S4 HANA SALES NEW FSCM CREDIT MANAGEMENT

Question 1

S/4 credit management

Answer 1

Part of FSCM – financial supply chain module

Question 2

Credit Segments

Answer 2

Defined to track the cusotmer’s credit limit for each of the business divisions

Question 3

Credit control area

Answer 3

Organizational unit which is specificed for a sales area that controls the credit checks for sales orders processed in that sales area

Question 4

BP credit management role

Answer 4

Business partners are enabled for credit management role by spcifying the important credit related data for the customer

• RUle to caluclate credit score
• Risk class for the customer
• Credit check rule
• Customer group – corporate, wholesaler, consumer
• External credit information – Eg: credit score from an external agency like a bank

Question 5

BP credit segment data

Answer 5

Segment data managed

• Credit limit for corresponding credit segment
• Credit exposure is updated dynamically based on total value of

open orders

open deliveries

open invoices

open receivables

• Above credit exposure categories
• Credit blocks can be set for the customer at the credit segment level
• Relationship between a BP and credit segment similar to BP to a company code. It is possible to define a BP in multiple credit segments and set credit limits for each
• Lower level credit segment limits can be rolled-up to a higher levle credit segment level
• BP’s over all credit limit at the main segment level would be sum of the limits defined at lower level segments

Question 6

S/4 SD-FSCM credit control areas

Answer 6

Credit control area is assigned to the sales area which credit checks need to be implemented

Credit control area is assigned to a credit segment for credit checks processing

Question 7

S/4 SD-FSCM risk categories

Answer 7

Business partners are classified using risk categories defined in each of the credit control area.

These categoies should be identical to the risk classes maintained in the FSCM credit management

Question 8

S/4 SD-FSCM credit check activation

Answer 8

Credit checks are activated for a sales order line item by enabling the check at item category level

Question 9

S/4 SD-FSCM credit exposure updates

Answer 9

Credit exposure for a BP is updated for a credit segment. Update indicator controls if the system considers oepn orders, delivers, invoices etc

Question 10

Credit management configuration overview

Answer 10

Sales order credit checks are implemented using the following configurations

• Automatic Credit limit indicator ‘D’ and credit group should be assigned to sales document type
• Automatic credit limit check is defined for the following combination
• Credit control area
• Risk category same as the risk class defined in credit management
• credit group of the business partner

Question 11

Automatic credit check indicator ‘D’

Answer 11

Automatic credit check indicator ‘D’ and credit group should be assigned to sales document type

Question 12

Automatica credit check configuration

Answer 12

Automatic credit check cofinguration is done at credit control area, risk category, credit group level

Question 13

Automatic credit control

Answer 13

Automatic credit check configuration is done at credit ccontrol area, risk category, credit group level