SAP FI Credit Management |
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Transcript of SAP FI Credit Management |
Credit Management4.6fi_19.1
Chapter 19Credit Management
• Credit Management is the process of establishing customer credit limits, establishing credit checking policies and monitoring Customers against those criteria. It is configured in both the Financial Accounting (FI) and Sales & Distribution (SD) modules.
• Chapter Objectives– Provide an understanding of how credit limits are set and
maintained for customers.– Provide an understanding of the hierarchical relationships
between Credit Control Area, Company Code, and Customer.
– Identify and understand the functionality of monitoring credit limits for Customers using Automated Credit Checking in FI and SD.
Credit Management4.6fi_19.2
CustomerCustomer CustomerCustomerSales Rep.Sales Rep.
CreditCheck
CustomerCredit Limits
• Accept Order• Accept Order / Block Delivery• Refuse Order
Used to Set and Control Credit Limits for Customers
SalesOrder
CustomerCredit
Information
Check
Credit Management
Credit Management4.6fi_19.3
Credit Control Area Credit Control Area
Client
PepsiCo.
CCAA
Company Code
123Company Code
456
Customer A Customer ACustomer ACustomer B Customer C
Example:
ClientClientCredit Credit
Control Control AreaArea
CompanyCompanyCodeCode CustomerCustomer
CCBB
Company Code
999
Credit Control Area
Credit Management4.6fi_19.4
Step 1: Define a Credit Control Area
Step 2: Assign Company Codes to the Credit Control Area
Defining a Credit Control Area
Credit Management4.6fi_19.5
CCAA < = $ 500,000.00CCCH < = $ 500,000.00
CCAA +CCCH < = $ 2,000,000.00
2 levels of credit limit:2 levels of credit limit:• Globally across all Credit Control AreasGlobally across all Credit Control Areas• Per Credit Control AreaPer Credit Control Area
Example:Customer A Global Limit: $2,000,000.00 Credit Control Area Limit: $500,000.00
PepsiCo.
Customer A Customer A
Client
CCAA
Credit Control Area
CCCH
Credit Control Area
123
Company Code
999
Company Code
Assigning Credit Limits Per Customer
Credit Management4.6fi_19.6
Maximum amount that can be assigned
per Credit Control Area
Maximum sum amountthat can be assigned
across all CreditControl Areas
Highest limit alreadyassigned for an individual Credit
Control Area
Total limit alreadyassigned across allCredit Control Areas
Maintaining Credit Limits Per Customer
Credit Management4.6fi_19.7
Postings:Postings: Increase these amountsIncrease these amountsClearings:Clearings: Decrease these amountsDecrease these amounts
Special G/LTransactions such as down payment
Receivablesfrom sales
Open Sales Orders,
Deliveries andBilling Docs. Total receivables,
Special G/L Trans. and outstanding
order value
Monitoring Credit Limits for Customer
Credit Management4.6fi_19.8
A: WARNING MESSAGE
SALES ORDER TYPE
B: ERROR MESSAGE
C: WARNING MESSAGE WITH DELIVERY BLOCK
D: AUTOMATIC (AUTOMATED CREDIT CHECKING)
STATIC ONLY
STATIC or DYNAMIC
Check Credit Limit (Select One)
Credit Checking
Credit Management4.6fi_19.9
+
OPEN SALES DOCUMENTS
OPEN DELIVERY DOCUMENTS
OPEN BILLING DOCUMENTS
OPEN ITEMS (A/R)
+
+CREDIT
EXPOSURE
Static Credit Check
Credit Management4.6fi_19.10
DynamicComponent
Static Component
OPEN DELIVERY DOCUMENTS
OPEN BILLING DOCUMENTS
OPEN ITEMS (A/R)
OPEN SALES DOCUMENTWITHIN
HORIZON
+
++
Credit Exposure
Dynamic Credit Check
Credit Management4.6fi_19.11
– STATIC CHECK– DYNAMIC CHECK– ON BASIS OF MAXIMUM DOCUMENT VALUE– WHEN CHANGES ARE MADE TO CRITICAL FIELDS– ON DATE OF NEXT INTERNAL REVIEW– ON BASIS OF OVERDUE OPEN ITEMS– AGAINST HIGHEST DUNNING LEVEL
Credit Checks
– WARNING WITH BLOCK
– ERROR
System Reaction
– WARNING
Automated Credit Checking Features
Credit Management4.6fi_19.12
Credit Control Areas (CCA)
EURO EuropeCCCS North America
Risk Categories
RO1 High RiskRO2 Medium RiskRO3 Low Risk
Credit Representative Groups
001 Europe002 North America
Customer : 6
Credit Control Area : EURO
Risk Category : R02
CreditRepresentative Group : 001
Credit Limit : 10,000 USD
Customer Credit ManagementCustomer Credit ManagementAreaArea
Credit RepresentativeCredit Representative
Part Func. Pers.No. MailKB 012 Jones
Automated Credit CheckingConfiguration in FI
Credit Management4.6fi_19.13
01 Sales Order02 Delivery03 Goods Issue
Document Credit Groups
OR...
