Credit Management-FSCM (1)

Credit Management version 1.0

Aaditya Bajoria (OTC, LE, CIN, GATP)

Cognizant-426869

Credit Management In S/4 HANA Sr.No 1 2 3 4 5 6 7 8

Don’t Copy File Data

Topics Introduction Master Data Configuration Technical Settings Setup WS-RM Test Case Approval Process New Transaction

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


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

Credit management has moved from SD to FSCM in S/4 HANA. SAP Financial Supply Chain Management (FIN-FSCM)


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

Business Partner is a CLONE of Customer Master

Each Department Can Maintain Detailed Extension View

Click on credit profile tab Don’t Copy File Data

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Choose Rule for Calculation a Score

Risk Class can Automatically or Manually set

Select what type of Credit check to perform for this Customer

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


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Click on Credit Segment Data, below screen appear. Maintain Credit Segment

Select the rule for Calculating Credit limit Automatically

Credit limit Data

Credit Exposure gets updated after sale order entered


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If user has click on information icon



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then user can see all deatils

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3. Configuration Rules for Calculating Credit Score and Limit


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

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

Customer Group


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

Click on display formula


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User can create his own formula based on below parameters


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Create our own rule , click in formula editor

Create Risk Class


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


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Click on new created rule and select checks option. Here User can select the task as per busienss requiremnt.


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For ex- user can horizon days

After maintaining all required details user can see parameter overview.


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

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


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

Assign credit control area to credit segment.


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Assign credit control area to sale area.

Define automatic credit control (OVA8)


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Create Risk categories

4. Technical Settings Need to activate few BADI’s to transfer from SD to FSCM.   

UKM_R3_ACTIVATE BADI_SD_CM UKM_FILL


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


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System and Component Landscape        

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

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


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

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

CreditCommitmentNotification_In CreditCommitmentNotification_Out CreditPaymentBehaviourSummaryNotification_In CreditPaymentBehaviourSummaryNotification_Out CreditWorthinessChangeInformation_In CreditWorthinessChangeInformation_Out CreditWorthinessQurey_Out CreditWorthinessQurey_In


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Click on Web Service confirguration.

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


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If there is no with WS-RM or PI systrem. System will show below message.

In Debugging found service CreditWorthinessQurey_Out is not working because connection has not made. Don’t Copy File Data

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6. Test Case Sale order no 82

Once sale order save amount 2200 will transfer in customer master


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

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


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

8. New Transaction

   

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

     

UKM_TOTALS report UKM_ITEM_LOG Function SD_ORDER_CREDIT_CHECK Function MCV_UPDATE_CM_ORDER BAdI BADI_SD_CM UKM_TRANSFER_VECTOR


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    


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For AR items - UKM_TRANSFER_CREDITS, as the other poster said For SD items - UKM_RVKRED77 For Business Partner Commitments - UKM_COMMITMENTS For Payment Behavior - UKM_TRANSFER_VECTOR the credit limits per segment for the BP: UKMBP_CMS_SGM

Configuration_Gui de_CR_2016_S4HANA1602_EN.pdf


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