Guard Against Nonpayments with Credit Data Error Detection

  • by Rohana Gunawardena, SAP Practice Director, Exium Inc.
  • August 30, 2011
Learn the techniques for determining the root cause of credit errors within SAP sales and distribution (SD). The SAP credit management functionality primarily resides in the SD module, but from a business process perspective, finance staff are a lot more interested in it than sales teams. Often analysts from the SAP finance team take responsibility for this functionality, based on end-user interest.
Key Concept
SAP credit management functionality makes extensive use of the Sales Information System (SIS) process to track credit values. An incorrect update of the SIS tables is often the root cause of incorrect credit values. The use of SIS makes SAP standard credit management functionality highly configurable, but at the same time, the nature of the data update makes the SAP team’s job of detecting the root cause of errors more complex.

In my previous article, “Guard Against Nonpayments with Credit Data Reorganization,” I addressed the issue of credit data reorganization and mentioned that before any reorganization the root cause of the error needs to be resolved. I hinted at what some of the root causes may be. In this article I explain what you need to do with regard to them. If you do not resolve the root cause of the credit data error, you face the challenge of running the credit data reorganization reports regularly knowing that the credit data used for order approval is inaccurate. This practice creates a burden on system performance.

Note that there are four major classes of processing errors within sales and distribution (SD) credit management:

  1. Credit checks
  2. Update of the open credit values
  3. Credit release, lists, and reports for new checks
  4. Credit master data and reports for the reorganization of credit data

The detection process shown in this article directly relates to items 2 and 4 in the preceding list and assists in resolving issues for items 1 and 3.

This article is on advanced error detection for the SD credit management functionality. It assumes that you have reviewed the basic SD credit management functionality:

  • Configuration of SD credit management
  • Configuration of SIS
  • Customer master settings
  • Credit management master data settings

This article does not cover detailed step-by-step configuration for credit management. For that information read Stef Cornelissen's articles "Make SAP Automatic Credit Management Work for You" and "Make SAP Automatic Credit Management Work for You: Credit Limit Calculation."

Rohana Gunawardena

Rohana Gunawardena heads the SAP practice division at Exium Inc. Exium is a leading business and technology consulting firm that enables companies to achieve their strategic business goals. Exium specializes in delivering superior IT solutions using ERP systems, with a special focus on SAP products. Rohana has been working with SAP since 1992. During his career he has assisted multiple clients on detailed system correction projects, such as correcting inventory balances, controlling area reorganizations, retrospectively activating group currency, and optimizing inter-company accounting transactions. He has spoken at many SAP conferences and has published more than 20 articles in Financials Expert, SCM Expert, and SAPtips on various aspects of SAP. His presentations have focused on Financials module selection, the order-to-cash process, global rollouts, business segment reporting, cross-module integration, and the financial impact of SCM transactions. Rohana is widely acknowledged as a leading SAP expert. Rohana is a Fellow of the Institute of Chartered Accountants in England & Wales. Previously Rohana has worked with the consulting practices of Accenture, Deloitte, and PwC.

Rohana will be presenting at the upcoming SAPinsider Financials 2018 conference October 16-18 in Prague. For information on the event, click here.

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