SAP Credit Management

SAP Credit Management
Presented by:
Vikram Gollakota
Agenda
• SAP Credit Management

– Business Partner
– Credit Scoring
– Credit Integration
– Workflow
– Credit Checking
SAP Credit Management
FSCM Credit Management vs. SD Credit Management
SAP
Description New Receivables

Old SD Credit
Credit
Management
Management
Credit Checking
Integration platform to third-party credit bureaus via

SAP PI
Credit rules engine for automatic customer risk scoring
and credit limit calculations
Workflow for any credit events
Multiple credit limit categories to capture owned risk,

personal/bank guarantee, insurance etc
Credit limit approval and automatic updates to master
Standard BI content and Portal Access for reporting and

analysis
Business Partner
Business Partner
Business Partner is
a Clo e of
Customer Master
Each Department
can maintain a
detailed extended
view
Business Partner – General Data
Choose a Rule for

Calculating a Score
Risk Class can be

automatically or
manually set
Select what type

of Credit Check to
perform for this
customer
Business Partner – Credit Segment Data
Credit Segment same

as Credit Co trol
Area or Co pa y
Code
Select Rule for

Calculating Credit
Limit Automatically
Credit Limit Data

Business Partner – Relationships
A Customer can be
linked to other
entities
Business Partner – Financial Information
Credit Scoring
Rules for Calculating Credit Score and Limits
Formulas
Click on the
Formula Editor to
maintain the
calculation logic
Define Formulas
for various
scenarios
Formula Editor
Choose from a list

of fields, functions
and operators to
define a step
Series of conditional
steps. Ki d of a IF ,
THEN , ELSE logic
Credit Limit Calculation
Same concept as
Credit Score
Formula
maintenance
Risk Class Determination
Map calculated
scores to Risk
Classes based on
ranges
Credit Integration
External Credit Rating Data Integration
Automatically
Populate Credit
Bureau Data
Standard
Interfaces for
Credit Bureau
• Use SAP XI/PI or WS-RM as the

Integration Platform
• Integrate Sales and Financial

from SAP and non-SAP systems
• Integrate rating information

from External Agencies
• Real-time Credit Checks

Credit Workflow
Credit Workflow Triggers
Events to monitor
to perform
automated
actions or route
to Credit Analysts
Credit Check
Check Rule
Select what type

of Credit Check to
perform for this
customer
Check Rule
Use system
standard Check
Rule or create
your own
Check Rule
Check Rule is a
combination of
individual checks
or steps
Maintain Values
to Check Against
Credit Checking
• SAP FSCM Credit Checking can be enabled to

integrate with both SAP and non-SAP instances
• In Old Credit Management module you could have
only done Credit check for one local system
• Now you can have one global FSCM Credit Instance
and have multiple SAP and non-SAP real-time
perform credit checks
Advanced Features
Scoring Model
Credit Decision
Financial
Information
Characteristics
Check
Rules
3rd Party Credit

Assessment
Check
Credit Limit
Scoring Scoring
Model Model
Scoring Scoring
Engine Engine
Credit Score Map Risk Class

Scoring Model Overview
• Credit Score and Credit Limit are computed using

H‘ CDA s Scori g E gi e
• Scoring Engine allows definition of complex
mathematical formulae using simple structures
like Factor Tables and Assignment Tables
• A Factor Table is a tool to capture weighted
summation:
– Z = aX + bY
• An Assignment Table is a tool to capture
conditional assignment:
– IF Custo er Si ce > years THEN 5
Risk Score – An Example
Risk Score = Financial Score
+ Payment Index
+ Business Score
+ Rating Agency Assessment
Business Score
Financial Score
Credit Limit – An Example
Credit Limit = 0% of Tangible Net Worth If Risk Score is 0
15% of Tangible Net Worth If Risk Score is between 0 and 20
Credit Limit Approval
Credit Dashboard: Workflow: Credit Review
Request for an
increase in limit
Automatic notes are

added to support
the credit limit
request decision.
Workflow - Configuration
Configurable
workflow to enable
quick business
requirement
Credit Limit Request

forwarded for
Approval
Credit Limit Approval - Analyst
Credit Limit Request

Approved – Ability
to capture notes at
an approval level
Credit Limit Tab – show approved amount.
Credit Limit is updated in the system

directly after the DOA is put in effect.

SAP Credit Management

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SAP Credit Management

• SAP Credit Management

Description New Receivables

Integration platform to third-party credit bureaus via

Multiple credit limit categories to capture owned risk,

Standard BI content and Portal Access for reporting and

Choose a Rule for

Risk Class can be

Select what type

Credit Segment same

Select Rule for

Credit Limit Data

Choose from a list

• Use SAP XI/PI or WS-RM as the

• Integrate Sales and Financial

• Integrate rating information

• Real-time Credit Checks

Select what type

• SAP FSCM Credit Checking can be enabled to

3rd Party Credit

Credit Score Map Risk Class

• Credit Score and Credit Limit are computed using

Automatic notes are

Credit Limit Request

Credit Limit Request

Credit Limit is updated in the system

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