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SAP Financial Supply Chain Management

Finance

Definition

SAP Financial Supply Chain Management (FSCM) is a set of modules in SAP that manages the financial processes associated with the supply chain, such as credit management, collections, and dispute management.

Detailed Description

SAP Financial Supply Chain Management (FSCM) is designed to optimize financial operations and manage the order-to-cash cycle more effectively. It provides comprehensive solutions for credit management, collections, and dispute processing, ensuring improved cash flow and reduced risks. FSCM integrates with other SAP ERP components to provide a holistic view of financial supply chain activities, enabling better decision-making and streamlined financial operations.

Key Features

  • Cash and Liquidity Management
  • Collections Management
  • Credit Management
  • Dispute Management
  • Treasury and Risk Management

Common Modules

Collections Management

Automates the collection process, facilitating timely interactions with customers to ensure prompt payment and improved cash flow.

Credit Management

Helps manage customer credit risk by enabling credit rating and scoring, risk category management, and credit limit monitoring.

Dispute Management

Provides tools to effectively handle billing disputes, allowing for the tracking, resolution, and recovery of receivables.

Popular Implementations

Implementation at a Manufacturing Company

A manufacturing company implemented SAP FSCM to streamline its credit management process, resulting in improved cash flow management and reduced bad debt.