SAP S/4HANA Migration

Factory-SD:

Simplification Items

SI Analysis & Handling

of Results

New Sales Features

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 Simplification Items

Sales & Distribution

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2270544 - S4TWL - Credit Management
What is changing?
• Credit Management (FI-AR-CR) is not
available as part of SAP S/4HANA. The
functional equivalent in SAP S/4HANA is
SAP Credit Management (FIN-FSCM-CR).
• Risk category -> Risk class maintained for
the whole business partner (not per
customer & credit control area).
• The credit checks carried out for a
customer depend on the assigned check
rule in the business partner transaction.
They do not depend on the risk class.
• All IMG activities for SAP Credit
Management are listed in Customizing
under the following path: Financial Supply
Chain Management > Credit Management.
• The credit limit check for sales document
types can only be specified as type D in
SAP Credit Management or can be left
empty (no credit limit check).
• Releasing blocked documents via Case
Management (documents the blocking
reason).
What is the impact to business?
• A.
A & B & C: There will be no change to your
business processes because of the system
conversion.
• A & C: However, some transactions become
obsolete and are replaced by new transactions.
• The credit limit check types A, B, and C are no
longer available.
• F.28/F.31/F.32/F.33/F.34/FCV1/FCV2/FCV3/FD24/
FD32/FDK43/ S_ALR_87012215/
S_ALR_87012218/VKM1-5 transactions are not
available in SAP S/4HANA
• FD32 is replaced by transaction UKM_BP/VKM1
is replaced by transaction UKM_MY_DCDS
Following Reports are not available in SAP
S/4HANA
RFARI020 - FI-ARI: Extract from credit master data
RFARI030 - FI-ARI: Import credit master data
RFDFILZE - Credit Management: Branch/Head
Office Reconciliation Program
RFDKLI*NACC Reports
RFDKLxx Reports
Target Release
2021
What are possible solutions?
Pre-Migration Activities
You are only using FI-AR-CR Credit
•2227014 (Financials)
Management in your source release.
•2227014 (SD)
• Using Transactions FD31/FD32/VKM1-4
• Function module UKM_IS_ACTIVE returns
space for flag E_ACTIVE and E_ERP2005. During Migration Activities
• Exposure data is stored and updated NA
continuously in database tables S066 and
S067.
B. You are only using SAP Credit Management
(FIN-FSCM-CR) in your source release
• You are using transaction BP or UKM_BP to
maintain credit account master data. Post Migration Activities
• Transaction UKM_CASE to process sales • Reviewing the migrated Customizing
documents.. is advisable afterwards.
• Function module UKM_IS_ACTIVE returns ‘X’
• For example, risk classes are now
for parameter E_ACTIVE and E_ERP2005.
C. You are using both Credit Management maintained once for a customer (for
solutions (FI-AR-CR & FIN-FSCM-CR) in your all segments) instead of maintaining
source release them per customer’s credit control
D.You are not using any of the Credit area.
Management solutions (Then this note is not
relevant for you)
Other Inputs
A&C: You need to migrate FI-AR-CR to FIN-FSCM-
Nothing to do, migration of Credit CR completely. This migration comprises several
Management is not needed. elements:

Business Benefit Word of caution  Configuration data

• Higher degree of automation, thanks to automatic calculation of credit •The credit check when changing critical fields has been removed from the  Master data
scores, risk classes and credit limits SD side.  Credit exposure data
•The payment guarantee-related Letter of Credit has been removed from the
• Credit events help the credit analyst to focus on exceptions during his  Credit decision data
SD side.
daily business Risk classes are now maintained once for a customer
Prerequisites for the migration to SAP Credit Management:
• Create a relationship from credit analysts to customers (for all segments) instead of maintaining them per
• Process of credit limit requests • You have completed all documents related to payment guarantee Letter customer’s credit control area.
• Documented credit decisions of Credit.
B: Migrating Credit Management is not needed.
• Higher / lower account relationship of business partners (adds up • You have completed the migration for Accounting.
Review of BadIs “UKM_R3_ACTIVATE” and
exposure of lower accounts on higher accounts) • Perform the recommended actions in the Task List PDF attached to this
© 2022 DXC Technology Company. All rights reserved. “UKM_FILL” is advisable. July 15, 2024 3
• Less redundant data (reading FI-data via HANA view) Note
• Review of BadIs “UKM_R3_ACTIVATE” and “UKM_FILL” is advisable.
 Credit management with FSCM

•SAP had two system solutions for credit management – one is credit management (FI-AR-CR) with Sales & Distribution and another with
financial supply chain management (FIN-FSCM-CR) which has more advanced functionalities. In S/4HANA, FIN-FSCM-CR is mandatory to be
used for credit management as stated in note 2270544.

• Sales order blocked for credit cannot be approved with ECC transaction code like VKM3. A case with ‘Documented credit decision’ DCD is
created in S/4HANA which needs to be reviewed and approved by a Credit analyst.

•Sales orders blocked in credit check are released through ‘Documented credit decision’ (DCD) in S/4HANA. SAP has further enhanced the
ccreation of DCD solution through Workflow in S/4HANA 1909 release.
•Credit check in SAP can be set to take place at the creation of sales order, delivery and at goods issue in a typical order to cash cycle. A sales
order is blocked for credit if the credit exposure exceeds the set parameters for credit limit / control for that customer and then a ‘Documented
credit decision’ DCD is created as a Case in FSCM in S/4HANA as in below image. Credit manager or Credit analyst decides whether to release
(or reject) the sales order for credit block.
•. In real life, this DCD should be approved by a credit manager / analyst i.e not by the person creating or working with sales order. With 1909
release , the task of creating the DCD is delegated to the generic workflow user (SAP_WFRT) to avoid the requirement of credit management
authorization to a sales person .

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THANK YOU

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