Credit management is an essential part of any corporate strategy, especially when it comes to securing liquidity and minimizing the risk of payment defaults. With SAP Credit Management, SAP offers companies a solution with which credit processes can be automated and optimized. However, in order for this solution to unfold its full benefits, careful configuration during implementation is essential. Only through careful configuration based on business requirements can the full potential of credit management be exploited. Read this blog post to find out what you need to pay attention to.
1. Business analysis and requirements definition
The first step towards successful configuration is a comprehensive analysis of the business requirements. A detailed definition of requirements lays the foundation for effective configuration.
To do this, companies need to think about their customer group in advance: Is it more of a homogeneous or heterogeneous customer group? This can, for example, influence the characteristics of the risk classes or the number of checking rules required. With a heterogeneous customer group, the need for different risk classes, checking rules or credit groups is generally higher than with a very homogeneous customer group. Accordingly, several checking rules may have to be provided here if the regular customers are to be given preferential treatment in credit management.
The internationalization of the customer base can also play an important role in the definition of requirements. A decision must be made as to whether a separate credit limit is required for each country or whether a cross-border credit limit for a business partner is sufficient. This is also known as centralized vs. decentralized credit management. By defining different credit segments, the mapping of different credit limits for subsidiaries in different countries is ensured. However, one of the most important questions when defining requirements is the definition of the area of application. The central question here is at which point in the business process credit management should actually take effect. Here, SAP offers the option of locating the area of application in sales - for example, during order creation or when the delivery is created - or selecting accounts receivable accounting at reconciliation account level as the point in time. A constellation of both areas of application is also possible.
By recording the company-specific requirements, the appropriate versions of SAP Credit Management can then be derived. Credit Management is available in two versions: the Basic version and the Advanced version, which requires a license. In addition to all the functions from the Basic version, the Advanced version contains additional functionalities that increase the degree of automation - for example, in the calculation of internal creditworthiness or the credit limit (see Basic/Advanced comparison table). Depending on the desired level of automation and the desired range of functions, it may make sense to use the Advanced version of Credit Management, which requires a license.
After analyzing the business and recording customer requirements, companies must carefully consider how credit management should be used and which version is suitable. It can also be advantageous to consider the company's medium and long-term goals and take them into account when making a decision.
2. Implementation of configuration
As part of the implementation of SAP credit management, the technical realization and comprehensive documentation of the specific adjustments are carried out. The business requirements defined in the first phase are implemented by configuration and configuring the system. This includes the implementation of formulas for the calculation of internal creditworthiness values, risk classes, definition of checking rules, etc.
In the event that certain requirements cannot be covered by standard configuration, additional developments are necessary. These individual adaptations ensure complete coverage of the specific business requirements.
The technical implementation of these adaptations is carried out in close cooperation between the company's specialist departments involved and the responsible SAP consultants. This collaborative approach ensures that the implemented solutions are optimally tailored to the company's needs.
All settings and adjustments made are documented in detail during the implementation process. This documentation serves as an important reference work to make the configurations and developments made comprehensible and transparent. It forms an essential basis for future adjustments, updates or bug fixes and thus supports efficient system maintenance and care.
3. Testing, quality assurance and acceptance
Following the technical realization of the business requirements within the SAP system, the execution of comprehensive tests is of central importance. These steps ensure that all adaptations function correctly and meet the specified business requirements.
The first step is to enrich the master data in order to create a solid basis for the test cases. This includes, for example, adding credit management-specific master data to the business partner, such as credit segments or credit limits, which are essential for carrying out the tests.
In the subsequent phase, the focus is placed on the development of test cases. This involves simulating potential business transactions as they might occur in operational practice. The authenticity and proximity of these test cases to real business scenarios is crucial in order to identify and eliminate potential sources of error at an early stage.
It is important to consider three different types of test cases:
- The first type confirms correct functioning under normal conditions,
- the second type is a cross-check of the first test case and
- the third type involves the targeted triggering of an error message to check the system under faulty conditions.
An example of this in the context of credit management could be that a sales order is created with a business partner who has exceeded the credit limit once and fallen below it once. In this way, it is checked whether the sales order is correctly blocked or not blocked in the respective cases.
Another test case could be the creation of a sales order with a business partner who does not have a valid credit segment or does not have the business partner role "Credit Management". This approach helps to ensure that the technical solution meets the actual business requirements.
In addition to the primary credit management functions, the access authorizations for the relevant user groups must also be checked. This gives the departmental users access to the required transactions and Fiori apps. Checking access authorizations helps to avoid problems with authorizations during go-live and ensure that business processes run smoothly.
It is necessary to test the GUI transactions and Fiori apps to ensure that they work properly and, for example, that all backend services for the Fiori apps are activated. This test includes not only retrieving the transactions or apps, but also checking whether the data is displayed correctly and whether functions such as jump options to reports or to the business partner master data work properly.
The implementation of the credit management solution should only be released for productive use once the quality assurance phase and formal acceptance have been successfully completed. These systematic tests and inspection procedures are crucial to ensure a high level of reliability and efficiency of the credit management system in operational business.
4. Training and change management
Before implementing the credit management system, it is important that all employees involved receive comprehensive training tailored to their individual level of knowledge. This training should ensure that employees are familiar with the new processes and functions. The training measures can include various formats such as classroom training at the workplace, the provision of training materials and online training. Particular emphasis should be placed on master data training so that employees understand the specific impact that changes - such as the adaptation of checking rules - can have on business processes. It is also beneficial if employees can gain hands-on experience through practical exercises such as running test cases in the system. This hands-on approach promotes an in-depth understanding of the system and contributes to its efficient use in day-to-day work.
Effective change management also plays a crucial role in promoting employee acceptance and understanding of the benefits of the new credit management system. This is particularly important as incorrect or inaccurate master data can have a negative impact on the company's liquidity situation. For example, incorrectly set credit limits or an incorrect assessment of risk classes can lead to excessive lending to uncreditworthy customers, which in turn can lead to financial risks for the company.
5. Go-live and continuous improvement
Following successful implementation and the final training measures, the credit management system can go live. In the initial phase, it is important to establish a support process to identify any problems that arise and ensure that operations run smoothly. In addition, a regular review of the implemented requirements is necessary to ensure that they correctly reflect the actual business processes. If discrepancies are identified, corresponding requirements must be defined and adjustments made. The continuous review of business requirements is necessary to ensure that they correspond to the current market environment and that external influences that could change the business requirements are taken into account. This process is crucial to ensure that credit management continues to provide added value for the company, secure liquidity and minimize the risk of payment defaults.
If you have any further questions about credit management in SAP, please contact us.
