You use this function to assess risks for financial document and credit. For example, in most of the foreign trade transactions where you create a trading contract for export and the goods are shipped to a customer in a foreign country, a letter of credit is used for payment/settlement for the goods. If an appropriate payment guarantee procedure is assigned, the system checks the balance of the letter of credit for the customer.

In domestic trading business, a credit check can also be performed if the Customizing and master data settings are properly maintained.

The system gives you a message if the risk management check fails. You can still save the trading contract with a failed risk management check, but automatic sales order generation is blocked.