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GOWRESHANHARAN
Explorer
16,775

Introduction:


Credit Management is a process in which Company sells a product/service to customers on a credit basis. The company collects payments from customers at a later time, after the sale of the product. The amount of credit fixed by a company for a customer is called a credit limit. The customer can purchase the product from a company within the credit limit, and when the credit limit is crossed, the order is blocked by the system.

The creditworthiness and payment behavior of your business partners have an immediate effect on the business results of your company. Efficient receivables and credit management reduce the risk of financial losses and help you to optimize business relationships with your business partners. SAP Credit Management (FIN-FSCM-CR) supports your company in determining the risk of losses on receivables from your business partners early and in making credit decisions efficiently and in some cases automated. With SAP Credit Management (FIN-FSCM-CR) you can operate centralized credit management. The business systems connected (for example Sales and Distribution, Logistics Execution, and Financial Accounting) report the commitment of a business partner to SAP Credit Management.

Credit Limit Request:


Request for a change to the credit limit of a business partner in a credit segment.

                        You use the credit limit request if the credit limit is not to be changed immediately in the master data and requires a decision or approval process first. In most business cases customers need to apply for approval if any user increased the credit limit, this function will allow the financial manager to check and review the credit limit before it effects in the BP and will enable him to approve or reject the limit requested

Process Flow:


When you create a credit limit request, the system transfers some master data that exists for the business partner in SAP Credit Management to the credit limit request. This includes the score, risk class, and credit limit.

When you create or change a credit limit request, you can carry out the following actions:

    • Enter the credit limit requested.
    • Enter notes
    • Link documents

Forward credit limit requests to another processor for approval, whereby this processor can enter an approved credit limit that is different from the limit requested.

If a processor closes the credit limit request, this corresponds to a refusal. If he confirms the credit limit request, this is approval and triggers the update of the approved credit limit in the master data of the business partner.

Prerequisite:

 

Transaction Code: SU01


Before activating this function, you should first make sure that the Workflow user: SAP_WFRT is active and have the required standard authorizations

Click on Display. There You can find the user which was active.

Configuration Steps for Case Management Component:


SAP Credit Management uses the component Case Management as a technical basis for the processing of the following objects:

    • Documented Credit Decision
    • Credit Limit Request

In this Customizing activity, you can find a summary of the activities that you have to execute for this in the Case Management component.


Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management.

 

Step 1: Attribute profile


In this activity, you define which attributes you want to use for the credit limit request. You also define the display and maintenance properties of the individual attributes. If you also want to use customer-specific attributes for the documented credit decision in addition to the standard attributes.

Create Attribute Profile:

 

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management ->Create Attribute Profile.


Execute Create attribute profile.


Click on New Entries to create a new attribute profile for the Credit Limit request.


Fill in the following data shown in the below image. And click on save.

Attribute ProfileFIN_CRED
DescriptionSAP Credit Management
Table NameUKMCASEATTR00

 


Click on Attribute Group and fill in the following data shown in the below image and click on save.


Click on Assign Attribute and fill in the following data shown below table and click on save.

Attribute ProfileCase AttributeGroupRowColumnrequiredInvisibleDropCheck BoxNot ModifiableModifiable only on newlog
FIN_CREDCASE_TITLE111       
FIN_CREDCASE_TYPE121  X   X
FIN_CREDCATEGORY131  X   X
FIN_CREDCHANGED_BY1181    X  
FIN_CREDCHANGE_TIME1182    X  
FIN_CREDCLOSED_BY1191    X  
FIN_CREDCLOSING_TIME1192    X X
FIN_CREDCREATED_BY1171    X  
FIN_CREDCREATE_TIME1172    X  
FIN_CREDESCAL_REASON162  X   X
FIN_CREDEXT_KEY112    X  
FIN_CREDEXT_REF122      X
FIN_CREDFCR_APP_LIMIT1131       
FIN_CREDFCR_CURRENCY1112    X  
FIN_CREDFCR_CURR_LIMIT1111    X  
FIN_CREDFCR_EXPOSURE1141    X  
FIN_CREDFCR_EXP_VOLUME1151       
FIN_CREDFCR_PARTNER191X    X 
FIN_CREDFCR_PERC_USAGE1142    X  
FIN_CREDFCR_REQ_LIMIT1121       
FIN_CREDFCR_RISK_CLASS1102  X X  
FIN_CREDFCR_SCORING1101    X  
FIN_CREDFCR_SEGMENT192X X  X 
FIN_CREDPLAN_END_DATE171       
FIN_CREDPRIORITY151  X   X
FIN_CREDPROCESSOR172      X
FIN_CREDREASON_CODE132  X   X
FIN_CREDSTAT_ORDERNO161  X   X


