Documented Credit Decision/Credit Decision for Document - SAP S4Hana Credit Management

[GOWRESHANHARAN]

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 Decision for Document:

If the credit standing check has a positive outcome and the credit line is to be adjusted, SAP Credit Management initiates a credit limit request. In the case of a negative result, the system generates a “Documented Credit Decision” which can be used in credit management to check whether credit can still be granted. In contrast to the credit limit request, a document or account is blocked in the process.

A dual, triple, or quadruple control principle can be configured for the initiated workflow. In addition, documents, notes, and documents can be attached, providing for plausibility and transparency throughout the credit decision.

The former procedure for blocked orders via transaction VKM1 can continue to be used but is being replaced successively by the Documented Credit Decision process.

The responsible credit officers can check, approve or reject the Documented Credit Decision via the TCodes SCASE or UKM_MY_DCDS and leave a note. The sales staff access the web-based customer credit information via the “Display Credit Master Data” app (TCode UKM_BP_DISPLAY).

To use the new SAP Credit Management, the component must be enabled in Customizing using the Business Add-In (BAdI) UKM_R3_ACTIVATE. FSCM also requires the configuration of the communication between the system components Sales and Distribution and SAP Credit Management. To do this, BAdI BADI_SD_CM must be enabled.

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 documented credit decision. 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 documented credit decision.

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

Attribute Profile	FIN_DCD
Description	Doc. Credit Decision for Document
Table Name	UKM_DCD_ATTR

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 Profile	Case Attrib.	Attribute Group	Row Number	Column Number	Required Entry	Invisible	Dropdown	Checkbox	Can Only be Displayed	Modifiable when New	Log Field Changes
FIN_DCD	CASE_TITLE	1	2	1	false	false	false	false	false	false	false
FIN_DCD	CASE_TYPE	1	1	2	false	false	true	false	false	false	false
FIN_DCD	CATEGORY	1	3	1	false	false	true	false	false	false	false
FIN_DCD	CHANGED_BY	1	15	1	false	false	false	false	false	false	false
FIN_DCD	CHANGE_TIME	1	15	2	false	false	false	false	false	false	false
FIN_DCD	CLOSED_BY	1	16	1	false	false	false	false	false	false	false
FIN_DCD	CLOSING_TIME	1	16	2	false	false	false	false	false	false	false
FIN_DCD	CREATED_BY	1	14	1	false	false	false	false	false	false	false
FIN_DCD	CREATE_TIME	1	14	2	false	false	false	false	false	false	false
FIN_DCD	DCD_APPROVER1	1	18	1	false	false	false	false	false	false	true
FIN_DCD	DCD_APPROVER2	1	19	1	false	false	false	false	false	false	true
FIN_DCD	DCD_APPR_STAT1	1	18	2	false	false	true	false	false	false	true
FIN_DCD	DCD_APPR_STAT2	1	19	2	false	false	true	false	false	false	true
FIN_DCD	DCD_CHKDRISKAMT	1	10	2	false	false	false	false	false	false	false
FIN_DCD	DCD_CURR	1	11	2	false	false	false	false	false	false	false
FIN_DCD	DCD_DOC_STATUS	1	11	1	false	false	true	false	false	false	false
FIN_DCD	DCD_OBJ_ID	1	10	1	false	false	false	false	false	false	false
FIN_DCD	DCD_OPENCRDTAMT	1	9	2	false	false	false	false	false	false	false
FIN_DCD	DCD_PARTNER	1	8	1	true	false	false	false	false	true	false
FIN_DCD	DCD_RISK_CLASS	1	8	2	false	false	false	false	false	false	false
FIN_DCD	DCD_SALES_EMPLOYEE	1	12	1	false	false	false	false	false	false	false
FIN_DCD	DCD_SEGMENT	1	9	1	true	false	true	false	false	true	false
FIN_DCD	ESCAL_REASON	1	4	2	false	false	true	false	false	false	true
FIN_DCD	EXT_KEY	1	1	1	false	false	false	false	false	false	false
FIN_DCD	EXT_REF	1	2	2	false	false	false	false	false	false	false
FIN_DCD	PLAN_END_DATE	1	6	1	false	false	false	false	false	false	true
FIN_DCD	PRIORITY	1	4	1	false	false	true	false	false	false	true
FIN_DCD	PROCESSOR	1	5	2	false	false	false	false	false	false	true
FIN_DCD	REASON_CODE	1	3	2	false	false	true	false	false	false	false
FIN_DCD	RESPONSIBLE	1	6	2	false	false	false	false	false	false	true
FIN_DCD	STAT_ORDERNO	1	5	1	false	false	true	false	false	false	true

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 Decision for Document.

