Make SAP Automatic Credit Management Work for You

  • by Dr. Stef G.M. Cornelissen, MBA, SAP Business Consultant, Sperry Partners BV
  • February 15, 2006
Credit management will likely always be a manual, ad hoc process to some degree, but you can make it easier. Learn how to use a tool you already have to automate the process as much as possible.
Key Concept
SAP Automatic Credit Management first became available with R/3 Release 3.0. Using settings in FI and Sales and Distribution (SD), it prevents the shipping or selling of goods to customers whose credit status is doubtful. Extensive reporting allows for in-depth analysis of current risk and payment history.

Cash is king. Our systems should identify customers with bad payment behavior or with high financial risk before any harm is done. SAP Automatic Credit Management blocks activity at the right moment: before the goods have left.

I’ll explain the settings available for automatic credit management in the sales process in all releases since R/3 3.0. With these settings you can control system behavior for customers whose credit status you no longer trust. The automatic process determines the system reaction each time a sales order or delivery is created/changed. The system gives a warning, blocks the document, or allows further processing depending on the actual customer credit situation. It takes into account payment behavior, credit limits, and current total credit exposure.

Dr. Stef G.M. Cornelissen

Dr. Stef G.M. Cornelissen, MBA, is an experienced international SAP business consultant from the Netherlands with certifications in FI, CO, and SD. He took part in important international projects involving the large Dutch multinationals. Before specializing in SAP, he worked as a management consultant and was a senior advisor to the Board of Directors of the University of Nijmegen. Stef's academic background is in business administration, economics, and organizational science. He is the owner of Bowstring BV and principal partner at Sperry Associates.

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