SAP FSCM Training Material

SAP FSCM – Financial Supply Chain Management

SAP FSCM |Financial Supply Chain Management 1


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Contents at Glance

1. SAP Financial Supply Chain Management

2. SAP Financial Accounting

3. SAP Sales Order Processing

4. SAP FSCM – Credit Management

5. SAP FSCM – Dispute Management

6. SAP FSCM – Collection Management

7. SAP FSCM – Biller Direct

8. SAP FSCM Reports

9. SAP FSCM Transaction Codes

10. SAP FSCM Frequently Asked Questions

11. The Authors Page



Table Of Contents

Unit 1 : SAP FSCM – Financial Supply Chain Management

1.1 SAP FSCM Introduction

1.2 SAP FSCM Sub modules

Unit 2 : SAP FI – Financial Accounting

2.1 Enterprise Structure

2.1.1 Company

2.1.2 Company Code

2.1.3 Assign Company Code to Company

2.1.4 Credit Controlling Area

2.1.5 Assign Credit Controlling are to company code

2.2 General ledger Accounting

2.2.1 Define Chart of Accounts

2.2.2 Assign Company Code to Chart of Accounts

2.2.3 Define Account Groups

2.2.4 Define Retained Earnings Account

2.2.5 GL Master Records

2.2.5.1 Create reconciliation account for Sundry Debtors.

2.3 Accounts Receivable

2.3.1 Define Account Groups

2.3.2 Define Number Ranges

2.3.2 Assign Number Ranges for Account Groups.

2.3.3 Customer Master Records

2.3.3.1 Create Customer Master record in Centrally

2.3.4 Define Terms of Payments

2.3.5 Dunning

2.3.5.1 Define Dunning Procedure

2.3.5.2 Assign Dunning Procedure to company Code

Unit 3 : SAP FSCM – Credit Management

3.1 Business partner

3.1.1 Define Number ranges

3.1.2 Define Grouping and assign number ranges

3.1.3 Define BP role

3.1.4 Define BP role grouping

3.2 Credit Control area setting

3.2.1 Define Credit Controlling Area



3.2.2 Assign Company Code to Credit Controlling area

3.2.3 Assign permitted Credit Controlling areas to Company Code

3.2.4 Define risk Categories

3.2.5 Define Credit Representative Group

3.2.6 Create Credit Representatives

3.2.7 Define field Groups

3.2.8 Assign Fields to Field Groups

3.2.9 Define Credit Groups

3.2.10 Assign Sales document and delivery documents

3.2.11 Define automatic Credit Control

3.3 Credit Management

3.3.1 Overview SAP Credit Management

3.3.2 Basic Settings

3.3.2.1 Define Credit Controlling are

3.3.2.2 Assign Company Code to credit Control Area

3.3.2.3 Technical architecture of SAP Credit Management

3.3.3 Business partner

3.3.4 Credit limit

3.3.5 Credit Rating

3.3.6 Credit Risk Classes

3.3.7 Integration with Accounts Receivable & Sales and Distribution

3.3.7.1 Define Credit Segment

3.3.7.2 Assign Credit Control Area and credit Segment

3.3.7.3 Define Credit Exposure Categories

3.3.7.4 Define Recon a/c Without Credit Management Update

3.3.8 Reporting

3.3.9 Mass Activation

3.3.10 Enhancements

3.3.11 Easy Access

3.3.11.1 Master Data

3.3.11.2 Master Data Mass Change

Unit 4 : SAP FSCM – Dispute Management

4.1 Dispute Case Processing

4.1.1 Create RMS ID

4.1.2 Element Types and Case Record Model

4.1.3 Create Element Type

4.1.4 Create and Process Case Record Model

4.1.5 Create Attribute Profile

4.1.6 Create Values for Attribute “ Escalation Reason “



4.1.7 Create Profile for case Search

4.1.8 Configure Text IDs

4.1.9 Create Text Profile

4.1.10 Create Status profile

4.1.11 Number Ranges for Case

4.1.12 Define Case Types

4.1.13 Define Derivation of Element Types

4.1.14 Define Automatic Status Changes

4.1.15 Define Document Category for Attachments to Dispute Cases

4.2 Process Integration with Accounts Receivable Accounting

4.2.1 Activate Process Integration for SAP Dispute Management

4.2.2 Define Default Values for Creation of Dispute Cases

4.2.3 Automatic Write-off of Dispute Cases : Edit settings

4.2.4 Activate Assignment of Open Credits and Payments

4.2.5 Activate Assignment of open Credits and Payments

4.2.6 Enter Accounting Clerk Identification Code for Customers

4.2.7 Correspondence

4.3 Easy Access

4.3.1 Creation of Dispute Case

4.3.2 Manage Dispute Case

4.3.3 Closing of Dispute Case : Fully and partial Payments