Sales Document Types= Automated
CheckD
ActiveTANAGN Yes
Item Categories
X
Factors influencing credit:
Credit + Risk + DocumentControl Category Credit Area Group
Automated Credit Checking Configuration in SD
Credit Management4.6fi_19.14
Credit Account Order Credit Value Risk Status
Customer A 351 1000.00 Medium Dynamic ChkCustomer X 567 200.00 High Dynamic ChkCustomer Y 595 50000.00 Low Static Chk
Credit Control Area CCXX Credit Rep Group US
Release the order(s)
Blocked SD Orders
Reviewing and Releasing Credit Holds
Credit Management4.6fi_19.15
Risk Management
Risk Management
Payment Cards
Export Credit
Insurance
Letters of Credit
Credit Management
Manual Checks
Static/Dynamic
Checks+
Sales Order 101
Sold-to #6
Net value $1000
XYZ 10 500
ABC 20 500
Letter of Credit for customer 6
of $600
3. System performs a credit check against remaining $400 of the sales order.
2. The system determines that letters of credit are allowed and finds one for this customer valued at $600.
1. At sales order entry, the sytem determines what types of payment guarantees are allowed for the payer and document type.
Credit Management4.6fi_19.16
A User Exit at the Header Level
Billing View of the Payer Master Record
The Sales Area of the transaction
Company Code of the Sales Organization
Order of checks for determining
the Credit Control Area
First
Last
Credit Control Area Determination Options
Credit Management4.6fi_19.17
Early Warning List
• Creates a report on customers who are likely to become critical
• The Early Warning List derives its information from the A/R Summary. It is necessary to run the A/R Summary on a timely basis to ensure up to date information.
• Management can use the results of these reports to determine a course of action on clients. Automatic actions can also be set in customizing.
Credit Management4.6fi_19.18
SD Creating SD - Documents
SD Creating SD - Documents
FI FI
Report: RFCMCRCV
Non distributed systems: CHECK
a) perfor- mance+
b)
Distributed systems: CHECK
a)
b)perfor- mance?
A/R Summary
Creates
Actual Data
CHECK
Report: RFDKLI42
Report: RFDKLI42
Early
Warning
Listvia RFC
A/R Summary in distributed and non-distributed systems
Credit Management4.6fi_19.19
Preliminary settings are done here.
AR Summary
• It contains all credit information for an account in compact form
• Can be used for SD credit checks both in distributed and non-distributed credit management
• Increases efficiency in non-distributed systems as repeated read of open items is avoided
Credit Management4.6fi_19.20
AR Summary - Aging Settings
A/R Summary aging settings in A/R
A/R Summary aging settings in SD
Credit Management4.6fi_19.21
Credit Management Chapter Summary
• Key Terms– Credit Management – Credit Control Area– Credit Limit– Automated Credit Checking– Static Credit Checking– Dynamic Credit Checking– Risk Category
Credit Management4.6fi_19.22
Credit Management Chapter Summary
• Key Terms– Document Credit Group– Risk Management– Early Warning List– A/R Summary