Click on the save Button.

Create Values for the Attribute "Priority"

 

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management ->Create Attribute Profile => Define Permitted Values for Attributes => Create Values for Attribute 'Priority'

 


                       Fill in the following value shown in the image and click on save. The following value helps us to indicate the priority of the case created for the Credit Limit Request.

Create Values for the Attribute "Reason for Escalation"

 

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management ->Create Attribute Profile => Define Permitted Values for Attributes => Create Values for the Attribute "Reason for Escalation"

 

Fill in the following value shown in the image and click on save.The following value helps us to indicate the escalation reason of the case created for the Credit Limit Request.

Assign Reasons for Escalation to an Attribute Profile:

 

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management ->Create Attribute Profile => Define Permitted Values for Attributes => Assign Reasons for Escalation to an Attribute Profile.

Fill in the Attribute Profile Created in the above step and click on the Tick button.

Add the escalation Reason created in the previous step and click on save.

Step 2:  Status profile


In this activity, you can define the various status forms and the changes from one status to another that you require for documented credit decisions and credit limit requests.

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management -> Set Status Administration -> Create Status Profile.


Click on New Entries and Create a new Status Profile and click save.


Navigate to Status Value.


Click on Status Value and fill in the following data shown in the table and click on save.
 

Status ProfileStatusStatus DescriptionSystem StatusSystem Status Descr.Lowest StatusHighest StatusAutomaticEvent for Case
FIN_CRED10New001Open/New010false 
FIN_CRED20Being Processed002In Process040false 
FIN_CRED30Approved008Confirmed2030false 
FIN_CRED40Rejected006Rejected2030false 
FIN_CRED50Closed007Closed2540false 


After adding the value. click on save. The below value will act as a status for the Credit limit request. The responsible person will change the Credit Limit Request Status based on the business need.

Step 3: Number range

 

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management -> Define Number Range Intervals for Case


Click on Intervals to define the intervals for the Credit limit request Case.


Define the interval and NR Status for the Credit limit request Case.

Step 4: Case Types


The following case types are contained in the standard system for SAP Credit Management: Credit Limit Request (F_CR).

Define Case Types

 

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management -> Define Case Types-> Define Case Types.

Fill in the following data to create a case type for a Credit limit Request and click on save.


Assign the number range which was created in the previous steps.


Navigate to Customizing for Case Copy and fill in the following data shown in the image and click save.

Case TypeFunction (Case Component)CopyMergeSplit
F_CRATTRIBUTEStruefalsefalse
F_CRCASE_LOG_SUBtruefalsefalse
F_CRSUBCOMPONENT_NOTEStruefalsefalse
F_CRSUBCOMPONENT_RECORDtruefalsefalse

Create Values for Attribute "Category".

 

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management -> Define Case Types-> Create Values for Attribute "Category".

Create an Attribute Category and map it to the case type and save it.

Case TypeCategoryText
F_CR1Category 1
F_CR2Category 2
F_CR3Category 3

Create Values for the Attribute "Reason".

 

Path => SAP NetWeaver under Application Server -> Basis Services -> Case Management -> Define Case Types-> Create Values for Attribute "Reason".

Create an Attribute reason and map it to the case type and save it.