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 Decision for Document.

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.

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 Profile	Status	Status Description	System Status	System Status Descr.	Lowest Status	Highest Status	Automatic	Event for Case
FIN_DCD	10	New	001	Open/New	10	10	false
FIN_DCD	20	In Processing	002	In Process	10	20	false
FIN_DCD	35	Closed Automatically	007	Closed	10	35	false
FIN_DCD	40	Confirmed	008	Confirmed	30	40	false
FIN_DCD	50	Voided	009	Voided/Deleted/Canceled	10	50	true

After adding the value. click on save. The below value will act as a status for the Credit Decision for Document. The responsible person will change the Credit Decision for Document 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 Documented Credit Decision Case.

Define the interval and NR Status for the Documented Credit Decision Case.

Step 4: Case Types

The following case types are contained in the standard system for SAP Credit Management: Documented Credit Decision (FDCD).

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 Documented Credit Decision 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 Type	Function (Case Component)	Copy	Merge	Split
F_CR	ATTRIBUTES	true	false	false
F_CR	CASE_LOG_SUB	true	false	false
F_CR	SUBCOMPONENT_NOTES	true	false	false
F_CR	SUBCOMPONENT_RECORD	true	false	false

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 Type	Category	Text
FDCD	1	Category 1
FDCD	2	Category 2
FDCD	3	Category 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 Type	Reason	Text
FDCD	0000	Unknown
FDCD	0001	Limit Marginally Exceeded
FDCD	0002	No Overdue Items
FDCD	0003	Customer Approves Payment
FDCD	0004	Sales Assumes Responsibility for Risk
FDCD	0005	Positive External Credit Information

Configuration Steps For Documented Credit Decision:

1. Create a Profile for Case Search

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

Create a New Profile for Documented Credit Decisions.

Navigate to Selection Fields:

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

Case Search Profile	Row Number	Column Number	Case Attrib.	Selection Options
FDCD_LOC	1	1	EXT_KEY	true
FDCD_LOC	1	2	EXT_REF	true
FDCD_LOC	2	1	PROCESSOR	true
FDCD_LOC	2	2	RESPONSIBLE	true
FDCD_LOC	3	1	DCD_PARTNER	true
FDCD_LOC	3	2	DCD_SEGMENT	true
FDCD_LOC	4	1	DCD_OBJ_ID	true
FDCD_LOC	4	2	DCD_DOC_STATUS	true
FDCD_LOC	5	1	DCD_OPENCRDTAMT	true
FDCD_LOC	5	2	DCD_CURR	false
FDCD_LOC	6	1	CREATE_TIME	true
FDCD_LOC	6	2	PLAN_END_DATE	true
FDCD_LOC	7	1	PRIORITY	true
FDCD_LOC	7	2	REASON_CODE	true
FDCD_LOC	8	1	DCD_COMPL_USER	true
FDCD_LOC	8	2	DCD_X_OVERRULED	false

Navigate to Modifiable Fields:
Fill in the following data shown in the below image and save it.

Case Search Profile	Case Attrib.
FDCD_LOC	PLAN_END_DATE
FDCD_LOC	PRIORITY
FDCD_LOC	PROCESSOR
FDCD_LOC	RESPONSIBLE
FDCD_LOC	STAT_ORDERNO

Define Status for Automatic Closing:

Path => Financial Supply Chain Management → Credit management → Credit Risk Monitoring →         Documented Credit Decision → Define Status for Automatic Closing

You have defined the status in the status profile. In Customizing of Case Management, choose Create Status Profile. Make sure that the following settings have been made there:
•The status can always be set.
•The status is assigned to the following System Status: Closed (007)

Define Case Types for Documented Credit Decisions:

Path => Financial Supply Chain Management → Credit management → Credit Risk Monitoring →                    Documented Credit Decision → Define Case Type for Documented Credit Decision

You define which case types the system should use for the creation of documented credit decisions.

