FSCM Overview

Overview

• SAP Credit Management holds information about ALU business partners in a separate set of Master Data called „Business Partners‟. They correspond to „Customers‟ in Accounts Receivable and Sales and Distribution. In terms of „Partner Function‟, this is only the „Payer‟ that is relevant to SAP Credit Management.

• The creditworthiness data of each Business Partner is grouped under Credit Profile Data and Credit Segment Data

• Business Partners are organized through a Hierarchy that respects the Credit Hierarchy today in place in Blue Planet.

• The transaction to view/maintain the Business Partner Master Data is UKM_BP.

Benefits

• The creditworthiness and payment behavior of the business partners have an immediate effect on the business results.

• Efficient receivables and credit management reduces the risk of financial losses and helps you to optimize business relationships with the business partners.

• SAP Credit Management replaces the existing Credit Management which is a purely internal FI credit management application, whereas SAP Credit Management provides you with a comprehensive, integrated, and cross-system application.

FSCM – System architecture (Blue

Planet / QTC)

• FSCM component is implemented in Blue Planet

• QTC system is connected to FSCM component in Blue

Planet

FSCM – Business Partner Master

data - Overview

• SAP Credit Management holds information about ALU business partners in a separate set of Master Data called „Business Partners‟. They correspond to „Customers‟ in Accounts Receivable and Sales and Distribution. In terms of „Partner Function‟, this is only the „Payer‟ that is relevant to SAP Credit Management.

• The creditworthiness data of each Business Partner is grouped under Credit Profile Data and Credit Segment Data Business Partners are organized through a Hierarchy that respects the Credit Hierarchy today in place in Blue Planet. The transaction to view/maintain the Business Partner Master Data is UKM_BP.

FSCM – BP Master data – Credit

Profile Data

• The Credit Profile Data includes the Risk Class (AQR), the

Check rules and externally determined rating values (such as the

score).

• Whereas classic Credit Management works with Credit Control

Areas, SAP Credit Management uses Credit Segments to which

Credit Control Areas are assigned.

• A common credit segment has been created in FSCM: Z_ECA

“ALU Global Credit Segment”, which has the currency EUR

and Exchange Rate Type M.

FSCM – BP Master data – Credit

Profile Data

• Credit Control areas ECA & US1 are assigned to this one Credit Segment Z_ECA. Thus all the Company Codes already defined today in Blue Planet will be assigned to this one Credit Segment Z_ECA and the currency of the credit limit will be the same as the one used in the Credit segment (thus the credit limits of all the customers will be in EUR).

• The Credit segment Data includes the current Trade Credit Limit, the Credit Exposure, the Credit Exposure Utilization and Payment Behavior Key Figures.

FSCM – BP Master data – Credit

Hierarchy • In FSCM ALU Business Partners are structured under a

Customer Hierarchy composed of three levels:

• Level 1 – Customer Group

• Level 2 – Customer Sub-Group

• Level 3 – Customer

• Customer Groups and Sub-groups aggregate ALU business partners legal entities belonging to the same unique holding structure, where the Customer Group represent the ultimate consolidated entity and Customer Sub-groups represent the subsidiaries sharing the same Asset Quality Rating (AQR) and Region.

• The Customer Hierarchy will be used to aggregate the Credit Exposure of all „Business Partners‟ belonging to a Sub-Group and of all the Sub-Groups belonging to one Group.

FSCM – BP Master data – Credit

Hierarchy

• AQRs are set at Sub-group and Customer Level of the Customer Hierarchy, while TCLs are set at Subgroup Level.

• However, it is possible that „Sold-to party Customers‟ belong to a flat hierarchy meaning that in this case there is no Sub-group and AQRs and TCLs are then set at Customer Level.

• The Credit Hierarchy can be displayed through transaction UKM_BP under section « Relationships »

FSCM – Credit exposure

• When you post documents from sales, shipping, and billing, changes to the commitment are transmitted to FSCM - Credit Management. In SAP Credit Management, the commitments contribute to the credit exposure of a business partner.

• The Credit Exposure can be displayed at Customer, Sub-group or Group level.

• The Credit Exposure is reported in EUR and Transaction currency. If the Transaction currency is not EUR, it is automatically converted at the latest valid Exchange rate.

FSCM – Credit exposure

• The Credit Exposure is updated in real-time.

• Secured Exposure are reported under the « Hedged Credit Exposure »

• It is possible to drill-down to a line item by double-clicking on a Commitment line.

• The Credit Exposure can be displayed through transaction UKM_BP or UKM_COMMITMENTS.