Credit Management FSCM 1 PDF

Credit Management version 1.
0 Aaditya Bajoria (OTC, LE, CIN, GATP) Cognizant-426869
Credit Management
In S/4 HANA
Sr.No Topics
1 Introduction
2 Master Data
3 Configuration
4 Technical Settings
5 Setup WS-RM
6 Test Case
7 Approval Process
8 New Transaction
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Credit Management version 1.0 Aaditya Bajoria (OTC, LE, CIN, GATP) Cognizant-426869
1. Introduction
The traditional credit management has been stayed for a longtime. Most of the companies using FI-
AR and SD have implemented the traditional credit management to avoid the losses because of
credit risk. But FIN-FSCM-CR takes the credit management to a different level. The FSCM credit
management provides enhanced functionality to monitor credit and exposure risk of a company. It is
an extension over the traditional credit management (FI/SD-CM), which enables the user to have
better control and more transparent view on receivables. Generally business process will not change,
however user will need to use new transaction as old transaction are obsolete in S/4 HANA.
Based on my experience, I have summarized the basic differences between the two ways of
managing the credit in SAP.

Below Transaction and report are not available in S/4 HANA
Credit management has moved from SD to FSCM in S/4 HANA.
SAP Financial Supply Chain Management (FIN-FSCM)

2. Master Data
As we have checked in last document how business partner need to create in S/4 Hana, through below
process how credit master has been extended in business partner.
Business Partner
is a CLONE of
Customer Master
Each Department
Can Maintain
Detailed Extension
View
Click on credit profile tab

Choose Rule for

Calculation a Score
Risk Class can

Automatically or
Manually set
Select what type of

Credit check to
perform for this
Customer
If any company want to get evaluated their new customers on credit worthiness from any third party then,
need to setup interface between S/4 Hana and third party. Then third party send the information through
interface and it will updated in BP in external credit information.
Click on save button

Click on Credit Segment Data, below screen appear.
Maintain Credit
Segment
Select the rule for

Calculating Credit limit
Automatically
Credit limit Data
Credit Exposure gets

updated after sale
order entered

If user has click on information icon then user can see all deatils

3. Configuration
Rules for Calculating Credit Score and Limit

Create Credit Segment
In S/4 Hana we cannt assign credit control area directly in customer master.
Create rating procedure has use to line up the with external party
Customer Group

User can create his own rule for scoring and credit limit and user can create multiple rule and assign to
different customer as per business requirement.
Click on display formula

User can create his own formula based on below parameters

Create our own rule , click in formula editor
Create Risk Class

Create check rule as all functionality of OVA8 are incorporated in check rule, after implemenated Credit
management in S/4 Hana OVA8 screen look like as below.

Click on new created rule and select checks option.
Here User can select the task as per busienss requiremnt.

For ex- user can horizon days
After maintaining all required details user can see parameter overview.

After that link to credit segment to every individual step and save.
Here user can decide which document will consider under credit check.

Create credit segment but it should be similar like earlier segment.
Assign credit control area to credit segment.

Assign credit control area to sale area.
Define automatic credit control (OVA8)

Create Risk categories
4. Technical Settings
Need to activate few BADI’s to transfer from SD to FSCM.
 UKM_R3_ACTIVATE
 BADI_SD_CM
 UKM_FILL

5. Setup WS-RM or PI system

While reading and researching on FSCM credit management, one question always arise that why FSCM CM
required WS-RM or PI system in place, so please refernce below data.
While debuggring also we got to know that connection is required from WS-RM or PI system.

System and Component Landscape
 Service Interfaces: Overview

 Integrating Services in the System
 Configure SOAP Runtime
 Activate HTTPS Port
 Import Security Certificates (for Web service use without local shortcut)
 Maintaining Table T000
 Set Up Web Service Configuration
 Connecting External Information Providers
Set Up Web Service Configuration
Procedure
You have to configure the Web service differently depending on whether you are working in a single or
multiple system scenario.

