SAP FSCM Credit Management

[former_member349578]

Hi All,

Can anybody explain the functionality and configuration of FSCM credit management? How is it different from AR-SD-CM? What are the integration points between SD and FSCM? What are credit segments, credit limit formulas, credit score, rules for scoring and calculating credit limits, rating procedures etc.?

What are the pitfalls in the configurations and customer & credit master data that may lead to credit check not being performed for customers?

Many thanks for the help. Any link to suitable documentation would be highly appreciated.

[michael_kozlowski · Accepted solution]

There is a helpful document which compares traditional CM and FSCM CM

[VeselinaPeykova]

Have you tried perform your own research before posting?

Here you can find a lot about FSCM credit management:

http://bfy.tw/4XsZ

There is also a dedicated forum space for FSCM experts in SCN, where you can find some blogs on the subject, in addition to the Wiki pages.

[former_member349578]

Yes, I did that. Went through the IMG help but need someone to explain in layman's language. Also, I wanted to understand experts opinion from a risk perspective i.e. what are the possible scenarios in which this credit checks can be bypassed and how they can be detected.

Thanks!

[VeselinaPeykova]

I am not a native English speaker, so when I am not sure about the meaning of a phrase, I search for it followed by meaning. I tried the same for SAP credit segment in google and on the very first page there was a link to a PDF with easy-to understand screenshots and explanations.

The skill to acquire information on your own is extremely important in SAP world.

[former_member349578]

Thanks.. but my question is more from a risk perspective. The idea was to take experts opinion on risks associated with the configurations. Say for example, in AR-SD-CM if the customer is not assigned any risk category in the credit master data, credit check may not be performed at order/delivery level. Also, standard SAP reports are available to see the status of credit check for the document.

So, I wanted to discuss the same for FSCM-CM. Hope it clarifies.

[VeselinaPeykova]

The biggest risks for FSCM, the way I see it, are:

• low quality of uploaded master data (good MD professionals know how to check that end correct the errors);
• incorrect setup - the risk can be mitigated by hiring qualified consultants, review of all design proposals by the solution architect and extensive testing of end-to-end processes before importing to production;
• insufficient training of end users - preparation of detailed documentation and executing regular training workshops, also for new processes;
• network, servers, bottlenecks - this is where the BASIS experts can advise;
• custom developments - the end result depends on the skills of the consultant, the developer and the testers.

It is more or less the same as for almost any other area. There are reports to check for errors, master data changes etc., of course - FSCM is supposed to be superior to the traditional credit management.

Are you preparing for a project position? If yes, then try to get access to a sandbox system with FSCM activated and tinker with the settings, read some related SAP notes - this would be more beneficial to you than if you try to memorize the setup from books or answers to FAQ. 

[former_member349578]

Yes, that is correct. I am preparing for a junior position in project management and managing business risk is one of the aspects.

Thanks..

[VeselinaPeykova]

Then GRC seems also a good topic to focus on (if you have not done this already).

Other than that, for your position I don't think that you will need deep technical knowledge, more about the end-to-end business processes and integration aspects - at the level presented in TERP10.