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I look forward to hear about your experience in working in s/4HANA Credit Management. Sharing below a comparison of the solution, as per SAP Documents


The need of Credit Worthiness of the Customer, Credit Assessment and the Challenges in managing Credit
• Inconsistency in credit policy: No single source of truth and the information is spread across the organizational systems. Hence within an organization, there is a possibility of a customer getting treated differently by different business units
• Cross-department collaboration: For Credit decision the information required is spread across various departments and communication between sales, credit, and finance department. Getting this information and processing the unstructured info is extremely time-consuming.
• Treatment of new customers: an organization does not have in-house score of a partner who is new customers

SAP Solution:
Historically SAP had two solutions for Credit Management : FI-AR Credit Management and SAP Credit Management.
i.e. ECC FI-AR Credit Management & SAP FSCM Credit management.
The ECC Credit Management triggered thru SD using FI-AR is obsolete and no longer supported in S/4HANA.
In SAP S/4HANA, BASIC Credit management, based on technical foundation of FSCM Credit Management is made available.
In SAP S/4HANA No additional license is required for using "BASIC" Credit Management solution even if it is technically based on FSCM Credit management.
However to use additional functionality like scorecards, automatic determination of limits, workflow, integration of external credit information, Client must acquire License. Lic. is Client specific and related info needs to be checked with Client and SAP respectively. *This blog focuses on the Functional and Technical features available in S/4HANA Credit Management & FSCM Credit Management.

Key Aspects & Components of Credit Management

  • Business Partner : Business Partner (BP) is the defacto object used for Customer and Vendor object in S/4HANA.

  • Credit Scoring : Score & Default Probability helps determine Risk-Class levels (Risk Class 1 : Invoice, Risk-Class II : Check by Ext. Credit Agency, Risk-Class III : Cash on Delivery, Letter of Credit, Adv. Payment)

  • Credit Integration : Automatically populate Credit Bureau Data in Credit-Profile tab of Business Partner, BP-Role Credit-Mgmt. Standard interfaces for Credit Bureau are available in FSCM Credit Management.

  • Workflow : Events to monitor to perform automated actions or routes to Credit Analysts

  • Credit Checking : Select what type of Credit-Check to perform for this customer.

The key difference between ECC Credit Management and FSCM-Credit Management are in areas of

"FI-AR" Credit Management FSCM Credit Management S/4HANA Basic Credit Management Comments : System Conversion
SINGLE-System Credit Checks against a LIMIT you determine Cross system Credit Checks against calculated ratings and limits

** Migration required from FI-AR Credit Management to Basic edition of S/4HANA Credit Management.

Few examples given below

Deleted tables including S066/S067 : SAP Credit Management Config. is created based on existing FI-AR Credit Configuration data

In case of new implementation for existing SAP customers, need to understand the requirement and configure accordingly.
Master Data FI-AR Account Business Partner SAP Business Partner

Migrate Credit-Accounts from FD32 to UKM_BP

In case of new implementation for existing SAP customers, need to understand the DATA-MIGRATION requirement.

BP role for Credit Management
* Choose a rule for calculating a SCORE

*Risk-Class can be automatically or manually set

* Check-Rule - Select what type of Credit Check to be performed for this Customer
FI Data FI-AR FI-AR, FI-CA, Others SAP Business Partner
Monitor Credit Exposure Only for Simple System Landscape (1xFI,1xSD);
SAP System Only
Distributed System Landscape (Multiple FI, SD & CRM systems) ;
SAP & non-SAP
Distributed System Landscape (Multiple FI, SD & CRM systems) ;
SAP & non-SAP
Credit Exposure in FSCM is rebuilt.
Automated Customer Scoring, Ratings and Limits Not Available Credit Rule Engines Not Available * Details will be updated after checking S/4HANA 1709 Solution.
External Credit Information (e.g. D&B) Only thru partner products Any XML based Credit Information Service Not Available in standard
Workflow Only in SD Any Credit Event, Documented Credit Decisions, Credit limit requests Documented Credit Decisions Documented Credit Decisions (DCD) created for blocked Sales Orders
Analysis Customer FactSheets FIORI
Smart Business /HANALIVE, OLAP/OLTP(including BW content)
Smart Business / HANA Live
* Details will be updated after checking S/4HANA 1709 Solut
No XML messages are used : No Commitment-updates are sent from FI-AR to SAP Credit Management. Instead a HANA view reads the AR Exposure in real-time on the fly when Exposure is required in SAP Credit-Management (For credit worthiness check , for Customer reports)Technical details to be checked further and updated

S4HANA 1610, FSCM Credit Management help link

SAP S/4HANA 1709 FSCM Credit Management help link.