Credit Segment in SAP System
The credit segment is the central organizational level in credit management (FSCM-CR) in SAP S/4HANA systems and replaces the credit control area (FIN-AR-CR) in the old ECC system.
The credit segment is the result of the redesign of credit management as part of its integration into the SAP business partner. It is used for the structured control and monitoring of credit risks and also offers significantly more flexibility than the conventional credit control area.
The credit segment is maintained in the newly created SAP credit management role, which is fully integrated into the SAP business partner. In principle, multiple credit segments can be maintained for each business partner. This allows credit risks to be managed in a granular manner, for example, by company.
The credit segment represents a type of company code in Credit Management (FSCM-CR) and defines how and where credit limits are stored or whether the customer is blocked in the respective credit segment. A credit segment can be assigned to one or more company codes or sales organizations, thus enabling differentiated credit control of customers, for example, by region, country, or company. The credit check always takes place at the credit segment level and never at the SAP business partner level, even if the internal credit rating, risk class, or credit rating procedure is stored at the SAP business partner level.
Advantages of the credit segment in S/4HANA
The process is divided into several steps:
- Flexible mapping of complex organizational structures: Each company (company code) can be mapped by its own credit segment.
- Uniform credit assessment across sales and finance: The credit segment is used in both areas.
- Real-time reporting at credit segment level: Important key figures such as the highest dunning level, the oldest open item, last payment, and commitment are displayed at segment level.
- Improved transparency and governance in credit management: The maintenance of risk classes, credit limits, and collateral deposits takes place in a central location and is fully integrated into the SAP business partner. This means that all information, such as sales, accounts receivable, and credit management data, is maintained in a central location and not, as is usual in ECC, in multiple transactions.
