Credit Management

SAP CRM 7.0Detailed View

SAP CRM 7.0 – Sales

Credit Management

© SAP 2007 / Page 2

1. Credit Check2. Credit-Rating Check3. Further Information

Content

Credit Management

Credit checks are done using a remote function call (RFC) to contact another back-end system (R/3 or another credit management master system).The standard credit check in CRM calls up the automatic credit check in SAP R/3.The customer’s credit standing is updated based on the business transactions.

Credit management enables companies to limit exposure to financial risk via customer credit checks that can be performed during transactional processing.

Credit Check

Procedure of credit check CRM – R/3:

A credit check is triggered when saving a document (for example,sales order) or when choosing the credit check button.CRM calls up the credit check and sends the necessary information to R/3 which again returns the results based on the payer’s credit standing.CRM displays an overall credit status in the header, sets credit status at item level, and enters messages in the application log (including credit limit overrun).If a credit limit is exceeded, the system blocks subsequent document processing with status “credit check not O.K.”The blocked documents can be sent through work flow to the employee responsible for clearing them.The credit release can be initiated both from within CRM or fromwithin R/3.Possibility to check credit with either requested or confirmed quantity.

Exception: If sales order already is credit blocked, any new credit check is carried out with requested quantity, even if check with confirmed quantity is customized

Process Flow

Order

Item 1Item 2Item 3

SAP CRM R/3 or OLTP1) You create an order in CRM.

2) When you save, or when you choose the

Credit check icon, CRM calls up the credit check in SAP R/3 or in your OLTP system.

Automatic credit check

3) R/3 sends a response to CRM.

4) CRM sets overall status at header level.

DeliveryWork-flow task

6) You can continue processing “Credit check OK” documents.

or X

or 5) Error-free documents are replicated in R/3.

“Credit check not OK” is not an error.

7) “Credit check not OK” X documents are blocked for further processing and sent, via Workflow, to employee responsible for reviewing them. He can release or cancel individual items.

X

X

X

X

Credit Status – WebClient UI

Update of Credit Information

Update of customer credit data in R/3

Customer credit data is kept in R/3 (for example, credit limit granted to the customer and credit exposure).

A credit exposure update can either be triggered by R/3 SD transactions (when using R/3 SD Billing) or by CRM transactions (when using CRM Billing).

The BADI interface can be used to include nonbillable transactions such as sales contracts or quotations in calculation of credit exposure.

Credit-standing information in other OLTP systems can be updated using the BADI interface.

Customizing Setup (1)

Automatic credit check and update of credit exposure based on R/3 transactions:

Transaction type includes credit check

Item category is relevant for billing in R/3 and has credit group assigned

Credit group setup includes a rule for automatic credit check and an indicator for no credit update

Customizing Setup (2)

Automatic credit check and update of credit exposure based on CRM transactions:

Transaction type includes credit check

Item category is relevant for billing in CRM and has credit group assigned

Credit group setup includes a rule for automatic credit check and an indicator for credit update

Credit Recheck

Transactions with credit blocks can be rechecked and subject to further processing actions

Batch report can trigger the following actions:Repeat credit check Remove credit block Cancel transactions with credit block

Available selection parameters:Transaction typePayerOrganizational dataTransaction number

Credit Management

Possibility to check credit with either requested or confirmed quantityException: If sales order already is credit blocked, any new credit check is carried out with requested quantity, even if check with confirmed quantity is customized

Credit Management and Credit Rating Check

Maintenance of credit groups

Credit Gr.0102

DescriptionStandard OrderStandard Order

Check0101

Credit QtyRequested QtyConfirmed Qty

CredUpd Reduce Confirmed Qty

Reduce Confirmed Quantity and Credit Check Quantity

© SAP 2007 / Page 12

Content


Credit-Rating Check – Overview

Establish whether the customer is capable of meeting financial obligations during sales transaction processing as soon as a business partner is entered

Minimize risks for payments without having to check outstanding receivables in financial accounting system

Determine the customer’s credit rating according to:Ratings maintained in business partner master dataRatings from external providers (for example, D&B, S&P, and SCHUFA)

Credit-rating checks can improve the financial security of sales operations by running customer checks at an early stage during order entry.

Credit-Rating Check Functionality

Classify the payer (maintained in the order header) according to ratings maintained in the business partner master data

Execute customer-specific functions based on the result of the check every time the payer on the header of a sales transaction is changed or entered for the first time

Trigger the following actions based on credit-rating check:Write message to application log as information for the employeeSet user status at the header or item level to prohibit further actions (for example, ATP check, credit limit check, and delivery)Execute a customer-developed program – BADI implementation (for example, trigger work flow for specific rating)

Automatically start the credit-rating check in a sales transaction when:A new payer is entered or determined via partner determinationA new item is entered

A comprehensive set of features is offered to compliment the credit-rating check process.

Credit-Rating Check

Credit-rating check process flow:

System automatically starts the credit-rating process in a business transaction as soon as a new payer is entered or determined, or a new item is added.System determines the rating profile and the corresponding rating procedure according to the transaction type of the order.System checks whether a rating exists for the payer based on the sequence of the rating procedure.System reads the business partner master data of the payer in order to determine the rating that is valid for the order date.

If no rating is maintained for the payer, then the system reads the rating for the next highest partner in the business partner group hierarchy.

System writes the message provided for the rating to the application log.System sets the user status (at header or item level).System executes a BADI implementation, if one has been defined in customizing.

© SAP 2007 / Page 16

Content


© SAP 2007 / Page 17

Further Information

SAP CRM - Roll-Out Maphttps://portal.wdf.sap.corp/go/crm-rollout-map

SAP CRM - Ramp-Up Knowledge Transfer (RKT)http://service.sap.com/rkt-crm

SAP CRM – Demo Portalhttp://crmportal.wdf.sap.corp:1080

SAP CRM – WiKihttps://wiki.wdf.sap.corp/display/SAPCRMHub/Home

SAP CRM - Help Portalhttp://help.sap.com/crm

SAP Public Webhttp://www.sap.com/crm

© SAP 2008 / Page 18

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Credit Management