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bus req reg. credit management, collaterals, litigation

Posted on May 03, 2011 at 02:17 PM 156 Views

Hello

My client has requirements in the area of credit risk management where I see some gaps for FSCM credit management and I am thinking of modules Collaterals Management (not part of ECC6.0?), Loans Management (part of ECC 6.0), Claims Management (not part of ECC 6.0?). Can anyone advice me which modules would provide a technical solution?

Credit Management: per customer a credit limit is calculated based on certain business rules taking into account collateral value. This can be covered by FSCM credit management. Here I need to know which fields are available for collateral info in the business partner role UKM_000. Receivables are the open items / SD billing documents.

Collaterals management contains for the client the following processes: registration of customeru2019s collateral information: who received collateral(s), who registered collateral(s), who possesses collateral(s), who gave back collateral(s), collateral type, collateral value, collateral issue date, validity date, number of collaterals. Monitoring of value and maturity date of collaterals is crucial.

When using FSCM Credit Management in business partner role UKM_000 creditworthiness data can be added (I think fields collateral y/n and value of collateral but no other fields? and not more than 1? and can collateral type be selected? I think a lot of the data that my client needs cannot be stored in standard ECC FSCM Credit Management?!

Litigation process is the process of taking a case through court. In litigation, there is a plaintiff (one who brings the charge) and a defendant (one against whom the charge is brought). Technical solution for the Litigation process could be a dispute in Dispute Management with custom fields and maybe a workflow development?!.

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    author's profile photo Former Member
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    Posted on May 03, 2011 at 02:53 PM
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    Thanks for the post - can you let me know what your question is?

    SAP FSCM Credit Management could provide some of the functionality you require. You may need to hold some bespoke fields in the BP, and value for Credit rules.

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    • Former Member Former Member
      May 05, 2011 at 02:30 PM

      Thanks for your elaborate answer! My client is a wholesaler that sells and delivers beverages to stores, restaurants and bars. In the commercial agreement with the customer we ask for collaterals that could be executed when the customer does not pay his open invoices. Following types of collaterals are used:

      1. Bill of Exchange

      2. Mortgage

      3. Bank Guarantee

      4. Statement of Legal Obligation

      5. Third Party Guarantee

      6. Other.

      Some customers have loans with us for financing their real estate or refurbishment. Here we could use SAP Loans Management including registry of collaterals within that module. Can you also create collaterals in Loans Management and assign it to a customer without creating a loan? Probably yes. Then I have to check what collateral functionality is covered by Loans Management and what by CMS. Loans management mentions only collateral object and collateral. CMS mentions collateral object and collateral agreement. Is there a difference between the 2 systems in master data or is collateral the same as collateral agreement? Should the collateral agreement be assigned to the customer or also to the receivables (current accounts / trade transactions balance of all open items)? In CMS you have report u2018collateral expiry reportu2019 (must have for my client)or u2018batch collateral coverage gaps monitoru2019 or u2018display collateral monitoring with approved coverage gapu2019 that I do not think is available in LM?!

      I see that Loans Management offers collateral value calculation that is not possible in CMS?

      Most customers do not have loans with us. The Credit limit level depends on the type and value of collateral. I presume for these customers we would need SAP Collaterals Management as we will not use SAP Loans Management for these customers. We want SAP Collaterals Management to cover: work flow of a collateral (who received, who registered, who possesses, who gave back, ...), type, value, issue date, validity date. I hope SAP Collaterals Management covers this!

      Do you know what fields in FSCM credit management exist for collaterals (I believe in Business Partner Role UKM_000 you can store value and type. Are there any other fields available for collaterals? If these fields would be sufficient we would not need SAP Collaterals Management!

      u201CThere is a component in SAP CRM known as account origination which is used for this purpose. It gets the credit data from FSCM credit management, loan data from loans management, and collateral from CMS and calculates the score.u201D Very helpful remark! We have CRM already in place for the customers. I will advise to use FS-CMS and FS-CML. Do you have screenshots of the account origination solution? This would help demonstrate the functionality and how it works.

      To track Litigation->proposed solution Dispute Management:I agree, probably we need to create a separate RMS for litigation cases/ need to integrate with AR / set up workflow, a lot of development work!

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