FSCM-CR
THE SAP ECC credit management system is being replaced by a new solution in S/4HANA. Data from the accounts receivable accounting (FI-AR) and sales and distribution (SD) components will be collected and made available in real time via the new credit management interface. This eliminates manual post-processing work, ensures governance and increases transparency. The approval process in particular is fundamentally optimized by DCD (Documented Credit Decision).
Credit management helps your company to identify the risk of bad debt losses from business partners at an early stage and to make credit decisions efficiently and, in some cases, automatically.
Traditional credit management in SAP ECC has a long history and is characterized by a high level of stability. However, it has weaknesses - particularly with regard to transparency and automation. For example, approval decisions were made outside the system and could not be documented in SAP. The dual control principle was also implemented purely organizationally. The S/4HANA solution addresses these shortcomings and optimizes numerous processes in credit management.
In this white paper, we highlight the new Documented Credit Decision process using an example. In particular, we look at the release of blocked orders and show how the DCD process increases efficiency and transparency.
You will also learn
- the main differences of the DCD process compared to the traditional process with VKM1 and VKM4,
- the main advantages of the new DCD process,
- an overview of the redesign of the authorization concept,
- the process of a credit limit application and
- the process of a credit decision for an entire business partner account.
