Unit 4Process Integration

Unit 4: Process Integration in SAP Credit ManagementContentsMaster Data IntegrationCredit Exposure Determination in SDTiming the credit checkCredit Management Configuration in SD and FI-ARCredit Check & Exposure Update in SD Sales Order ManagementCredit Exposure Update in FI-ARBlocked OrdersCredit Case

ERP and FSCM Master DataCVI builds Credit/ Collection Master and Contact Person

Synchronous Credit Check when creating new or changing existing sales orders.Credit checks can also be requested by batch programs:RVKRED06 Recheck blocked ordersRVKRED08 Recheck orders when credit horizon reachedRVKRED09 Recheck orders prior to delivery creationCredit check rule assigned in the credit profile drives which credit checks have to be appliedStatus overview screen in the SD order Use Report UKM_LOGS_DISPLAY to see detailed credit check log VKM1 can be used to recheck credit or release an orderbut R/3 Credit Management fields in VKM1 are not filled by SAP Credit ManagementCredit Check in SD

Credit Master Data in SD Sales DocumentERP Process:Determine Credit Control AreaDetermine Credit Account from Master Data of Payer partnerImport credit master data from Credit Master into Sales OrderFSCM Process:Determine Credit Control AreaDetermine Credit Account = Payer partnerImport Risk Class from Credit Profile into Sales Order

FieldDescriptionERP SourceFSCM SourceGRUPPCustomer Credit GroupCredit Master DataNot availableSBGRPCredit Rep GroupCredit Master DataNot availableCTLPCRisk CategoryCredit Master DataRisk Class from Credit Profile

Credit Check in SAP SalesRisk Class(Can send commitment on blocked order)

Updating Commitment Data(Can be real-time)

Commitment Categories100 - Open Orders200 - Open Items From FI300 - Exposure from Special Liabilities400 - Open Delivery Value500 - Unposted Billing Documents

Credit Exposure Update from FI-ARSAP Credit ManagementReport:UKM_TRANSFER_ITEMSSAP PICredit ExposureFI-ARFI Open ItemsReport:UKM_TRANSFER_VECTORBADI:UKM_FILL-FILL_FIELDSe.g. define liability cat.BADI:UKM_FILL-FILL_VECTORe.g. calculate DSOCredit VectorBADI:UKM_COMMITMENT_PUSH-CONVERT_INBOUNDsynchronous callasynchronous callBADI:UKM_VECTOR_PUSH-CONVERT_INBOUND(Can be real-time)

Credit Exposure Update from FI-ARFI open items can be exported periodically by running reportUKM_TRANSFER_ITEMS - Transfer open items-Business Partner-Segment-Amount-Due Date-Key-Liability Category

Normal mode:All open items that are not yet transferred to the credit management are collected in a collective table.

Rebuild mode:The report rebuilds the collective table and transfers all current open items.(Can be real-time)

Credit Exposure Update from FI-ARFI open items can be exported real-timeBADI Implementation: UKM_R3_ACTIVATE-FI_AR_UPDATE_MODE

method IF_EX_UKM_R3_ACTIVATE~FI_AR_UPDATE_MODE.e_direct_update = X.endmethod.

Credit Vector Update from FI-ARCredit Vector (FI Summary) is exported daily by running reportUKM_TRANSFER_VECTOR - Transfer credit vector Dunning Level Dunning Amount Last Payment / Date Oldest Open Item DSO (Days Sales Outstanding*) Payment Behavior Amount (e.g. acc. interest calculation*) Highest A/R Balance in the last 12 Month* Total Sales Volume in last 12 month* Gross Total of Cleared Items with Cash Discount Not Taken* Gross Total of Cleared Items without Cash Discount Loss* Av. Arrears with cash discount payments* Av. Arrears without cash discount payments*

Normal ModeOnly data in the credit vector pool is transferred to SAP Credit Management

Rebuild modeRebuild credit vector pool by analyzing a customers account and transfer it to SAP Credit Management*additional project effort needed

Credit Vector Update from FI-ARRecord types in table UKM_TRANSFER_ARV

00Trigger Entry Only - All Portions Are Calculated01Oldest Open Item02Last Payment03Highest Dunning Level04Key Figure/Amount with Currency05First Customer Enhancement

Blocked OrdersNotification to Credit ManagerRelationship of Credit Manager to Blocked OrdersBlocked Order ReleaseAffect of Blocked Orders on Exposure

Notify Credit Manager When Order is BlockedOption 1: Use Credit EventingActivity REQUEST (Credit Check)Event Type CF (Credit Rejected)Follow-on Process SET_FLAG (Set Special Attention indicator)Follow-on Process WF (Workflow) Read Credit Analyst Business PartnerOption 2: Add Credit Analyst to Order HeaderEnhance BADI BADI_SD_CM method GET_MASTER_DATARead Relationship Record for Credit Analyst and import (or translate) Credit Analyst BP number to ERP Credit Rep GroupOption 3: Use new Credit Manager WorkCenterRequires Enhancement Pack 2 (or later) for ECC 6Requires Portal or NetWeaver Business ClientReviewed in Unit 6

Blocked Order ReleaseFSCM replies to the PI message requesting a credit check with PASS or FAIL.The requesting ERP system takes action (such as blocking the order) when a FAIL response is received.The release function for blocked orders is executed in the requesting ERP system.In an SAP system this is transaction VKM1

