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This use case describes one of the ways that the services in the Credit Management ES bundle could be used.

For More Information

If you want to learn more about this ES bundle, see Credit Management.

A sales clerk or sales department employee creates a sales order in SAP Sales and Distribution (SAP SD) on behalf of a customer. Before the sales order can be processed further, the credit manager must ensure that the customer has a sufficient credit score and that the total liability plus the order value does not exceed the customer's credit limit, so the next step is to run a credit check.

SAP SD calls the credit check functionality in SAP Credit Management by invoking the Check Credit Worthiness enterprise service operation, which uses the Credit Management Account business object. It provides data from the sales order as input to the credit check, including the customer, the order value, and the sales organization. The credit check takes place in SAP Credit Management.

Types of credit checks include statistical check of credit exposure, dynamic credit limit check with credit horizon, check for maximum dunning level, check for maximum document values, check for age of oldest open item, check for payment behavior index (this check requires a customer enhancement). The results of the check steps carried out are summarized, forwarded to SAP SD, and saved there in the status of the sales order. Exactly which credit checks are executed via Check Credit Worthiness depends on rules defined in the customer's credit master data record.

If the Customer Fails the Credit Check

If the credit check has a negative response, the credit limit is exceeded. The sales order is therefore blocked in the system to prevent further processing (for example, delivery of goods).

At regular intervals, the credit manager checks for blocked orders in SAP SD and reviews the customers' credit limits. (Alternatively, the credit manager can be informed via workflow when a customer fails to pass a credit check.) The credit manager analyzes the credit profile of the customer and checks whether the current credit limit corresponds to the default risk. If the situation warrants changing the credit limit, the credit manager (or the salesperson) can request a change to the credit limit (see use case 2 of Credit Management).

After increasing the credit limit, the credit manager calls up the list of blocked sales orders in SAP SD and selects the sales order to be checked again. The credit manager repeats the credit check for the sales order selected using the Check Credit Worthiness service operation. Since the result of this credit check is positive, the credit manager can save and release the sales order; SAP SD then sends an order confirmation to the customer.

If the Customer Passes the Credit Check

The customer passes the credit check, and the sales order can continue to be processed. A sales order that is accepted may trigger production or deliveries. This is a risk for the company since costs arise that customers pay later, possibly weeks or months later. The order value is therefore reported to SAP Credit Management as a liability. The Query Credit Commitment by Debitor service operation is invoked, which uses the Credit Management Account business object to provide SAP Credit Management with updated information about the customer's liability as a result of the accepted sales order. SAP Credit Management saves the order value in the line items in the credit account of the customer and updates the customer's total liability.

When Customers Are Nearing Their Limit

Using an early warning list (also known as a credit exposure list), a credit manager can identify customers whose credit exposure is approaching maximum. In SAP SD, the credit manager can block the acceptance of sales orders from customers thus determined as critical if these customers do not reduce their total liability via payment of open invoices.

The following table summarizes these steps and the associated enterprise services:


Enterprise Service Invoked

Step 1: The credit manager runs a credit check

Check Credit Worthiness

Step 2: If the customer fails the credit check, a credit limit change might be requested (see use case 2 in Credit Management) and then step 1 is repeated

(no enterprise service is invoked during this step)

Step 3: If the customer passes the credit limit check, the sales order continues to be processed, and the customer's liability must be updated

Query Credit Commitment by Debitor