4.3.4 Clearing of Dispute Case through Credit Memo

4.3.5 Automatic Write – off of Dispute Case

Unit 5 : SAP FSCM – Collection Management

5.1 Basic Settings for Collection Management

5.1.1 Define Company Codes for SAP Collections Management.

5.1.2 Collection Strategies

5.1.3 Organizational Structure : Segments, Collection Profiles, Collections Groups etc.

5.1.4 Business Partner BADI’S discussion

5.1.5 Promise to pay: Create RMS ID, Create Status Profile etc.

5.1.6 Define Number range Interval for case

5.1.7 Define Case Types

5.1.8 Customer Contacts: Define Result of Customer Contact.

5.1.9 Resubmit : Define Resubmission Reason.

5.1.10 SAP Dispute Management Integration:

5.1.11 Worklist : Define Distribution Procedure

5.2 Integration with Accounts Receivable Accounting

5.2.1 Activate SAP Collections Management

5.2.2 Activate/Deactivate Standard Implementation for mapping in FI-AR

5.2.3 Activate Distribution per Company code



5.2.4 Make Settings for Promise to apy

5.3 Business Partner Settings

5.3.1 Define Grouping and assign Number Ranges

5.3.2 Business partner Settings

5.3.3 Synchronization Control : Activate Synchronization Options

5.3.4 Activate PPo requests for Platform Objects in the Dialog

5.4 Easy Access

5.4.1 Transfer of Data from SAP to FSCM collections Management

5.4.2 Generation of the work List.

5.4.3 My work List

5.4.4 Supervisor – All work list

5.4.5 Promise to pay

Unit 6 : SAP FSCM – Biller Direct

6.1 Biller Direct Overview

6.1.1 Basic Settings

6.1.2 Process Integration With Accounts Receivable Accounting

6.1.2.1 Release Credit Cars

6.1.2.2 Edit payment Methods

6.1.2.3 Set Account Determination for Credit Cards

6.1.2.4 Assign Text ID

6.1.2.5 Define Entries for the Logging of the Activities of We users

6.1.2.6 Define Partial Payment and currency

6.1.2.7 Define Payment Block for release Process

6.1.2.8 Define Reference user

6.1.3 Easy access transactions

6.1.3.1 Customer Portal Administration

6.1.3.2 Define for the Bill receiver

Unit 8 : SAP FSCM – Reports

Appendices

1. Frequently Asked Questions 2. About Authors 3. Index



Unit 1 : SAP FSCM – Financial Supply Chain Management

Definition

Financial Supply Chain Management is designed to optimize the financial supply chain with the aim of maximizing and retaining long-term profits. Financial Supply Chain Management (FSCM) is therefore an integrated approach to increasing the transparency, control, and supervision of all processes linked to the flow of capital, the result of which is (for example) a reduction of working capital, an increase in cash flow projection, and a reduction of process costs.

SAP Financial Supply Chain Management as part of mySAP ERP consists of different FSCM components, which can be used to optimize the financial supply chain either independently of one another or in combination with one another.

1. SAP Credit Management 2. SAP Biller Direct 3. SAP Dispute Management 4. SAP Collection Management

1. SAP Credit Management

SAP Credit Management is a component of SAP Financial Supply Chain Management. SAP Credit Management provides functions for integrating external credit information, scoring, categorizing new and existing customers on the basis of their credit data, and converting this information into quick credit decisions. SAP Credit Management allows organizations to monitor and control their customer's credit risk in one central system. SAP Credit Management is particularly suitable for handling credit management processes in extremely distributed system landscapes.

2. SAP Biller Direct SAP Biller Direct is a component of SAP Financial Supply Chain Management, and along with SAP Biller Consolidator provides an SAP solution for Electronic Bill Presentment and Payment (EBPP). SAP Biller Direct allows organizations to set up electronic billing, electronic payments and integrate customer service and financial management using an Internet portal. SAP Biller Direct supports the entire communication process, from presenting the bill to clarifying discrepancies and reconciling accounts and payments.



