Integration between SAP Credit Management and SAP

Collections Management
Purpose
This is a showscase for the integration between SAP Credit Management and SAP Collections
Management. The scenario shows how the import of a new external credit rating for a business
partner or the creation of a sales order affect the priority of that business partner on the collection
worklist.

The import of a new external rating will trigger the recalculation of the customer’s credit score. This will
lead to a new risk class assignement to this customer. The customer’s risk class is taken into account
in the respective collection rule: The higher the credit default risk the more valuation points a customer
gets in the collection strategy.

The creation of a sales order for the customer will increase his credit exposure in SAP Credit
Management. When the ratio between credit exposure and credit limit exceeds a certain level, the
respective collection rule in SAP Collections Management becomes applicable and additional
valuation points are added to the customer’s collection valuation.

In this scenario one role is involved:

Credit Manager (User: Accountant3)

Prerequisites
It is recommended to work through the general demo scripts of SAP Credit Management and SAP
Collections Management beforehand in order to get a good understanding of the overall functionality in
these two areas. This script focuses only on the integration aspects.

System Access Information

.1 Choose the tab page in the Demo Database. An overview of all supported
global and US demo landscapes will be displayed.
.2 Log on to an IDES Corporate Sales System for the ERP Central Component 6.0 (e.g. DE3,
client 800).

Users
Predefined User (Role) Password Component
ACCOUNTANT3 WELCOME mySAP ERP

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Process Flow of Demo

Process Overview
During this process you will simulate a collection strategy which contains the collection rules
CR00000001 ‘Risk Class’ and CR00000007 ‘Credit Limit Utilization’ for a business partner. You will
import a new external credit rating. Therefore the business partner’s risk class will be changed by the
system. You will simulate again the collection strategy to see how the changed risk class affects the
collection strategy valuation. Then you will enter a sales order for the business partner. This will
increase the business partner’s credit exposure. Finally you will simulate the collection strategy for the
business partner a last time.

1. Check the business partner in Credit Management

2. Simulate collection strategy I

3. Import external rating for business partner

4. Simulate collection strategy II

5. Create sales order

6. Simulate collection strategy III

Check business partner in Credit Management

Use

You check if the business partner master shows suitable data, so that the subsequent steps work as
expected. If nobody has demoed before in the system, the data will be fine and you do not have to
change anything.

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Procedure
1.) Log on to the system (see above system access information)
2.) Select the menu path Accounting  Financial Supply Chain Management  Credit Management
 Master Data  Business Partner Master Data (BP)
3.) Enter the following data:

Field Data

Business Partner CMS0000008

4.) Press Enter.

5.) Push button to turn off the locator (now you have more space available)
6.) Change to the role credit management business partner:

Field Data

Display in BP role Credit Mgmt. Business Part

7.) Click on Tab-Strip .

8.) You see the credit profile of business partner CMS0000008. Make sure that in the table ‘External
Credit Information’ for the ‘Rating Procedure’ D&B Cap the ‘Rating’ is ‘3A1’:

If not, please change it manually and follow the steps 8.1 – 8.3:

8.1) Press the button to switch to change mode.

8.2) Enter the value ‘3A1’ in the column ‘Rating’ and press ‘Enter’.
8.3) Press the button next to the field ‘Score’ to recalculate the score value.
8.4) Save the business partner. The risk class will be changed to ‘Low Default Risk’ by the
system.
8.5) Confirm possible information messages with ‘Enter’.

9.) Press the button

10.) Enter the following data:

Field Data

Credit Segment 3000 IDES US INC(Maintained)

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11.) Check that the ‘Utilization %’ is below 90%
12.) If the ‘Total Cr. Exposure’ displayed on that screen is increased by USD 899 the ‘Utilization %’
should exceed 90%. If necessary, adjust the credit limit appropriately.
13.) If you had to adjust the credit limit save the business partner.

Simulate collection strategy I

Use

You simulate the collection strategy for this business partner before any events relevant to SAP Credit
Management occur.

Procedure
1.) Select the menu path Accounting  Financial Supply Chain Management  Collections
Management  Current Settings  Strategies (UDM_STRATEGY)
2.) Press the button

3.) Select collection strategy ‘STRAT_CM’

4.) Take a look at the strategy: Valuation points are assigned depending on the business partner’s
risk class. Collection rule ‘CR00000001’ assigns 10 valuation points to the business partner if
the assigned risk class is ‘B’.

5.) Press the button to simulate the collection strategy.

6.) Enter the following data:

Field Data

Business Partner CMS0000008

Date today

7.) Press Enter.

8.) Confirm the ‘Display logs’ Popup by pressing Enter.
9.) You see that the priority for the of business partner CMS0000008 in the simulated work list is
‘Low’. Mark the business partner.
10.) Press the button to select the ‘Valuation according to Collection Strategy’.

