Start of Content Area

Process documentation FI-CA: Credit Management  Locate the document in its SAP Library structure

Purpose

You can use this business process to monitor the risk of losses on receivables by setting a credit limit for your customers.

At regular intervals, Contract Accounts Receivable and Payable (FI-CA) transfers the status of the creditworthiness and the open items (credit exposure) of each customer to SAP Credit Management (FIN-FSCM-CR). When you create a sales order for a customer in the sales system (for example, SAP ERP SD, SAP CRM, or another external sales and distribution system), you can start a credit check in SAP Credit Management. The system checks the credit-relevant data of the customer and whether the sales order volume is within the credit limit set. This enables you to recognize early whether a customer is able to pay his open invoices and, if necessary, you can prevent any further deliveries to the customer so that he is forced to pay his liabilities before receiving further goods.

In this business process, SAP Credit Management is the leading component. The components Sales and Distribution (SD) and Contract Accounts Receivable and Payable (FI-CA) transfer the credit-relevant data for their customers to SAP Credit Management. There you can update, check, and evaluate this data.

Process Flow

This graphic is explained in the accompanying text

...

The business process FI-CA: Credit Management consists of the following phases, which are run in the following process steps:

Phase

Data Exchange

Process Steps

Replication of Creditworthiness

From Contract Accounts Receivable and Payable (FI-CA) to SAP Credit Management (FIN-FSCM-CR)

Process steps 1 to 4

Update of credit exposure and payment behavior summary

From Contract Accounts Receivable and Payable (FI-CA) to SAP Credit Management (FIN-FSCM-CR)

Process steps 5 to 6

Credit check during creation of sales order

From Sales and Distribution (SD) to SAP Credit Management (FIN-FSCM-CR)

Process steps 7 to 13

Update of credit exposure

From Sales and Distribution (SD) to SAP Credit Management (FIN-FSCM-CR) and Contract Accounts Receivable and Payable (FI-CA)

Process steps 14 to 20


The business process runs in the following steps:

       1.      Replicate creditworthiness (FI-CA)

The system transfers changes in the creditworthiness of business partners in FI-CA to SAP Credit Management.

       2.      Update FI-CA creditworthiness and calculate score (FIN-FSCM-CR)

The system calculates the score of a customer considering the FI-CA creditworthiness.

       3.      Forward score to FI-CA (FIN-FSCM-CR)

The system forwards the current value of the score to FI-CA.

       4.      Update creditworthiness in FI-CA and use for further activities in FI-CA

FI-CA uses the creditworthiness value determined from SAP Credit Management to derive further activities, such as dunning and processing returns.

       5.      Transfer credit exposure and payment behavior summary (FI-CA)

For the business partners required, FI-CA determines the current credit exposure and payment behavior summary and transfers this data to SAP Credit Management using an XI interface.

       6.      Update credit exposure and payment behavior summary (FIN-FSCM-CR)

The system enters the data in the credit segments of the business partner in SAP Credit Management.

       7.      Create sales order (SD)

In the SD system (for example, SAP ERP SD, SAP CRM, or another external SD system), you create a sales order for the customer directly or based on a quotation that the customer has accepted.

       8.      Call credit check (SD)

Before processing the sales order further, the Sales and Distribution (SD) component makes sure that the total value of the credit exposure plus the value of the sales order does not exceed the customer’s credit limit. To do this, the system sends a request for a credit check to SAP Credit Management and transfers the data of the sales order.

       9.      Request current credit exposure value from FI-CA (FIN-FSCM-CR)

SAP Credit Managementrequests the credit exposure of the business partner from FI-CA.

   10.      Determine and forward current credit exposure (FI-CA)

FI-CA determines the current value of the credit exposure and forwards the data to SAP Credit Management.

   11.      Carry out credit check (FIN-FSCM-CR)

The system compares the credit exposure of the business partner with the credit limit in SAP Credit Management to check whether it exceeds the credit limit. The credit checks that the system carries out depend on the rules defined in the credit master data of the business partner.

   12.      Transfer result of credit check (FIN-FSCM-CR)

The system summarizes the results of the individual credit checks and forwards them to the component Sales and Distribution (SD). The component Sales and Distribution (SD) saves the result in the status of the sales order.

   13.      Save sales order (SD)

If the result of the credit check is that the credit limit is not exceeded, the system can process the sales order further (for example, to deliver the goods).

   14.      Report order value (SD)

The sales order now starts, for example, production or delivery of goods that the customer pays for at a later date. The system therefore forwards the value of the order to SAP Credit Management as a credit exposure with a specific credit exposure category.

   15.      Update credit exposure (FIN-FSCM-CR)

Using an interface, SAP Credit Management receives the data for the new credit exposure value for the customer; it has increased as a result of the sales order. The system saves the order value in the items of the credit segment for the business partner and updates the credit exposure.

   16.      Create billing document (SD)

The system forwards the billing document for the sales order to FI-CA automatically. At the same time, it creates a message for SAP Credit Management that the total credit exposure of the customer has been reduced by the value of the order.

   17.      Create open items (FI-CA)

Once the billing document has been transferred, FI-CA creates open items in the contract account of the business partner.

   18.      Transfer credit exposure and payment behavior summary (FI-CA)

At regular intervals, FI-CA forwards the current value of the credit exposure and the payment behavior summary to SAP Credit Management (see also step 5).

   19.      Update credit exposure and payment behavior summary (FIN-FSCM-CR)

When closing the processing of the sales order, the Sales and Distribution (SD) component forwards the invoice to FI-CA. The invoice represents the receivable due from the customer. SAP Credit Management therefore reduces the value of the credit exposure by the value of the sales order billed and simultaneously increases the value of the credit exposure by the credit exposure determined from FI-CA.

   20.      Create list of credit limit utilization (FIN-FSCM-CR)

SAP Credit Management creates a list with details of the level of credit utilization for all business partners.

Result

Possible results of the credit limit check:

      The sales order was released; the goods have been delivered to the customer.

      Credit limit, score, risk class have changed in the business partner master record.

      The credit exposure and payment behavior summary were updated.

 

End of Content Area