SAP Credit Management – Proactively Manage Credit Risk Across Your Enterprise

Learn how you can manage credit risk effectively, make credit decisions faster, reduce bad debt write-offs with SAP Credit Management. See how you can implement a consistent credit evaluation policy around the globe to analyze customer credit risk. Discover how finance executives can get a global view of credit exposure.

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    • SAP Credit Management. Proactively manage credit risk across your enterprise.
    • In this demonstration, you’ll see how the SAP Credit Management application helps you implement a global credit policy, assess a customer’s ability to pay, and manage ongoing credit lines with real-time updates.
    • Enabling you to make credit decisions faster, reduce bad debt write-offs, and lower costs and resource demands.
    • Implement a global credit policy. John is a credit manager at a large manufacturer.
    • He uses the analytics in SAP Credit Management to understand his company’s current credit-risk exposure, by credit segment, country, or risk class.
    • John can compare credit limits and exposures for his customers – no matter how many ERP systems there are in the background ‒ and, he can get a unified analytical view across the enterprise.
    • With SAP Credit Management, John can model sophisticated credit relationships, like holding companies and other company relationships.
    • He can monitor risk classifications and scores, critical customers based on external information, his company’s credit modeling, and the customers’ payment behavior.
    • Assess a customer’s ability to pay. Anna is a credit analyst who is in charge of reviewing new credit applications for customers.
    • She sees that some orders have been automatically blocked by the SAP ERP application because the credit limit has been exceeded.
    • With SAP Credit Management, credit checks can be set up to take place at various points in the production and logistical process
    • to help ensure that your company’s credit policy is being enforced for every customer transaction.
    • Anna reviews the customer’s financial situation, taking into account the customer’s past payment behavior and externally available data from credit-rating agencies.
    • All of this information is summarized in the score history. In many cases, the blocked orders can be released with a single click.
    • All of the information used to make the decision ‒ including the reason for the initial block ‒ is documented in the solution for future analysis, and available when needed, so decision making is faster.
    • Sometimes Anna needs to involve Marc, a credit manager, in the decision-making process.
    • SAP Credit Management uses the SAP Business Workflow tool to support the processing of credit limit requests.
    • Anna can pre-fill all of the required information, along with notes and supporting attachments, for review by Marc, the credit manager.
    • All of this documentation is added to the customer’s credit profile and becomes part of the customer’s master data. Credit managers like Marc have easy access to everything they need to make the final decision.
    • SAP Credit Management lets you create documents that record the reasoning behind each credit decision in an easy-to-understand format.
    • These documents meet country-specific legal requirements and help speed up processing.
    • Manage ongoing credit lines with real-time updates. Like many organizations, Marc’s company uses external credit-rating information in its approach to credit management.
    • He can configure and extend SAP Credit Management to integrate in real time with many external credit-information sources from credit bureaus and credit insurers.
    • Then, he can see the data displayed in context of the customer’s master data.
    • The data is updated in real time, so as credit-bureau ratings change with economic situations, the credit scores and rating information is updated automatically.
    • Combined with the integrated payment-behavior data from SAP ERP, Marc always has a complete picture of the customer’s creditworthiness and liquidity, which can help reduce bad debt write-offs.
    • Marc’s company also makes this information available to sales reps like Thomas, who is on the road.
    • The company uses SAP Credit Management ‒ integrated with the SAP Customer Financial Fact Sheet mobile app ‒ so the credit department can work more closely with the sales team.
    • Using this collaborative mobile app, which is available for iPhone, iPad, Android, or Windows 8, Thomas can get real-time credit information about customers ‒ wherever he is, whenever he needs it.
    • He can sort customers based on the utilization percentage of their credit limit,
    • to see immediately which customers have credit available and where limits are exceeded, which could lead to blocked orders and processing delays.
    • Thomas has easy, real-time access to key customer financial information: he is alerted if the payment behavior of this customer is seriously deteriorating or if there has been a rating downgrade.
    • The mobile app gives Thomas direct access to summarized analytical information in the customer information panel.
    • Key credit risk information including risk class, credit limit, and utilization are always up-to-date, and can help Thomas better negotiate with the customer.
    • As you have seen, SAP Credit Management can help you implement a global credit policy, assess a customer’s ability to pay, and manage ongoing credit lines.
    • This proactive approach can help you reduce bad debt write-offs, increase credit process efficiency, and improve sales and customer satisfaction by automating processes.
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