11.) The total valuation should be 10 points.

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 12.) Leave the transaction

Import external rating for business partner

Use

You import manually a new external rating for the business partner master. This will change the
internal scoring. The change of the internal scoring will lead to a changed risk class in Credit
Management.

In a productive environment the import of the external scoring will be predominantly done by an
automated mass transaction. In this example we will do it manually.

Procedure
1.) Select the menu path Accounting  Financial Supply Chain Management  Credit
Management  Master Data  Business Partner Master Data (BP)
2.) Enter the following data:

Field Data

Business Partner CMS0000008

3.) Press Enter.

4.) Push button to turn off the locator (now you have more space available)
5.) Change to the role credit management business partner:

Field Data

Display in BP role Credit Mgmt. Business Part

6.) Click on Tab-Strip .

7.) Press the button to switch to change mode.

8.) Mark the entry with the rating procedure ‘D&B Cap’:

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 9.) Press the button
10.) After some seconds the rating ‘2A2’ will be imported from the Dun & Bradstreet database.
11.) Press the button next to the field ‘Score’ to recalculate the score value.
12.) Save the business partner. The risk class will be changed to ‘Medium Default Risk’ by the
system.
13.) Confirm possible information messages with ‘Enter’.

Result

You have imported a new external rating for the business partner. This lead to an adjusted score value
for the business partner. This triggered a new risk class assignment. The changed risk class will be
relevant for the result of collection strategy.

Simulate collection strategy II

Use

The risk class assigned to the business partner in Credit Management was changed by the system.
Now you will see how this affects the collection priority. Therefore you simulate a second time the
collection strategy for this business partner.

Procedure
1.) Select the menu path Accounting  Financial Supply Chain Management  Collections
Management  Current Settings  Strategies (UDM_STRATEGY)
2.) Press the button

3.) Select collection strategy ‘STRAT_CM’

4.) Take a look at the strategy: Valuation points are assigned depending on the business partner’s
risk class. Collection rule ‘CR00000001’ assigns 20 valuation points to the business partner if
the assigned risk class is ‘C’.

13.)Press the button to simulate the collection strategy.

14.)Enter the following data:

Field Data

Business Partner CMS0000008

Date today

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 15.)Press Enter.
16.)Confirm the ‘Display logs’ Popup by pressing Enter.
17.)You see that the priority for the of business partner CMS0000008 in the simulated work list is
‘Medium’. Mark the business partner.
18.) Press the button to select the ‘Valuation according to Collection Strategy’.

19.) The total valuation should be 20 points.

20.) Leave the transaction

Create sales order

Use

By entering a sales order for the business partner the respective credit exposure will increase. The
creditworthiness check will be passed, but the utilization will exceed 90%. This will have an effect in
Collections Management as we will see later.

Procedure

1.) Select in the menu path Logistics  Sales and Distribution  Sales  Order  Create.
2.) Enter the following data:

Field Data

Order type OR

Sales organization 3000

Distribution channel 10

Division 00

3.) Press ‘Enter’.

4.) Enter the following data:

Field Data

Sold-to-party

PO Number Any

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 Item 10

Material M-12

Order quantity 1

SU PC

5.) Press button to save the order.

Result

You created a sales order in the mySAP ERP system. The sales order passed the creditworthiness
check. However, the respective exposure for the business partner has been recorded in Credit
Management. The increased exposure will be relevant for the result of collection strategy.

Simulate collection strategy III

Use

The risk class assigned to the business partner in Credit Management was changed by the system.
Now you will see how this affects the collection priority. Therefore you simulate a second time the
collection strategy for this business partner.

Procedure
5.) Select the menu path Accounting  Financial Supply Chain Management  Collections
Management  Current Settings  Strategies (UDM_STRATEGY)
6.) Press the button

7.) Select collection strategy ‘STRAT_CM’

8.) Take a look at the strategy: Valuation points are assigned depending on the business partner’s
risk class. Collection rule ‘CR00000007’ assigns 20 valuation points to the business partner if
the credit limit utilization exceeds 90%.

21.)Press the button to simulate the collection strategy.

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 22.)Enter the following data:

Field Data

Business Partner CMS0000008

Date today

23.)Press Enter.
24.)Confirm the ‘Display logs’ Popup by pressing Enter.
25.)You see that the priority for the of business partner CMS0000008 in the simulated work list is
‘High’. Mark the business partner.
26.) Press the button to select the ‘Valuation according to Collection Strategy’.

27.) The total valuation should be 40 points.

28.) Leave the transaction

Result
You have seen how SAP Credit Management and SAP Collections Management can interact. Risk
class assignments and credit limit utilization can trigger specific collection rules. This enables
you to implement risk based collection strategies

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