Business Process in SAP Credit Management Part 4: Credit Rules Engine

Topics from this unit:

• Formula editor: fields and functions, enhancement possibilities using BAdIs
• Creation of creditworthiness and credit limit formulas using the formula editor
• Rule for the credit check
• Events and Follow-Up Actions

Controlling Risk Evaluations



Formula editor



A scoring formula or credit limit formula is derived from several calculation steps.
A formula step can be:

• A condition (checking the value) z A substitution (setting scoring value) z An exception (ignoring the calculation) …A formula uses:

• Parameters (values filled at runtime) z Functions You can enhance functions and parameters by implementing customer-specific BAdIs.

  Creditworthiness Formula…

  The scoring rules define the way a customer is scored. The result is a creditworthiness value or score.
  You define the scoring rules in the formula editor using the following input parameters:

• SAP Business Partner – Master Data (preconfigured field selection)

• Input parameters can be enhanced by BAdI implementation

• Result of the scoring formula:

• Creditworthiness value/Score (numeric or alphanumeric)

• “Valid to” date

• Risk class determined

• A valuation logis available to clarify the results.

Credit Limit Formula

The credit limit formula determines how the credit limit proposed by the system is calculated.
You define the credit limit formula in the formula editor using the following input parameters:

• SAP Business Partner – Master Data (preconfigured field selection)
• Input parameters can be enhanced by BAdI implementation Result of the credit limit formula:
• Credit limit (numeric or alphanumeric)
• “Valid to” date A credit limit formula can be assigned for each rating procedure and credit segment. A calculation log is available to explain the credit limit proposal.

Check rule …

The check rule determines the steps that are taken to check the creditworthiness of a customer when a sales order is created, and leads to a credit decision about the order.
Available check steps:
* Dynamic/Static credit limit check
* Check for collateral, credit insurance
* Check for the maximum dunning level
* Check for the oldest open item
* Check for an order block set centrally by credit management
* Check for key figures for the customer’s payment behavior (for example, DSO)

Events and Follow-Up Actions



Summary…

You create scoring and credit limit formulas using the formula editor. Parameters (for example, business partner data) and functions are used as input parameters.
One scoring formula and several credit limit formulas (for each credit segment) are assigned to the rating procedure, which is assigned to each customer in the credit profile (SAP business partner).

The risk class is determined directly from the score. In Customizing, specific score ranges that do not overlap are assigned to each risk class. In Customizing for the check rule, the system determines the steps that are taken to check the score of a customer when a sales order is created. This may include (for example) the static check of the credit limit or the check of the highest dunning level. You can set up customer-specific process chains in SAP Credit Management using events and the follow-up actions that they trigger.