Credit Management in SAP S/4 Hana FSCM

Credit management deals with selling of goods and collecting money at a later stage. The credit limit for a customer depends on the payment method and customer payment history. The payment for the goods is based on payment conditions based on the business transaction.

Credit management deals with selling of goods and collecting money at a later stage. The credit limit for a customer depends on the payment method and customer payment history. The payment for the goods is based on payment conditions based on the business transaction.

Credit management is the process of deciding which customers to extend credit to and evaluating those customers' creditworthiness over time. It involves setting credit limits for customers, monitoring customer payments and collections, and assessing the risks associated with extending credit to customers.

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 automated.

SAP FICO (Finance and Controlling) is derived from FI (Financial Accounting) and CO (Controlling/Management Accounting). It is the Finance and Cost controlling module in SAP ERP where FI stands for Financial Accounting and CO stands for Controlling. Credit check is triggered by changes made in the document to values in any of the credit-sensitive fields. According to your Customizing settings, the system runs a check credit between changes or differences in the sales order data against the default values in the customer master record.