Credit and Receivables Risk Management

Transcription

1 Exercise Introduction You have decided to implement the Credit Management function in SAP to better manage Accounts Receivable to minimize the risk from customer default while making sure that the impact on sales due to credit blocks is reasonable and minimized. Some configuration settings have already been made to allow for credit management. Additional settings must be made, along with master data entries to complete the implementation of credit management. We will make those entries for ## Health Express, then check to see that they function. 1. Set Updating for Sales Documents First, we need to define how different transactions affect what our customer owes us, or the Total Commitment. To do this, follow the menu path: Tools Customizing IMG Edit Project Click on Enterprise Structure Definition Financial Accounting Define Credit Control Area (click on the icon) Select your credit control area, then click on the details icon Select your credit control area, ##FS, then click on the details icon ( screen: ) to get the following 1

2 Enter for Update group Enter K1 for FiscalYrVariant Then click on the save icon Enter for the Update group and K1 for the FiscalYrVariant, then click on the save icon ( ). The update group defines how documents in the sales process change the Total Commitment. With update group : Sales orders o Increase the open order value Deliveries o Reduce the open order value o Increase the open delivery value Billing documents o Reduce the open delivery value o Increase the open billing document value Financial accounting documents o Reduce the open billing document value o Increase the open items Click on the back icon ( ) twice to return to the SAP Reference IMG ( ). 2

3 2. Create Risk Category The credit risk category will control the credit review process. Different credit risk categories can be created so that different procedures can be used with different groups of customers. To create a risk category, follow the menu path: Tools Customizing IMG Edit Project Click on Financial Accounting Accounts Receivable and Accounts Payable Credit Management Credit Control Account Define Risk Categories ( ) Which will bring up the following screen: Click on the New Entries icon Click on the New Entries icon, which will bring up the following screen: Add the entry: Z## ##FS ## Standard Risk Category 3

4 Add Risk Category Z## for credit control area ##FS with name ## Standard Risk Category. Click on the save icon ( ),then click on the back icon ( ) twice to return to the SAP Reference IMG ( ). 3. Maintain Automatic Credit Control With Automatic Credit Control, the SAP system can be configured to perform credit checks to run at different times during order processing. It is possible to define a system response for each credit check (for example, warning message). In the case of a warning message, a block can be set in the credit status of a document so that further processing cannot continue until the credit problem is corrected. To configure Automatic Credit Control, follow the menu path: Tools Customizing IMG Edit Project Click on Sales and Distribution Basic Functions Credit Management/Risk Management Credit Management Define Automatic Credit Control ( ) Which will produce the following screen: Click on the New Entries icon Click on the New Entries icon, which will produce the following screen: 4

5 Enter CCA RkC CG Credit control ##FS Z## 01 Standard Credit Check Then click on enter icon Make the following entry: Enter CCA RkC ##FS Z## Then click on enter icon ( CG Credit control 01 Standard Credit Check ). The currency value will change to USD: Currency changes to USD To define the Automatic Credit Checking procedures, make the following entries: 5

6 Check Dynamic Enter Reaction C (warning plus value by which credit limit is exceeded) Check Status/Block (block further processing) Enter 2 for Horizon (2 months for dynamic check) Make the entries shown above, then click on the save icon ( ),then click on the back icon ( ) twice to return to the SAP Reference IMG ( ). 6

7 4. Set Customer Credit Limit With the configuration of the Automatic Credit Check complete, the credit limit can be established for ## Health Express. Setting the credit limit for a company involves a change to Master Data, which is done from the SAP Easy Access menu paths. Click on the back icon ( ) until you reach the SAP Easy Access screen, then follow the menu path: Logistics Sales and Distribution Credit Management Master Data Change which will bring up the following screen: Click on the customer field, then click on the search icon To find customer ## Health Express, click on the customer field, then click on the search icon to call up the following search window: 7

8 Enter ## for search term, then click on the enter icon After entering ## for the search term and clicking on the enter item, you should get a list of customers: Double-click on ## Health Express to select it Double-click on ## Health Express to select it, then make the following additional entries: 8

9 Confirm that the customer number has been entered from the Search process Enter ##FS for Credit control area Select Status, then click enter Make/confirm the entries shown above, click on the enter icon ( appear: ) and the following screen will 9