Credit Case

A credit case is used for structured processing of internal requests to review credit limit.Credit Case is based on the SAP Case Management (SCASE)A credit case containsMajor customer master data & credit profileStatusOrganizational dataDocuments OrdersNotesInboxA credit case can be assigned to different processors

Credit Case

Purpose of credit case:Facilitate communication between different organizations (for example, sales and finance)Facilitate the process from recommendation to final approvalCreate a record of the decision process including any supporting documents

Example: Create Limit Review RequestSales Assistant enters credit limit review request (credit case)Need more information?Send back credit case with financial dataApprove / reject RequestyesManually / automatically assign Credit ManagerSend workflow item to Credit ManagerSend credit case to Financial AnalystChange Limit in Master DataCustomer exceeds frequently credit limitSend workflow item to Financial AnalystClose RequestSend notification to Sales Assistant (Workflow)no

Credit CaseHighlighted fields are filled in automatically from business partner.

Routing Case for ApprovalsRouting can use Workflow.Process Route is activated in case definition and in Function Profile.Routing can use the Processor function.Process Route is de-activated in case definition and in Function Profile.

Information automatically uploaded from the credit profile Credit Risk Class Scoring Current Credit Limit Credit Limit Current Exposure Usage of Credit Limit %Manually entered by the Credit Manager / Requestor Customer & SegmentApproved Credit Limit Requested Credit LimitStatusExpected Sales VolumeIntegration with Credit Profile

Customizing for Credit CaseThe IMG for Credit Management does not have any entries to customize the Credit Case.Customizing can be done in the IMG under:Financial Supply Chain Management > Dispute ManagementSAP NetWeaver > Application Server > Basis Services > Case ManagementRMS ID is UKM_CREDIT_CASE

4-*4-*4-*CVI configuration maps customer account groups to business partner groups.Customer contacts are not represented by account groups therefore the determination of the proper business partner group and number range is determined differently. The collection contact persons BP group is identified as the Internal Standard Grouping.4-*The credit management The credit check rule can be also determined at run time within SDResult of the credit check can be seen in the status overview screen of the SD order The Report UKM_LOGS_DISPLAY displays the result of each credit check step and the values that are used in the check VKM1 can be used if a credit control are is set up for the corresponding FI-AR customer4-*1. When creating / changing the sales order, creating / changing a delivery or posting a goods issue, first the current risk category of the customer is queried in SAP Credit Management. 2. The credit check in SAP Credit Management is called, if the automatic credit control in set accordingly in the SAP Sales components. (A corresponding configuration entry must be present for the credit control area of the current sales document which is assigned to the credit group of the sales document and the queried risk category). 3. SAP Credit Management conducts the credit check in accordance with the check rule stored in the credit profile and sends the check result back to the sales system. 4. The credit status of the sales document is set to "blocked" in the event of a negative result (depending on the configuration in the automatic credit control in the SAP Sales component). Using report UKM_LOGS_DISPLAY, it is possible to display a detailed credit check protocol. The protocol shows every credit checking step for every credit segment according to the check rule stored in the customer master data. With transaction VKM1, it is possible to display and release blocked orders. 6. + 7. After the sales document is stored in the database (as released), the commitment is updated correspondingly in SAP Credit Management. The credit check is performed synchronously, updating the commitment is asynchronous. 4-* Open Orders are updated when the order is saved. The value is determined by multiplying the confirmed quantity of each order line by the credit price determined in the pricing procedure. Open Deliveries are updated when the delivery is created. The Open Orders value is reduced by the amount of open deliveries. Open Invoices are updated when the billing document is created and passed to FI-AR. The Open Deliveries are reduced. If the real-time update is activated, then Open Invoices are only updated if the billing document is created but not posted to FI-AR. Open Items are updated when the SD billing document is posted to FI-AR. Open Invoices (if updated) are reduced.4-*These entries are only used in reporting. The actual values are determined by the BADIs that create the exposure from SD and A/R. Unless you change the BADIs these values should not be changed.4-*Open items and credit vectors are transferred frequently (planned jobs)PI Server is needed even if you run both applications (FI-AR and SAP Credit Management) in one system

4-*Business Partner is derived from the FI-AR customer4-*Business Partner is derived from the FI-AR customer4-*4-*If there is any activity for a customer in FI-AR a 00 record is written to table UKM_TRANSFER_ARV.The BADI code uses the 00 record to calculate other types of data and then write the appropriate record types to the table (01 to 05).A custom program can write records to the UKM_TRANSFER_ARV table.The report UKM_TRANSFER_VECTOR reads the records from table UKM_TRANSFER_ARV and builds the PI message to pass the vector to FSCM.4-*4-*The credit case helps companies to process credit limit requests that are sent from the sales organization to the credit managementA credit case can trigger workflow items by using the process route functionalityThe credit case can be easily enhanced with own customer-specific fields4-*The credit case helps companies to process credit limit requests that are sent from the sales organization to the credit managementA credit case can trigger workflow items by using the process route functionalityThe credit case can be easily enhanced with own customer-specific fields4-*This chart illustrates a possible process for a credit limit application

4-*4-*4-*When a credit case is created, credit master data is automatically imported into the credit case. BADI SCMG_STORE_C, implementation UKM_STORE_CThe same BADI implementation updates the credit limit in the business partner when the case status has the system status 008 (confirmed).

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