SAP Credit Management controls the creditworthiness and payment behavior of business partners.
SAP Credit Management enables a centralized operation. The connected components, such as Contract Accounting, report the commitment of business partners and SAP Credit Management consolidates these reports into a credit exposure and checks this against the current credit limit. This means that you can centrally manage the score, the payment behavior summary, and the credit exposure (that is, the total of all open items) of your business partners.
If you use SAP Credit Management, Contract Accounting ignores it's own creditworthiness functionality and accesses automatically the score in SAP Credit Management instead.
The open items of business partners are managed in Contract Accounting; the credit decisions take place in SAP Credit Management. To ensure credit decisions are based on a current dataset, you therefore have to transfer the credit exposure (the total of open items) to SAP Credit Management at regular intervals via the following mass activities:
- Sending the credit exposure of a business partner to SAP Credit Management.
- Sending the payment behavior summary of a business partner to SAP Credit Management.
- Replicating the rating values between Contract Accounting and SAP Credit Management.
You can transfer credit exposure from Contract Accounting to SAP Credit Management. In Contract Accounting, you can display the credit exposure of a business partner in the master record per credit segment and go from there to the details of the credit exposure.
The credit exposure in SAP Credit Management is increased by not yet invoiced items in Billing as well as open receivables in Contract Accounting. The credit exposure is therefore the sum of all open items, billable items, and billed items of the business partner that aren't yet invoiced.
The utilization of the credit limit by the credit exposure is one of the check criteria for a credit check in SAP Credit Management.