (for example, open tems, open orders) > uo date for open tems and onder = UKM_LOGS_DISPLAY protocol for incorrect creat checks and Commitment updates > Diepay of al conducted stops ofthe ordor-rlated ere chock rel te result of each step > Diopay of ol eros that oceured during the comment update (for exams ‘customer not yet created in SAP Credit Managemen!) > Protocols ean be deleted or archived 1 UKM_MASS. SHOW — display of extracts > Dissay of extracts wren by mass updates Figure 49: Reporting I = UKM_MASS_UPDS: for defining the rule in the Credit Management data of the business partner = UKM_MASS_UPDS: for updating the credit limit in the credit account = UKM_WASS_UPD2: {or updating the score of the business partner = UKM_MASS_UPDI. {ot updating the external credit information for the business partner Figure 5 Mass Changes ‘When you display the change results, the system displays the changed entries only. = Various reporting and analysis options are available in SAP Credft ‘Management, such as creating warning lists, analyzing liabilty data for ‘one or more customers, or lagging the last order-related credit check for a customer. '™ Various mass changes are available in SAP Credit Management, such 2s calculating the creditworthiness, risk cless, or credit limit forthe first time for a number of customers. : Summary © SAP SE or on SAP aflate company. Al rghis reserved. 89 7Unit 2: SAP Credit Management Fscoz0 eo Lesson Summary You should now be able to: + Describe the SAP Credit Management reporting. and analysis capabilities in the OLTP system like - The creation of early warni multiple customers - The reporting on the past credit checks of a customer + Explain how to use the mass updates for lists and analysis of the exposure for one or @ SAP SE or an SAP affliate company All rights reserved 2015Fscoz0 \: Integration of SAP NetWeaver BI and Portal Lesson: Integration of SAP NetWeaver BI and Portal Lesson Overview This lesson overviews the integration of SAP Credit Management with SAP ‘NetWeaver Business Intelligence (SAP BI and SAP Enterprise Portal, @ Lesson Objectives After completing this lesson, you will be able t: + Describe how SAP BI can be used for reporting purposes and for scoring calculation + Explain how SAP BI queries are used within the Credit Manager Portal and how you can add your own BI reports to the credit manager portal Business Example ‘The integration of Credit Management with BI and Portal provides farther options to improve the credit management process. ‘SAP NetWeaver Business Tnteligence InfoProvider and Queries General Master Credit Profile Payment History Records Cred. Exp. Data (Order History SAP Business SAP Credit SAP ERP Sales Partner Management & Financials Figure 52: SAP BI Extractors 2018 © SAP SE oF on SAP aflote compary. All nghts reserved 91 EyUnit 2: SAP Credit Management Fsco20 = InfoProviders (ocDM") ‘cre rome Cec secon! data crac prof ory Ces iat esky “ola Expcoure ‘cateetve Processing = Queries (ocr) Fick Cis Reval Anas Gre prot anajis ‘ct tay ik cls anaes Cract iiory (datyonty be) sc ca/Se ery (yon bas) Cre Exposure by County ary warn st Peto Figure 53: SAP BI Content e Scoring in SAP BI 4. Data transfert BI 3. Tranctor Score to SAP (periodic) t Crmdht Management (UKM_MASS.UPD2) FZ roa [seo] Process Analysis Parameters eR J (0CR_APO) Dunning 2 Analysis process. Payment arrears (ocr.APO) Unjstined disputes Result: Score Figure 54: SAP BI Analysis Process © SAP SE oF an SAP aifilate company. All rights reserved. 2015Fscoz0 Lesson: Integration of SAP NetWeaver Bl and Portal (Credit Manager Portal —s : Figure 55: Credit Manager Portal By using Single Sign-On (SSO) in Enterprise Portal 6.0, you can display information from different source systems on a single Web page. External services based on HTML can be included in the credit manager's role (for example, DUNS number search You can define your own iViews in addition to those delivered in the Business Package (BP). The BP for SAP Credit Management 60. is available at Inups:/;www.sdn,sap.com/sdn/contentportfolio.sdn and contains the following iViews: + Credit Exposure by Country (Absolute) + Credit Exposure by Country (Percentage) + Portfolio + Risk Profile + Credit Limit History + Early Waring List + Business Partner Master Data 2015 (© SAP SE oF on SAP aflste company. All rights reserved 93 EI”Unit 2: SAP Credit Management Fsc020 avaiable in the BI content for SAP Creaft Management, as woll as to calculate complex creditworthiness formulas based on data from ‘SAP Credit Management, the resull of which is returned lo SAP Credit Management. ‘= Using SAP Enterprise Portal a personalized Web page can be set up for credit managers (business package for SAP Credit Management), Credit managers can then use this page to access information and analyses relevant for the credit decision from different source systems, ‘without having tc log on to the indridual systems. @ ‘= SAP Bl allows you to analyze credit management data using requests Figure 56: Summary © SAP SE oF an SAP afilate comary 94 Al ight reserved. 201580020 Lesson: Integration of SAP NetWeaver BI and Portal @ Lesson Summary You should now be able to: + Describe how SAP BI can be used for reporting purposes and for scoring calculation + Explain how SAP BI queries are used within the Credit Manager Portal and how ‘you can add your own BI reports to the credit manager portal 2008 ‘© SAP SE oF an SAP aflite company. Al rights reves 95Unit Summary 50020 8 Unit Summary ‘You should now be able to: + Define SAP Credit Management (as part of SAP Receivables Management) + List the current pain points in credit management processes + Describe how to manage the credit risk (requirements) + List the functions and features of SAP Credit Management + Explain the (landscape) scenario of centralized credit management + Describe the processes that are covered by SAP Credit Management + Explain what kind of Credit Management data are organized in which way within SAP Business Partner, tht is - The credit profile for the central storage of data referring tothe risk evaluation ‘ofa customer (internal scoring, risk ess, external rating, credit check rule) + The organization of credit limits in credit segments = The possibility of building customer hierarchies Using relationships + Explain the integration of SAP Credit Management in R/3 SD and FAR, including - The exposure update in SAP CM by liability information of SD and FI-AR - The iransfer of payment belavior information from FI-AR to SAP CM (credit “he ret heck in SD + Describe the possibility to enhance the integration with own logie by implementing BAdIs + Explain the use of the credit ease forthe electronie processing of eredit limit requests + _Deseribe the way of scoring and credit limit calculation using formulas and how those can be configured using the formula editor + Describe the fuinetionality and the scope of the checking rule + Explain the concept of building up process chains with credit events + Describe the integration of (multiple) extemal credit agencies in SAP Credit Management + Explain the way to use external ratings inthe scoring calculation, + Desoribe the SAP Credit Management reporting and analysis capabilities in the OLTP system like = The creation of early warning lists and analysis ofthe exposure for one or multiple customers ~The reporting on the past eredit checks of a customer + Explain how to use the mass updates for different porposes 96 @ SAP SE or an SAP afliate company. All rights reserved 2015F020 Unit Summary and for scoring + Describe how SAP BI can be used for reporting purpos calculation + Explain how SAP BI queries are used within the Credit Manager Portal and how you can add your own BL reports to the credit manager portal 97 Ey 2015 © SAP SE or an SAP affliate company. Alrights reservedUnit Summary Fscoz0 © SAP SE or an SAP afiliate company 98 ANI rights reserved. 2015Unit Summary Fscoz0 © SAP SE or an SAP afliate company 100 A ighs reserved 2015