10 Enter 1000 for Credit limit and Z## for Risk Category, then click on the save icon Message notifying us that we have not maintained a credit limit for ## Health Express, which is why we are in this transaction! Enter 1000 for Credit limit and Z## for Risk Category, then click on the save icon ( ). The SAP ERP system should now be configured with a credit limit of $1,000 for Health Express. Next, we need to test the configuration. Click on the back icon ( ) until you reach the SAP Easy Access screen 5. Create Sales Order To test the credit check, first we will create a sales order that will be within the $1,000 credit limit for ## Health Express. To create the sales order, follow the menu path: Logistics Sales and Distribution Sales Order Create which will produce the following screen: 10

11 Enter: Order Type OR Sales organization ##FS Distribution channel DI Division SB Then click on the enter icon Make the following entries, then click on the enter icon ( appear: ) and the following screen will 11

12 Search for ## Health Express Enter PO Number HXP## Search for ## NRG-B Enter 2 for Order quantity Then click on the enter icon Enter the information shown above, then click on the enter icon ( ). Next, follow the pulldown menu path Environment Partner Display credit account: 12

13 Follow pull-down menu path to review credit limit From the Create Sales Order screen, we can check the customer s credit status: 13

14 Because we have not saved the sales order yet, ## Health Express has all of its $1,000 credit limit available. Click on the back icon ( ) to return to the Create Sales Order screen, then click on the save icon ( ) to save the sales order. When the sales order has been saved, click on the back icon ( ) until you are back at the SAP Easy Access screen. 14

15 6. Review Customer Credit Limit Now that the sales order has been saved, it should be reflected in the customer s available credit. To check this, follow the menu path: Logistics Sales and Distribution Credit Management Master Data Change which will bring up the following screen: The customer number for ## Health Express should be entered as a default value by the SAP system. Confirm the credit control area and status setting, then click on the enter icon Confirm the information required for ## Health Express, then click on the enter icon ( revised credit limit data will be displayed: ). The 15

16 Note impact of sales order on customer s credit Note that the sales order has used 59% of ## Health Express s credit limit. Click on the back icon ( ) until you are back at the SAP Easy Access screen. 7. Create Sales Order over the Credit Limit If ## Health Express orders another 2 cases of NRG-B bars, this should trigger the Automatic Credit Check logic as it would cause ## Health Express to exceed it s credit limit. To check this, create another sales order as in Step 5. To do this, follow the menu path: Logistics Sales and Distribution Sales Order Create Enter the following information: Order Type OR Sales organization ##FS Distribution channel DI Division SB Then click on the enter icon ( ): 16

17 Search for ## Health Express Enter PO Number HXP##A Search for ## NRG-B Enter 2 for Order quantity Then click on the enter icon Enter the information shown above and click on the save icon ( will pop-up: ), and the following message This is a result of the settings we made for Automatic Credit Control in Step 3. We set the reaction to C, which meant that we would get a warning message plus information as to the amount by which the order exceeded the credit limit. Because we specified a warning message, we can save the sales order, but it will be blocked from further processing until the credit limit problem is resolved. If we had specified an error message for the reaction, the order would not be able to be saved. Click on the enter icon ( ) on the message to save the order, then click on the back icon ( ) until you are back at the SAP Easy Access screen. 17

18 8. Review Customer Credit Limit Again Now that the second sales order has been saved, we should check how it appears in the customer s available credit. The menu path for credit management is: Logistics Sales and Distribution Credit Management Master Data Change After confirming the customer data, you can review ## Health Express s credit: Note that the amount of credit used has not changed! While we saved a second order for ## Health Express, it is blocked, and as blocked orders cannot be processed further, the SAP ERP system does not count them against the customer s credit limit. 9. Review and Release the Blocked Sales Order Usually an important task in credit management is to review all blocked orders and decide how they should be handled. In a reasonably large company, this might be a task performed every few hours. To review the blocked sales order, follow the menu path: Logistics Sales and Distribution Credit Management Exceptions Blocked SD documents 18

19 which will produce the following screen: Credit control area ##FS and the account number for ## Health Express should be entered by default. Only ##FS is required to find the blocked sales order. Click on the execute icon to list the blocked sales order Make sure that at least ##FS is entered for the Credit control area, then click on the execute icon ( ). This will produce the following report: Select blocked sales order, click on release, then click on the save icon We will release this sales order for further processing. To do this, select the order by clicking the check box, then click on the release icon ( ), then click on the save icon ( ). This will produce the following message: 19

20 Use the back icon ( ) until you are back at the SAP Easy Access screen, then recheck the credit limit using the menu path: Logistics Sales and Distribution Credit Management Master Data Change The just-released sales order is now reflected in the Customer s credit limit status: Click on the back icon ( ) until you are back at the SAP Easy Access screen 20

