Professional Documents
Culture Documents
Credit & Receivables Risk MGMT
Credit & Receivables Risk MGMT
Credit & Receivables Risk MGMT
Credit Management
Credit Management is a cross-functional activity between SD and FI
SD
Sales People want to sell
C R E D I T
FI
FI People want to reduce risk
2
Credit/Risk Process
Credit Management
Cust: Health Express Risk: Medium Credit Limit: $10,000 Ttl. Commit: $6,000 Blocked document list or E-mail (opt.) Review situation Release order Pick, pack & ship order Bill Customer
SD, FI
Order: 5923 Order Amount: $5,000 Credit Limit Exceeded Block order E-mail to credit rep. (opt.)
Credit control (blocks) can be applied at order entry, delivery creation or goods issue
3
2005 by SAP AG. All rights reserved.
Total Commitments
Open Credit Limit order value Open Delivery items not yet billed delivery value Open Not transferred to FI (optional) billing value Special Short payments, down payments commitments Receivables
Unpaid bills
4
2005 by SAP AG. All rights reserved.
Credit Limit
Open order Open order Open delivery value Receivables
Open order
Dynamic Check
Static Check
Credit Horizon
5
2005 by SAP AG. All rights reserved.
7
2005 by SAP AG. All rights reserved.
8
2005 by SAP AG. All rights reserved.
Health Express
Transactions with each company code apply to the single credit limit set for the single credit control area
10
2005 by SAP AG. All rights reserved.
Exchange Rates
Credit Control Area 1 Currency: USD Company Code 1 Currency: USD Sales Org.1 Company Code 2 Currency: EU Sales Org.2
Health Express
Health Express
Limit: $150,000
Receivables for Company Code 2 are converted from Euros to US Dollars when credit is checked
11
2005 by SAP AG. All rights reserved.
Customer
Risk Category
Credit group
When Credit is Checked Why Credit is Checked What the system does (warning, error)
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2005 by SAP AG. All rights reserved.
Receivables Types
Credit and Procurement Cards
Letters of Credit
Guaranteed Payment
Transactions using these payment methods/guarantees do not affect Total Commitment
Credit Management
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2005 by SAP AG. All rights reserved.