Settings in a one-system scenario
Choose one of the following navigation options:

Transaction SOAMANAGER
Transaction SRT_TOOLS WS ConfigurationSOA Manager
Define a local shortcut configuration:
On the initial page SOA Management, choose Web Service Configuration. Search for the credit management-
specific services (such as the entry credit*).
Select the sender service (Consumer Proxy), and choose CreateConfiguration for Local Shortcut.
Enter the name for the logical port, select the Logical Port is Standard field, and choose Continue.
In the Service Definition field, enter the receiving service, and choose Done.
Please use below link for more deatil WS-RM
https://wiki.scn.sap.com/wiki/display/XI/Non-
PI+Synchronous+FSCM+Integration+via+WSRM+and+Direct+Updates
We need to setup below service in WS-RM
1. CreditCommitmentNotification_In
2. CreditCommitmentNotification_Out
3. CreditPaymentBehaviourSummaryNotification_In
4. CreditPaymentBehaviourSummaryNotification_Out
5. CreditWorthinessChangeInformation_In
6. CreditWorthinessChangeInformation_Out
7. CreditWorthinessQurey_Out
8. CreditWorthinessQurey_In

Click on Web Service confirguration.
Put Credit* and enter system will show details list which is realted to credit management. After confirgure all
8 services which is mentioned above. user can add many more credit services as per business requirement.

If there is no with WS-RM or PI systrem.
System will show below message.
In Debugging found service CreditWorthinessQurey_Out is not working because connection has not made.

6. Test Case
Sale order no 82
Once sale order save amount 2200 will transfer in customer master

7. Approval process
There are two process to get internal approval for credit limit set for any customer.
1) Once the user save the customer master system will trigger one work flow to concern person and which
user can see in transaction SCASE.
2) If oragination is not ready to set up workflow then, user can this activity manually as well, through same
trasaction.user can fill all required details and save the document.

Another user will search for the case and approve the credit limit.
8. New Transaction
To rebuild the credit exposure do following:

 Use UKM_COMMITMENTS to clear all the exposure.
 Execute UKM_RFDKLI20_AR and UKM_RFDKLI20
 Execute UKM_TRANSFER_ITEM
 Execute UKM_RVKRED07. Make sure nothing is processing at that time as it will put lock on all Sales
related tables.
 UKM_TOTALS
 report UKM_ITEM_LOG
 Function SD_ORDER_CREDIT_CHECK
 Function MCV_UPDATE_CM_ORDER
 BAdI BADI_SD_CM
 UKM_TRANSFER_VECTOR
 For AR items - UKM_TRANSFER_CREDITS, as the other poster said

 For SD items - UKM_RVKRED77
 For Business Partner Commitments - UKM_COMMITMENTS
 For Payment Behavior - UKM_TRANSFER_VECTOR
 the credit limits per segment for the BP: UKMBP_CMS_SGM
Configuration_Gui
de_CR_2016_S4HANA1602_EN.pdf

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Credit Management version 1.

0 Aaditya Bajoria (OTC, LE, CIN, GATP) Cognizant-426869

Don’t Copy File Data Page 1

Don’t Copy File Data Page 2

Below Transaction and report are not available in S/4 HANA

Credit management has moved from SD to FSCM in S/4 HANA.

SAP Financial Supply Chain Management (FIN-FSCM)

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Click on credit profile tab

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Choose Rule for

Risk Class can

Select what type of

Click on save button

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Click on Credit Segment Data, below screen appear.

Select the rule for

Credit limit Data

Credit Exposure gets

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Create Credit Segment

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Click on display formula

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User can create his own formula based on below parameters

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Create our own rule , click in formula editor

Create Risk Class

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Click on new created rule and select checks option.

Here User can select the task as per busienss requiremnt.

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For ex- user can horizon days

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Create credit segment but it should be similar like earlier segment.

Assign credit control area to credit segment.

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Assign credit control area to sale area.

Define automatic credit control (OVA8)

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Create Risk categories

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5. Setup WS-RM or PI system

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System and Component Landscape

 Service Interfaces: Overview

Set Up Web Service Configuration

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Settings in a one-system scenario

Choose one of the following navigation options:

Please use below link for more deatil WS-RM

We need to setup below service in WS-RM

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Click on Web Service confirguration.

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If there is no with WS-RM or PI systrem.

System will show below message.

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