Mapping Risk Class and Check Rules

[former_member482003]

Dear FSCM Experts,

I wish to know how to get and set the mapping between Class Risk and Check Rules valid for that class.

thanks

best regards.

Laura

[former_member199199]

Hi Laura,

In my opinion, risk class is the evaluation of a customer based on the check rules, and based on the evaluated score; the risk class is assigned at master data.

So, let's say, you have assigned a credit check rule to a customer. In SPRO, the credit check rule has been configured with a Score Formula. When you process the score evaluation either from BP screen or using mass processing program, the business partner would be assessed as per the formula. Whatever score has been calculated from the formula would be checked with the risk class mapping, internally during that process and then the appropriate risk class is calculated and assigned at business partner (Table UKMBP_CMS).

At BP level, you can assign a check rule using BP screen and that is stored in table UKMBP_CMS.

And, you can assign ratings internally (FICA Rating from creditworthiness) or externally(from credit bureau). Those ratings are associated with corresponding rating procedure so that you can segregate ratings as per rating procedure. That is stored in the table BP1012 time sliced with ratings.

The overall Score Formula (that you'll build) associated with the check rule assigned at BP, would then evaluate the customer based on the ratings and other factors. The score is then evaluated and stored in table UKMBP_CMS in field OWN_RATING. The program UKM_MASS_UPD2 is used to calculate score at BP that assigns risk class as well.

Hope it addresses your query.

Thanks,

Bodhisattwa

[former_member482003]

Dear Roy,

thank you for your answer.

We alse find the tcode OVA8 to set block on a risk class.

I have another question:

After setting check rule and block I should rebuild the credit. Is it right? On all Business Partners or on the BP involved in the class changes?

thank's

best regards

Laura

[former_member199199]

Hi Laura,

First of all, based on the business process you can either change or keep the credit check rule unchanged at BP level. However, assuming you would set certain check rule at BP master record when you create the credit management role (UKM000).

Now, refreshing of the credit score again depends upon the factors as what all the business processes are dependent on the accuracy /freshness of the rick class. Accordingly, you can set it up real time/daily/weekly/monthly.

And you may refresh the credit score not only after changing the credit check rule but also keeping the same check rule and during change in customer's circumstances (like dunning, write off, return etc. that influence creditworthiness score which may be considered in your credit formula). Therefore there may be case where you have to refresh score for all customers.

Hope it makes sense.

Thanks

Bodhisattwa

[former_member482003]

Thanks Roy,

so have I  to rebuild the credit also after changing only the check rule?

and after changing the class risk?

thanks

Laura

[former_member482003]

Hi,

question solved.

The rebuild of the BP indicator must be done after changing the class risk to a credit relevant one ( not after changing the check rule ) .

thanks

Laura