FSCM- S/4 HANA Credit Management Configuration.

FSCM- Credit Management in SAP S/4 HANA

This blog will covers SAP credit management (FIN-FSCM-CR available in FSCM) functionality from SD perspective and the difference between the current credit management (FI-AR-CR) that we are using before S4 HANA Vs the SAP credit management (FIN-FSCM-CR) functionality available in S4 HANA. It only talks about the credit management functionality at high level, may be helps for someone who is looking to know about S4 HANA credit management config and flow.

I hope, all of you will like to complete configuration of credit management and this document will help all those who really want to learn SAP S/4 HANA delta change in the system.

The Standard BP role for Credit Management is UKM000 – SAP CREDIT MANAGEMENT.

Configuration Steps for Credit Management in S/4 HANA.

Define Credit Segment

Navigation Path:-

FSCM Credit Management in SAP S/4 HANA

Click on New Entries –

FSCM Credit Management in SAP S/4 HANA

Save it.

Only if Needed:

Note of External Credit Information, you need to create Rating Procedure,

Make sure that the external information providers are connected to the following interface via the XI infrastructure:

Credit Information Query out (Query Credit Information from External Data Providers) in the namespace http://sap.com/xi/FSCM.

Navigation Path:-

FSCM Credit Management in SAP S/4 HANA

Click on New Entries

FSCM Credit Management in SAP S/4 HANA

This rating procedure, you need to assign with credit limit calculation,

FSCM Credit Management in SAP S/4 HANA

Select the created rule and click on score, credit limit and rating procedure.

FSCM Credit Management in SAP S/4 HANA
FSCM Credit Management in SAP S/4 HANA
FSCM Credit Management in SAP S/4 HANA

ID Type = Credisafe.

Define Customer Credit Group

FSCM Credit Management in SAP S/4 HANA

Note: In SAP S/4 HANA, the Credit Management Calculation has enhanced with formula editor function button. Following are the calculation formula criteria:

  1. Currency
  2. Credit Segment
  3. Score
FSCM Credit Management in SAP S/4 HANA

Assign Credit Control Area and Credit Segment. Transaction Code: UKM_SEGMENT

Navigation Path:-

FSCM Credit Management in SAP S/4 HANA

Click on New Entries

FSCM Credit Management in SAP S/4 HANA

Once assignment done with credit control area and credit segment, then save it.

Assign Sales Area to Credit Control Area

This is the normal steps which we are doing in SAP ECC system.

FSCM Credit Management in SAP S/4 HANA

Enter Settings as per below screenshot-

FSCM Credit Management in SAP S/4 HANA

Condition Partner: Update the subtotal with value “A” for Credit Release check for NET VALUE condition type.

FSCM Credit Management in SAP S/4 HANA

Determine Active Receivable Per Item Category. (Transaction Code: OVA7)

Activate as per your required Item Category.

FSCM Credit Management in SAP S/4 HANA

Define Credit Group. (Transaction Code: OVA6)

FSCM Credit Management in SAP S/4 HANA

You can create your own credit group as per requirement.

Assign Sales Document and Delivery Document

FSCM Credit Management in SAP S/4 HANA

If you want to activate the Credit Management at Delivery Level, you can update the same as well.

Define Automatic Credit Control. (Transaction Code: OVA8)

FSCM Credit Management in SAP S/4 HANA

Define Risk Category and Assignment

FSCM Credit Management in SAP S/4 HANA

Note: As we need to activate the BADI for the following Credit Management in S/4 HANA.

FSCM Credit Management in SAP S/4 HANA
FSCM Credit Management in SAP S/4 HANA

Select the BADI and click on ACTIVATE button.

Customer Master Setup:-

FSCM Credit Management in SAP S/4 HANA

Enter the Rules, Risk Class, Check Rule and Customer Group under Credit Profile tab, which you

will get under UKM000 BP role.

After that, go to Credit Data Segment and fill up the value as shown in below snap shot,

FSCM Credit Management in SAP S/4 HANA

Update the value for Limit Defined, i.e. Credit Limit.

Save it.

O2C Process and FSCM Effects:-

After Credit Limit Exceed,

FSCM Credit Management in SAP S/4 HANA

As the Risk Category kept as Error, so it will not allowed saving the sales order.

This completes the FSCM Credit Management in SAP S/4 HANA.

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