1. Credit decisions for documents => This kind of credit decision is used, for example, to document the credit block of a document from Sales and Distribution (SD)

.

Type of Credit Decision	Rule for Calc. Score and Credit Limit	Case Type	Case Type Name
BOB	STANDARD	FDCD	Documented Credit Decision
LEG	STANDARD	FDCD	Documented Credit Decision

Fill in the above details and click save.

Define Approval Process

Path => Financial Supply Chain Management → Credit management → Credit Risk Monitoring → Documented Credit Decision → Define Approval Process

Define the process for the release of documents that have been blocked for credit reasons. It enables you to ensure that only authorized persons can release a document. This approval process relates only to the release, and not the rejection of such documents.

Define the threshold values for the release in ascending order. Note the following details when doing so:

• You can make a maximum of four entries for each combination of credit segment and risk class. The first entry relates to the credit analyst and is used to provide a better overview. You can also omit it, as it is automatically taken into account by the system.

• If you define the credit segment, but not the risk class, then the corresponding entry applies to all the risk classes of the credit segment.

The credit analyst is responsible for ensuring that the approval process is adhered to. The following fields are available to him or her in the documented credit decision for this purpose:

• Person responsible

Once he or she has entered the name of the person responsible, the person responsible can see the entry in his or her own worklist and can release the document there directly.

• Approver and Status

These two fields apply in cases where an additional approver 

is required in addition to the credit analyst or person responsible. Either of them enters the name of the additional approver here and requests a decision from him or her. As this does not usually involve a user of this application, the credit analyst or person responsible also enters the result of the decision. He or she then either releases the document or rejects it.

• Approver 2 and Status 2 are required in addition to the credit analyst or person responsible. The procedure is along the same lines as the case described above, but with an additional approver.

These two fields apply in cases where two additional approvers

Credit Segment	Risk Class	Approver	Threshold Value for Approval	Currency
1000	A	0	0.00	USD
1000	B	0	0.00	USD
1000	C	0	0.00	USD
1000	D	0	0.00	USD
1000	E	0	0.00	USD

PDF Form for Snapshot - Assign:

Path => Financial Supply Chain Management → Credit management → Credit Risk Monitoring → Documented Credit Decision → PDF Form for Snapshot

You assign the PDF forms that you want to use for your snapshots. A snapshot shows the data that forms the basis of a negative credit decision. You can specify a second form, parallel to the official form, that is only used for internal purposes and so can contain additional information.

1. Assign a form to each combination of Case Type and Rule for Calculating Scoring and Credit Limit.

2. To enter an internal form for a particular combination, create a second entry and set the appropriate indicator.

Configuring Event Manager For DCD:

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

Transaction Code: SWE2

Display the object type CL_UKM_DCD_WF_EVENT and make sure that the field Linkage Activated is active.

Test Case:

Maintain Master Data:

Transaction Code: BP

Role: UKM000 Sap Credit Management.

Note: The credit Exposure of the customer is above the Credit Limit.

Maintain the relationship between Credit Analyst and business partner.

Relationship category => in Credit Management is managed by.

Create Sale Order:

Transaction Code: VA01

Sale Order Number => 378.

Credit Status of Sale Order :

Transaction Code: VA03

Below image shows a sales order blocked for credit and a DCD created as a Case

Documented Credit Decision:

Transaction Code: UKM_CASE

Fiori Application: Manage Credit Cases

Approving DCD:

In real life, this DCD should be approved by a credit manager/analyst i.e, not by the person creating or working with a sales order. 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 salesperson.

Credit Status of Sale Order :

Transaction Code: VA03

The below image shows the credit status of the sale order released.

Conclusion:

By following the above steps you can activate approvals for Documented Credit Decision with simple configurations.