Case TypeReasonText
F_CR0001First Credit Limit Set
F_CR0002Additional Service Contracts
F_CR0003Seasonal Adjustment
F_CR0004Limit Exceeded Due to Increased Order Volume

Configuration Steps For Credit Limit Request:

1. Create a Profile for Case Search

Path: SPRO -> SAP Customizing Implementation Guide → Financial Supply Chain Management → Credit Management → Credit Risk Monitoring → Credit Limit Request → Create Profile for Case Search.

Create a New Profile for Credit Limit Requests.

Navigate to Selection Fields:

Fill in the following data shown in the below image and save it.

Case Search ProfileRow NumberColumn NumberCase Attrib.Selection Options
F_CR11EXT_KEYfalse
F_CR12PROCESSORfalse
F_CR21FCR_PARTNERfalse
F_CR22FCR_SEGMENTtrue
F_CR41CREATED_BYfalse
F_CR42CREATE_TIMEtrue
F_CR51STAT_ORDERNOfalse
F_CR52CATEGORYfalse
F_CR61PRIORITYfalse
F_CR62CASE_TITLEfalse

2. Define Document Class:

 

Path: SPRO-> SAP Customizing Implementation Guide → Financial Supply Chain Management → Credit Management → Credit Risk Monitoring → Credit Limit Request → Enterprise Services→Define Document Class for Attachments to Credit Limit Requests

3. Activation supporting BAdI.

 

Path: SPRO-> SAP Customizing Implementation Guide → Financial Supply Chain Management → Credit Management → Credit Risk Monitoring → Credit Limit Request → Enterprise Services→ Mapping BAdIs for Service Provider.

Make sure the below BAdI is activated.

4. Define Events and Follow-On Processes

 

Path => SAP Customizing Implementation Guide → Financial Supply Chain Management → Credit Management → Credit Risk Monitoring → Processes → Define Events and Follow-On Processes.

In the activity Define Events and Follow-On Processes, define the activities in which event type Credit Limit Change Requested is to be dealt with; enter the follow-on processes Check Request for Limit Change and Start Workflow for this event type.

Step 5 : Configuring Approvals for Credit Limit Changes

 



Path => SAP Menu→ Tools → Business Workflow → Development → Administration → Event Manager → Type Linkage

Transaction Code: SWETYPV

Make sure that, under Event Manager → Type Linkages, the following settings are defined for the object type CL_UKM_ACCOUNT:

Step 6: Workflow Builder

 



Path => SAP Menu→ Tools → Business Workflow → Development → Definition Tools → Workflow Builder → Workflow Builder

Transaction Code: SWDD

Choose Goto → Basic Data

Then Goto → Agent Assignment for Task. Make sure that the task is identified as a general task.

Result:

If the credit limit of a credit account is increased, manually or via an automatic process (for example, mass change), by more than the percentage rate defined in the rule, the increased value is not transferred to the Credit Limit field immediately; instead, it is entered in the Credit Limit Requested field. At the same time, a workflow item is generated that provides information about this request and offers access to the business partner maintenance. If the user has the relevant authorization, he can accept the limit requested (it is included in the credit limit) or reject it.

Test Case:

 



Transaction Code: BP

Role: UKM000 Sap Credit Management.


Note the credit limit of the Business Partner.

Credit Limit Request :

 



Transaction Code: UKM_CASE

Fiori Application: Manage Credit Cases

S/4HANA transitions from using VKM3 transactions to UKM_CASE transactions for releasing credit-blocked documents. UKM_CASE transaction is a typical ERP mega transaction that has a lot of functionality and an over-complicated user interface. The latter makes it complicated to use UKM_CASE transaction for S/4HANA insight to action. In my blog, I will explain how to apply the Fiori Simplify strategy to the UKM_CASE transaction. As you can see, UKM_CASE has an organizer panel (on the left) for activities switching RMS and menu navigation.

 Create a credit limit request.

Go to Credit Limit Request – Search.

After approving the request, the Credit limit will be updated in the BP Master.

 

Go to transaction Code: BP

Role: UKM000 Sap Credit Management. Check the credit limit.

Conclusion:

By following the above steps you can activate approvals for credit limit change in the business partner screen with simple configurations.

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