SAP FSCM Overview
SAP FSCM stands for SAP Financial Supply Chain Management (FIN-FSCM), optimizes the financial and information flows within a company and between business partners. This post will deal with SAP FSCM Components with focus on Credit Management, Biller Direct, Collections Management and Dispute Management in FSCM.
SAP FSCM Component
SAP Financial Supply Chain Management
SAP Financial Supply Chain Management contains the following components ( SAP FSCM Component,FIN-FSCM )
- SAP Credit Management ,FIN-FSCM-CR
- SAP Biller Direct ,FIN-FSCM-BD
- SAP Collections Management ,FIN-FSCM-COL
- SAP Dispute Management ,FIN-FSCM-DM
- SAP Treasury and Risk Management,FIN-FSCM-TRM
- SAP Cash and Liquidity Management ,FIN-FSCM-CLM
- SAP In-House Cash ,FIN-FSCM-IHC
SAP Credit Management (FIN-FSCM-CR)
Application for supporting and automating credit decisions
SAP Credit Management takes all information and automates credit scoring, credit decisions and calculations of credit limits through Credit rules.
The Credit score can be update automatically or manually for each Customer.
SAP Credit Management adds also a new functionality to integrate XML data from rating Agencies.
For Each Customer, SAP Credit Management allows to attach additional information such as bank record and credit reports.
It helps automate the credit decisions making
To sum up the advantage of SAP Credit Management:
- Through Credit Manager Cockpit in the Portal, Credit Data is collected from different sources and compiled into Customer Credit fast Sheet.
- Identify Risk Customer and debt through a Credit scoring
- Follow-up of Customer Payments
- Segmentation Customers by credit risk.
For technical detail about SAP Credit Management, check this post about SAP Credit Management Tables.
SAP Biller Direct (FIN-FSCM-BD)
Application for electronic issue of bills and payment
SAP Biller Direct is a web-base engine for invoicing. It reduces the time and cost of sending Invoices to customer. Add to that, It gives Vendors an online vision of their invoices (from SAP).
Customers can directly make payment for open items invoices (Direct debit or credit card ). But this functionality is not delivered by default and requires some configuration.
In order to use SAP Billing Direct, a standard internet browser is enough for Vendors to access the portal. It can provide the access via SAP Enterprise Portal, or any other portal using single sign-on tickets.
From the technical side, SAP Billing Direct can be integrated into the Supplier Portal or run as a stand-alone application based on J2EE.
- For List of SAP Billing Direct Table, check this post
SAP Collections Management (FIN-FSCM-COL)
Application for proactive receivables management
SAP Collections Management allows managing individual AR accounts. It allows AR Clerks to prioritize their dunning on Key Customers and deals with case when the Bulk Dunning is not efficient enough.
SAP Collections Management identifies the “bad” payers and automatically add them to Clerk Work Items with list of relevant actions to take.
The first step, having all required information from SAP Collections Management the clerk tries to contact the customer (by priorities).
The second step, clerk logs the customer promise to pay which can be monitored in SAP Collections Management. In the other case, clerk can log a Dispute Case into SAP Dispute Management.
- Check this post for list of SAP FSCM Collections Management Tables
SAP Dispute Management (FIN-FSCM-DM)
Application for efficient processing of receivables-related dispute cases
SAP Dispute Management adds a new credit control clerk in order to reduce the time consumed in dispute Management. It helps indeed to collect cash from customer faster.
The SAP Dispute Management process can be summarized into:
- Create a new dispute Case related and attach this case to open items on a document ( can be internal or external )
- Depending on Tasks, Assign roles to the dispute case, each role having different tasks. The tasks can include for example: question, enhance information, comment …
- Dispute Cases are now classified by processing status and the reason.
- If Actions must be taken to resolve the dispute, the dispute can be marked for follow-up
- If no agreement found for the dispute, the case may escalade to next management level
From Technical side, you will find all SAP Dispute Management Table in this post.
SAP In-House Cash (FIN-FSCM-IHC)
Application for optimizing payment transactions within and outside of the group
SAP Cash and Liquidity Management (FIN-FSCM-CLM)
Application for managing liquidity items
SAP Treasury and Risk Management (FIN-FSCM-TRM)
SAP Treasury and Risk Management is a series of solutions that are geared towards analyzing and optimizing business processes in the finance area of a company.