21 10. Create Delivery As a sales order is processed, its changing status is visible in Credit Management. To see this, we will process one of the sales orders further. To create a delivery for one of ## Health Express s sales orders, follow the menu path: Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Create Single Document With reference to Sales Order which will produce the following screen: Enter ##SP for shipping point and either use the default order or search for a ## Health Express sales order, then click on enter Enter ##SP for shipping point and enter a sales order, then click on the enter icon ( the following screen: ) to produce 21

22 Click on the save icon to create the delivery Click on the save icon ( ) to create the delivery. Use the back icon ( ) until you are at the SAP Easy Access screen, then check ## Health Express s credit status using the menu path: Logistics Sales and Distribution Credit Management Master Data Change Verify the default data, then click on the enter icon ( but use the pull-down menu path: ). It appears that the status is unchanged, Extras Sales value which will produce the warning message: Click on the enter icon ( ) to see more detail on the sales value: 22

23 The sales value is made up of an open sales order and an open delivery Note that the sales value of $1,180 is made up of an open sales order and an open delivery. Click on the enter icon ( ) to close this window, then use the back icon ( ) until you are at the SAP Easy Access screen. 11. Pick Order and Post Goods Issue To further process the sales order, we can perform the picking and post the goods issue in one step. To do this, follow the menu path: Logistics Sales and Distribution Shipping and Transportation Outbound Delivery Change Single Document which will produce the following screen: The delivery number should be entered automatically. If not, use the search to find it. Then click on the enter icon Verify that the delivery number is entered, then click on the enter icon ( screen: ) to get the following 23

24 Click on the Picking tab, Enter 300 for SLoc (storage location) Enter 2 for Picked Qty Then click on the Post goods issue icon. Enter 300 for SLoc (storage location), 2 for Picked Qty, then click on the Post goods issue icon ( ). 12. Create Billing Document To create an invoice for the sales order, follow the menu path: Logistics Sales and Distribution Billing Billing Document Process Billing Due List which will produce the following screen: 24

25 Enter Sales Organization ##FS Click on DisplayBillList Enter ##FS for the Sales Organization, then click on DisplayBillList: Click on block at end of line to select, and then click on Collective billing document Click on block at end of line to select the delivery, then click on Collective billing document. When processing the delivery is complete, the color of the line will change: 25

26 Use the back icon ( ) until you are at the SAP Easy Access screen, then check ## Health Express s credit status using the menu path Logistics Sales and Distribution Credit Management Master Data Change Processed sales order is now in the receivables category As one of ## Health Express s sales order has now been processed and invoiced, it shows up in the Accounts Receivable category. 26

27 13. Receive payment from the Customer When we receive payment from the customer, it should free up some of the credit limit. To test this, receive payment from the customer by following the menu path: Accounting Financial Accounting Accounts Receivable Document Entry Incoming Payments Which will produce the following screen: Enter today s date for document date Make sure ##FS is entered for company code and USD is entered for Currency/rate Enter for Account under bank data Enter 590 for Amount Search for ## Health Express Then click on Process Open Items Enter the information shown above, then click on Process open items. This will produce the following screen: 27

28 Double-click on the USD Gross amount until the Not assigned quantity is zero. This assigns the payment to the open invoice. Click on the save icon Double-click on the USD Gross amount to assign the payment to the open invoice, then click on the save icon ( ) to post the payment. 28

29 Click on the back icon ( ), which will produce the following pop-up window: Click Yes Click Yes, and you will return to the SAP Easy Access screen. Check ## Health Express s credit status one last time using the menu path Logistics Sales and Distribution Credit Management Master Data Change Click on the enter icon ( ) to get to the following screen: Note that paying the invoice has cleared the Receivables item. To generate a report on this customer, follow the pull-down menu path: Environment Reporting Credit overview 29

30 which will produce the following screen: Click on the execute icon to generate the overview report Click on the execute icon ( ) to generate the overview report: To complete this assignment, you need to print a copy of this report to hand in. To do this, click on the print icon ( ) and you will get the following screen: 30

31 Click on the Enter (continue) icon After clicking on the continue icon you should be returned to the Document flow screen and a message like the following should be displayed at the bottom of the screen: The SAP ERP system will also open window that will contain details of the print job: Be sure to neatly print your name on a printout of the Credit overview report to hand in. 31