Streamlining Credit Management with SAP BRIM Integration
Credit management enables companies to operate centralised credit management. The credit worthiness and payment behaviour of your business partners has an immediate impact on the business results of your company. Efficient receivables and credit management reduce the risk of financial losses and help you optimise business relationships with your business partners. SAP Credit Management (FIN-FSCM-CR) supports your company in determining the risk of losses on receivables from your business partners early and in making credit decisions efficiently and, in some cases, automatically. It also supports you in a heterogeneous and distributed system landscape: by using system-independent XML interfaces, you can also connect external non-SAP systems.
SAP Billing and Revenue Innovation Management (BRIM) can integrate with SAP Credit Management using XML. The applications connected (such as Subscription Order Management, Sales and Distribution, and Contract Accounts Receivable and Payable) report the commitment of a business partner to SAP Credit Management. These reports are then consolidated into the credit exposure in SAP Credit Management and checked against the current credit limit for the business partner. In addition to the credit limit check, you can also carry out other checks, such as the oldest open item, maximum dunning level, or last payment.
The following graphic illustrates the process of transactional data flow for credit checks and exposure updates between S/4 HANA BRIM and Credit Management.
When a customer signs a subscription with a service provider, the service provider must ensure the creditworthiness of this customer. To do so, a credit check is executed during the order (or quotation) capture process. In a subscription order or solution quotation, subscription items are enabled to run credit management functionalities, such as credit check, credit exposure, or documented credit decision. If an item is relevant for integration, by default, the item’s gross value is used to execute the credit check and create the credit exposure. The gross value is calculated using the contract end date or the end of the contract term (if the contract end date is unavailable).
In the business scenario, the initial check is executed in a subscription order or solution quotation, either if the item is released manually and the order or quotation is saved or released or when the order or quotation is submitted or accepted. After a credit check is executed the first time, it will always be triggered when the order or quote is saved or released. The credit check is always executed at the payer level. If there are different payers in a document, the amount per payer is calculated across all relevant items and sent as a single amount to SAP Credit Management.
If the credit check is successful, the credit exposure is created in the order or quote with exposure category 120 (Subscription Order & Solution Quotation). On contract activation, it is copied over to the contract with exposure category 130 (subscription contract). During billing of billable items, the exposure is transferred to one of the billing categories, 220 (unbilled BIT), 210 (billed BIT), or 200 (open item), depending on the BIT status when data is uploaded to SAP Credit Management. When the open item is paid, the credit exposure is finally cleared.
The subscription-specific credit exposure is created on an item or contract level with the following object keys in credit management:
If the credit check fails, a Documented Credit Decision (DCD) is created in SAP Credit Management for the corresponding payer, and the order or quote is blocked for further processing. The order or quote can be submitted or accepted only if all items pass the credit check successfully, and only then will the subscription contract be created. A credit manager can check such a DCD and either release it manually or do a recheck. Items that are sent to a credit check are updated with the system status Credit Check Ok or Credit Check Not Ok, depending on the result of the credit check. A cumulative status across all items is displayed at the header level. Completed items are not considered in this header status. Order or quote cannot be submitted or accepted if even a single item has a failed credit check.
If a BIT that is relevant for integration with SAP Credit Management is created (a one-off BIT, a BIT from a billing plan, or a recurring BIT from SAP CC), the field CM_OBJECT_KEY is filled with an indicator so that the corresponding contract exposure can be reduced when billable items are loaded to SAP Credit Management. It is assumed that a credit check is executed for all relevant BITs if a credit exposure exists for the corresponding BIT. For example, if you have a billing plan for the contract main and sub-items, it is assumed that both items are sent for a credit check. If this is not the case and for some reason only the main item was credit checked, you must implement a corresponding check in the BADI BADI_FKK_SOM_CM_BIT so that BITs from the sub-item are not considered relevant when reducing contract exposure.
If a BIT is reversed or excepted, this is also reflected in the contract exposure. If a BIT that already reduced the contract exposure is reversed or excepted, the contract exposure is increased again.
Once the BITs are billed and invoiced, the open items are created in FI-CA. To ensure credit decisions are based on a current dataset, you must therefore transfer the credit exposure (the total of open items) to SAP Credit Management at regular intervals. In the credit exposure update from Contract Accounts Receivable and Payable, the total of all current open items for the business partner is always transferred to SAP Credit Management.
In FI-CA, there are mass activities for the following functions:
- Sending the credit exposure of a business partner to SAP Credit Management
- Sending the payment behaviour summary to SAP Credit Management
- Replicating the rating values between Contract Accounts Receivable and Payable and SAP Credit Management
Further, FI-CA supports the following features, such as
- Commitment Query: In SAP Credit Management, you can specify whether the current credit exposure is queried in the connected components for a credit check.
- Partner Messages: Partner messages enable the credit exposure to be updated in SAP Credit Management for a business transaction across module and system boundaries, with no chronological gaps.
- Credit Information Display: You can display the credit information from SAP Credit Management, for example, in the Interaction Center.
- Credit Check: In Contract Accounts Receivable and Payable, you can also carry out a credit check for a business partner in SAP Credit Management.
- SAP Credit Management must run in the same SAP S/4HANA system as Subscription Order Management. A distributed landscape is not supported.
- Only subscription items are enabled. Service and sales items are not supported in a solution quote or subscription order.
- Integration with billing is only supported for Convergent Invoicing/FI-CA on a BIT level.
- You can release or trigger a recheck on a documented credit decision only from the Manage Documented Credit Decisions Fiori app.
- You can change neither the document currency nor the payer once a credit exposure is triggered for an item.
- Phased contracts are not supported.
- The pricing procedure must be in sync between the solution quote/subscription order and subscription contract. That is, the price calculation must always return the same value for all objects, otherwise, there will be inconsistencies in credit exposure and during delta calculation in a change order.
- The credit check cannot be triggered manually from the subscription order/solution quote.
- FI-CA does not support DCD case creation as an out-of-the-box functionality. No DCD case will be created when a credit check is performed from FI-CA using the function module.
- There are also certain limitations when using APIs:
- No credit check is executed on a change quote. It is executed during change processing in the change order.
- If a solution quotation is created and accepted in a batch process and the credit check fails, only an error is returned. No DCD can be created because no quote is created in this case.
Why choose Acuiti Labs?
Acuiti Labs is an SAP Partner and a Business Consulting company that specializes in providing services and solutions for SAP Billing and Revenue Innovation Management (BRIM). BRIM is an end-to-end solution that helps businesses manage their billing, revenue, and customer engagement processes. Acuiti Labs can help streamline credit management processes and enhance the customer experience by integrating BRIM with other SAP modules.
Here are some potential benefits of working with us for SAP BRIM integration:
- Expertise: Acuiti Labs has a team of experienced consultants who are knowledgeable in SAP BRIM and related technologies. We can help you identify the best solutions for your business needs and implement them effectively.
- Customization: Acuiti Labs can customize SAP BRIM to meet your specific business requirements, such as credit management, invoicing, subscription billing, and more.
- Integration: We have the capability to integrate SAP BRIM with other SAP modules and third-party applications, such as CRM, ERP, and payment gateways. This can help streamline your business processes and enhance the customer experience.
- Support: We provide ongoing support and maintenance for SAP BRIM to ensure your systems run smoothly and efficiently.
If you are looking to streamline your credit management processes and enhance your customer experience, contact us today! Acuiti Labs – a specialised technology company in SAP BRIM could potentially provide significant benefits. For more details on SAP BRIM, visit – https://www.acuitilabs.com/sap-brim/