SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

S/4 HANA Credit Management Configuration Process

I would like to share the configuration steps in Credit Management Process in SAP S/4 HANA and its functionality.

I hope you will like this and this document will help all those user’s who really want to learn SAP S/4 HANA delta change in the system.

This brings an honor to share this documentation with all of you about how, Credit Management with S/4 HANA.

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

Configuration Steps for Credit Management in S/4 HANA.

Step 1: Define Credit Segment

Path:

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

New Entries,

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

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.

Path:

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

New Entries,

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

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

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

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

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

ID Type = Credisafe.

Step 2: Define Customer Credit Group

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

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

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

Step 3: Assign Credit Control Area and Credit Segment. Transaction Code: UKM_SEGMENT

Path:

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

New Entries.

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

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

Step 3: Assign Sales Area to Credit Control Area.

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

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

Step 4: Enter Settings

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

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

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

Step 5: Determine Active Receivable Per Item Category. Transaction Code: OVA7

Activate as per your required Item Category.

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

Step 6: Define Credit Group. Transaction Code: OVA6

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

You can create your own credit group as per requirement.

Step 7: Assign Sales Document and Delivery Document.

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

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

Step 8: Define Automatic Credit Control. Transaction Code: OVA8

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

Step 9: Define Rick Category and Assignment.

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

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

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

Select the BADI and click on ACTIVATE button.

This complete the configuration procedure for the SAP S/4 HANA for FSCM Credit Management.

Customer Master Setup:

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

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,

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

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

Save it.

This complete the Master Data Setup for FSCM Credit Management in SAP S/4 HANA.

O2C Process and FSCM Effects:

After Credit Limit Exceed,

SAP S/4HANA Finance, SD (Sales and Distribution), SD Sales

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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