SAP Biller Direct is a Java-based application, which allows organizations to work closely together with their customers and partners

3. SAP Dispute Management SAP Dispute Management is part of SAP Financial Supply Chain Management. SAP Dispute Management provides functions to process discrepancies between organizations and customers regarding the customer's financial obligation (in other words, the dispute case). It enhances the following logistical process chains in the stage between billing and payment, should discrepancies arise with the customer:

> Customer order – Delivery – Billing – Payment > Contract – Service provision – Billing – Payment

4. SAP Collection Management

According to Meta Group, Collections Management is customer-specific receivables management. SAP Collections Management allows you to select and prioritize customer accounts, display and process receivables for each customer account, and enter promises to pay. Processing is fully integrated with SAP Dispute Management and SAP Accounts Receivable Accounting.



Unit 4 : SAP FSCM – Credit Management

SAP Credit Management provides tools to evaluate the creditworthiness of customers using internal

rating policies and external credit data, and enables quick and consistent credit decisions.

Organizations can use SAP Credit Management to reduce delays in payments, non-payments, and

process costs, as well as to improve relations with their top customers.

SAP Credit Management 1 Overview 2 Credit Master Data 3 Process Integration 4 Credit Rules Engine 5 External Credit Information 6 Reporting & Mass Changes 7 Integration of SAP BW and SAP Portal 8 Architecture

1. Overview

SAP Credit Management is a component of SAP Financial Supply Chain Management. SAP Credit Management provides functions for integrating external credit information, scoring, categorizing new and existing customers on the basis of their credit data, and converting this information into quick credit decisions. SAP Credit Management allows organizations to monitor and control their customer's credit risk in one central system. SAP Credit Management is particularly suitable for handling credit management processes in extremely distributed system landscapes. Credit Management Features

Credit limit management Implementation of an organization-wide credit policy Central management of credit limits in a distributed system landscape

Credit case Central, electronic creation of credit limit applications Status and result monitoring of credit limit applications

Credit rules engine Categorization of customers using valuation rules Automatic calculation and assignment of customer-specific scores and credit limits Check rule for credit decisions that are relevant to an order (order check)

Credit information Interface for external credit agencies



Input parameters for scoring formulas SAP BW content

Credit manager portal Role-based access to credit management information and analyses

Configuration Steps in Credit Management

1. Master Data

1.1 Credit Segment

Definition

Credit segments are required for calculating the credit limit and enable you to carry out detailed

checks at business partner level.

When you define a credit segment, you also decide on each currency in which all credit-relevant

checks are to be carried out. Define the credit segments relevant for your company.

Configuration

Manu Path IMG FSCM Credit Management Credit Risk Monitoring Master Data Create Credit Segments

T Code

Step 1 :

1.2 Define Rating Procedure :

Definition



define the rating procedures that you can use to process external credit information for your

business partners. You can use all of the ratings available for a business partner to calculate the

score.

There are two external and one internal rating procedure

Configuration

Manu Path IMG FSCM Credit Management Credit Risk Monitoring Master Data Create Credit Segments

T Code

Step 1

1.3 Define Credit Customer Groups :

Category for grouping business partners; defined according to user requirements.

This category is used as a selection criterion in reporting and during the creation of work lists.

Example

Possible customer credit groups are:

Domestic and foreign customers

Regular customers

Insured customers

Configuration

Manu Path IMG FSCM Credit Management Credit Risk Monitoring Master Data Define Credit Customer Groups

T Code



Step 1 :

1.4 Define Formula

Using the formula definition for the score calculations you define the value areas for the score. You can define these as required - both the form (numerical or alphanumerical) and range. If you use numerical score values, make sure that the formula result only outputs whole numbers for the score.

To define the formulas, use the SAP Formula Editor. In SAP Credit Management, the functions of the formula editor have been enhanced. For more information about the additional functions, click here.

In addition to some attributes of the business partner (for example, region, date of birth), you can use additional fields in the formula editor. These are as follows for the formulas for calculating the credit limit:

1. Credit Segment 2. Currency 3. Score

Configuration

Manu Path IMG FSCM Credit Management Credit Risk Monitoring Master Data Define Formula

T Code

Step 1 :

SAPEVENT:DOCU_LINK/DS:TX.FIN_CR_FORMELEDITOR



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