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Configuring SAP® ERP Sales and Distribution by Ashutosh Mutsaddi, Kapil Sharma

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Chapter 11: Credit Management

Long-outstanding, uncollectable receivables are never good for the financial health of an organization. If a customer defaults on paying outstanding amounts by the end of the allowed payment term, the company needs to monitor that customer’s allowed credit more closely in future transactions. The credit and risk management function in an organization is therefore responsible for creating policies and exercising continuous control in order to minimize credit risks. The Credit Management application in SAP allows you to map your organization’s credit policies at various stages of the order to the cash cycle such that the policies act as the determining rules and help in controlling the credit decision-making process. ...

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