FICA-FSCM - Credit management

[SachinPatil]

Hi Experts,

We have activated FSCM in our system for FICA credit management integration. As per standard system, it will calculate the credit scores at business partner level.

So, I just want to know if in system, there is 1 BP - N CA relation. How it will work. Is there any option to consider credit score for CA rather than BP?

If not, how we can manage this scenario in credit management.

Scenario: 1BP is having multiple CA & 1 of them is having highly negative score & because of this other CA with good credit score may impact for their credit score. How to overcome this scenario.

Thanks,

SP

[SachinPatil]

This message was moderated.

[rahul_paldiwal2]

Hi Sachin,

Creditworthiness is defined at the Business Partner Level i.e. what is the risk profile of the customer.

The reason SAP has defined it at the BP level as one would always want to profile the customer as a whole instead of an account.

In the 1 BP - N CA scenario, creditworthiness of all the CA's will be accumulated at the BP level.

If you want to move it to the CA level then there is customisation involved. However it is better to question the logic of moving the creditworthiness to CA..

If you can provide more context that will be helpful.

Regards,
Rahul

[SachinPatil]

Hi Rahul,

Thanks for information provided.

Just to clarify few more things.

Assumed statement: As per the generic business process in all utilities, approx all have 1BP -nCA relationship. And standard FSCM credit management is providing the credit scores on BP level.

In this case, as I mentioned earlier 1 CA may impact overall score for the other CA & ultimately for concerned BP. So, to avoid this the option is to think to have credit scoring at CA level also along with BP

((Q1): is it possible at both?).

But,

(Q2) for CA level credit score, Is it feasible considering other dependencies like, Credit profile, creditworthiness data, Credit segment data which is stored at BP level (FSCM will be able to handle it).

(Q4) In case of CA how it can be handled.

Thanks,

Sachin

[rahul_paldiwal2]

Assumed statement: As per the generic business process in all utilities, approx all have 1BP -nCA relationship. And standard FSCM credit management is providing the credit scores on BP level.

In this case, as I mentioned earlier 1 CA may impact overall score for the other CA & ultimately for concerned BP. So, to avoid this the option is to think to have credit scoring at CA level also along with BP

((Q1): is it possible at both?).

Rahul >> Possible only through enhancements. However I would recommend against it. If a particular account ( CA) of BP has been paid on time , then the creditworthiness of that CA will be zero or minimal which anyways won't make a difference in the overall score of the BP.

But,

(Q2) for CA level credit score, Is it feasible considering other dependencies like, Credit profile, creditworthiness data, Credit segment data which is stored at BP level (FSCM will be able to handle it).

Rahul >> Again you are talking about enhancements and pushing data meant for BP to CA.

(Q4) In case of CA how it can be handled.

[AmlanBanerjee]

Hi Sachin,

Please find the answer to your queries-

In this case, as I mentioned earlier 1 CA may impact overall score for the other CA & ultimately for concerned BP. So, to avoid this the option is to think to have credit scoring at CA level also along with BP

((Q1): is it possible at both?).

Response- From a Business perspective, all the CA belong to 1 BP and that BP is responsible for making a particular CA credit  score good or bad. Moreover, as per norms, a credit score should be assigned to Physical entity (can be person/Organization) and not  to an account number , which doesn't have any significance outside the Utility company.

Further more, in most of the Countries, these Credit scores are being stored by Credit agencies centrally, which is used for Credit check purposes. So now if its at the account level, it doesn't make sense for these Credit Agencies to store the data, as they would not be to link them with a physical entity.

(Q2) for CA level credit score, Is it feasible considering other dependencies like, Credit profile, creditworthiness data, Credit segment data which is stored at BP level (FSCM will be able to handle it).

Response- I don't think so and would strongly recommend not to go down this path.

Thanks,

Amlan