SAP Credit Management
FinanceDefinition
SAP Credit Management is a component of SAP ERP that enables organizations to assess and manage credit risk for their customers.
Detailed Description
SAP Credit Management provides the tools and functionality needed to optimize and control credit risk processes within an organization. It allows businesses to evaluate the creditworthiness of customers, set credit limits, monitor customer payment patterns, and address potential credit issues early on. Integrating SAP Credit Management helps in maintaining optimal cash flow and minimizing the risk of financial losses due to bad debts.
Key Features
- Automatic credit rule setup
- Comprehensive credit reports
- Credit limit management
- Credit scoring and risk assessment
- Integration with other financial modules
Common Modules
SAP Financial Supply Chain Management (FSCM)
This is a module within SAP ERP that helps companies manage their financial supply chain effectively, and it includes Credit Management capabilities.
SAP Sales and Distribution (SD)
The SD module supports a company's sales and distribution activities and integrates with Credit Management to ensure credit checks during sales order processing.
Popular Implementations
Implementation in a Retail Business
A large retail company implemented SAP Credit Management to improve its credit evaluation process, allowing more accurate credit limits for a diverse customer base and reducing the incidence of overdue payments.