5/10/2019 Credit Management in S/4HANA vs FSCM Credit Management | SAP Blogs

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Monika Patel
June 7, 2018 3 minute read

Credit Management in S/4HANA vs FSCM Credit Management

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4 Likes 11,103 Views 6 Comments

I look forward to hear about your experience in working in s/4HANA Credit Management. Sharing below a
comparison of the solution, as per SAP Documents

The need of Credit Worthiness of the Customer, Credit Assessment and the Challenges in managing Credit
• Inconsistency in credit policy: No single source of truth and the information is spread across the
organizational systems. Hence within an organization, there is a possibility of a customer getting treated
di erently by di erent business units
• Cross-department collaboration: For Credit decision the information required is spread across various
departments and communication between sales, credit, and nance department. Getting this information and
processing the unstructured info is extremely time-consuming.
• Treatment of new customers: an organization does not have in-house score of a partner who is new
customers

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SAP Solution:
Historically SAP had two solutions for Credit Management : FI-AR Credit Management and SAP Credit
Management.
i.e. ECC FI-AR Credit Management & SAP FSCM Credit management.
The ECC Credit Management triggered thru SD using FI-AR is obsolete and no longer supported in S/4HANA.
In SAP S/4HANA, BASIC Credit management, based on technical foundation of FSCM Credit Management is
made available.
In SAP S/4HANA No additional license is required for using “BASIC” Credit Management solution even if it is
technically based on FSCM Credit management.
However to use additional functionality like scorecards, automatic determination of limits, work ow, integration
of external credit information, Client must acquire License. Lic. is Client speci c and related info needs to be
checked with Client and SAP respectively. *This blog focuses on the Functional and Technical features available
in S/4HANA Credit Management & FSCM Credit Management.

Key Aspects & Components of Credit Management

Business Partner : Business Partner (BP) is the defacto object used for Customer and Vendor object in
S/4HANA.
Credit Scoring : Score & Default Probability helps determine Risk-Class levels (Risk Class 1 : Invoice, Risk-
Class II : Check by Ext. Credit Agency, Risk-Class III : Cash on Delivery, Letter of Credit, Adv. Payment)
Credit Integration : Automatically populate Credit Bureau Data in Credit-Pro le tab of Business Partner, BP-
Role Credit-Mgmt. Standard interfaces for Credit Bureau are available in FSCM Credit Management.
Work ow : Events to monitor to perform automated actions or routes to Credit Analysts
Credit Checking : Select what type of Credit-Check to perform for this customer.

The key di erence between ECC Credit Management and FSCM-Credit Management are in areas of

“FI-AR” FSCM Credit S/4HANA Comments : System Conversion

Credit Management Basic Credit
Management Management

SINGLE- Cross system Credit ** Migration required from FI-AR

System Checks against Credit Management to Basic edition
Credit calculated ratings and of S/4HANA Credit Management.
Checks limits
against a
LIMIT you Few examples given below
determine
Deleted tables including
S066/S067 : SAP Credit
Management Con g. is created
based on existing FI-AR Credit
Con guration data

In case of new implementation for

existing SAP customers, need to
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understand the requirement and

con gure accordingly.

Master FI-AR Business Partner SAP Migrate Credit-Accounts from FD32

Data Account Business to UKM_BP
Partner

In case of new implementation for

existing SAP customers, need to
understand the DATA-MIGRATION
requirement.

BP role for Credit Management

* Choose a rule for calculating a
SCORE

*Risk-Class can be automatically or

manually set

* Check-Rule – Select what type of

Credit Check to be performed for
this Customer

FI Data FI-AR FI-AR, FI-CA, Others SAP

Business
Partner

Monitor Only for Distributed System Distributed Credit Exposure in FSCM is rebuilt.
Credit Simple Landscape (Multiple System
Exposure System FI, SD & CRM Landscape
Landscape systems) ; (Multiple FI,
(1xFI,1xSD); SAP & non-SAP SD & CRM
SAP System systems) ;
Only SAP & non-
SAP

Automated Not Available Credit Rule Engines Not Available * Details will be updated after
Customer checking S/4HANA 1709 Solution.
Scoring,
Ratings
and Limits

External Only thru Any XML based Not Available

Credit partner Credit Information in standard
Information products Service
(e.g. D&B)

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Work ow Only in SD Any Credit Event, Documented Documented Credit Decisions

Documented Credit Credit (DCD) created for blocked Sales
Decisions, Credit limit Decisions Orders
requests

Analysis Customer FIORI FIORI * Details will be updated after

FactSheets Smart Business Smart checking S/4HANA 1709 Solut
/HANALIVE, Business /
OLAP/OLTP(including HANA Live
BW content)

*
No XML messages are used : No
Commitment-updates are sent from
FI-AR to SAP Credit Management.
Instead a HANA view reads the AR
Exposure in real-time on the y
when Exposure is required in SAP
Credit-Management (For credit
worthiness check , for Customer
reports)Technical details to be
checked further and updated

S4HANA 1610, FSCM Credit Management help link

SAP S/4HANA 1709 FSCM Credit Management help link.

Regards

Monika

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Assigned tags

SAP S/4HANA | SAP Financial Supply Chain Management | SAP S/4HANA Finance | credit management | FSCM
Credit Management |

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By Shridhar Deshpande , Feb 10, 2019

Related Questions

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By Hassan Ghauri , Dec 18, 2018

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By Former Member , Jul 04, 2017

6 Comments

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Cecilia Gatto

August 31, 2018 at 1:19 am

Hi Monika,

Thank you for sharing that.

I wonder if you have checked release 1709. Also do you know if Disputes and Collections is included?

I can only see on scope item BFC under cloud but not under on premise.

Kind regards,

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Cecilia Gatto

Like (0)

Monika Patel | Post author

September 13, 2018 at 10:21 am

1709 – FSCM Disputes and Collections is included as part of S4 Solution.

Like (0)

Scheherezade Miquilena

November 22, 2018 at 9:58 pm

Good afternoon, I am presenting the following scenario: The Credit Exposure eld is not updated automatically
in the BP to which this may be due?

Thank you

Like (1)

Monika Patel | Post author

December 27, 2018 at 7:53 pm

Hi,

If the credit check is successful, then the system updates the credit exposure.

NOTE : However one point to notice –> The Credit exposure update works when there is con rmed quantity in
Sales order. If there is no con rmed quantity in the sales order, Credit-check will pass without blocking the
sales-order for Credit-limit nor will it update the credit-exposure. Once stock exists and quantity con rmed,
the credit exposure update will work ne.

At the implementation UKM_SD_FSCM_INTEGR1 there are three methods (

FSCM_COMMITMENT_UPDATE_ORDER, FSCM_COMMITMENT_UPDATE_DELVRY, FSCM_COMMITMENT_UP
DATE_INVOICE) which prepares credit data and send request to the FSCM-Credit Management (for update
data in the table UKM_ITEM).

The message is generated and sent using the method

cl_ukm_xi_facade_r3_50=>if_ukm_commitment_push_r3~push_commitment.

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Further you can check your con g as per blog

https://blogs.sap.com/2018/06/09/credit-management-necessary-settings-in-the-module-sd-s4-1709/

Regards,

Monika

Like (0)

Maurya Vijay

December 14, 2018 at 3:43 am

is biller direct also part of S/4 HANA?

Like (0)

Monika Patel | Post author

December 27, 2018 at 12:20 pm

Yes I do see Con g-settings for Biller Direct in S/4HANA

Like (0)

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