The document discusses SAP's S/4HANA Credit Management solution. It provides an overview of the solution and how it can help companies make better credit decisions, automate customer credit risk monitoring, and integrate different credit agencies from various countries. The solution offers standardized deployment with flexibility and scalability. It allows companies to include external credit data in their scoring models and react instantly to changes in customer ratings.

1. April 2020
Joe Torres, DYCSI
Solution Overview
SAP S/4HANA Credit Management

2. 2CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Todays Economy requires Predictable Risk Assumptions
How to provide an accurate customer scoring to reduce risk of payment default
“I want to make make better credit decisions and
automate customer credit risk monitoring”
“Different agencies in different
regions required”
“Are we using up-to-date and
best-in-class ratings for customer
scoring & limit determination”
“How to concentrate on most
profitable customers”
“How can we integrate different credit
agencies from various countries?”
“How can we reduce
implementation & maintenance
effort of integrations”
“Are we notified if a customers
creditworthiness is changing?”
Head of
Global IT / CIO
Head of
Finance & Credit
Manager
“I want a simplified and state-of-the-art
user experience”
“Where do we store sensitive master
and transactional data ?”

3. 3CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
A comprehensive Portfolio for the CFO
Covering All Business Areas Across All Roles
SAP S/4HANA Finance Chief Financial Officer
VP of Finance
Head of Corporate
Reporting
Corporate
Treasurer
Head of Finance
Operations
Chief Compliance
Officer
Financial Planning
& Analysis
Accounting &
Financial Close
Treasury
management
Financial Operations
Governance, Risk &
Compliance for Finance
Strategy Development and
Translation
Accounting
Payments and Bank
Communications
Receivables Management
Enterprise Risk
Management
Planning, Budgeting,
and Forecasting
Entity Close
Cash and Liquidity
Management
Invoice Management and
Accounts Payable
Controls and Compliance
Management
Profitability and Cost
Management
Corporate Close
Debt and Investment
Management
Real Estate Management International Trade
Monitoring and Reporting Reporting and Disclosure Financial Risk Management
Travel and Expense
Management
Fraud Management
Financial Close
Governance
Risk Management for
Commodities
Financial Shared Services Audit Management

4. 4CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Receivables Management: automation solutions for core A/R
Credit Evaluation and Management
Embed proactive credit management in transactional processes and portfolio analysis.
Billing and E-Invoicing
Deploy a customer bill payment portal or an e-billing process.
Collections Management
Proactively manage customer collections and customer service.
Dispute Resolution
Clarify and resolve customer payment disputes quickly and efficiently.
CoreReceivablesManagement
Accounts Receivable – standard process automation for core invoice-to-cash
Manage all financial accounting–related aspects of customer accounts receivable.

5. 5CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP S/4HANA Cloud for credit integration helps you …
…using external credit risk information to
make better credit decisions
and to automate customer credit risk
monitoring

6. 6CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP S/4HANA Cloud for credit integration
Introducing a new way to automate customer credit risk monitoring
▪ Respond immediately to changing
credit conditions
▪ Reflect external ratings updates
immediately in your scorecards
▪ Link credit risk monitoring services
from leading credit experts with your
S/4HANA or ECC system
▪ Improve your scorecard accuracy
Automate credit management for >85% of your customer portfolio

7. 7CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Credit Management – Integrated Rating Agencies
Simplified risk monitoring with credit reports from your preferred rating agencies
Credit Decisions
▪ Automated (standard)
▪ Order-triggered
▪ Schedule-triggered
▪ Manual (exception)
Internal data External data (credit reports)
Alerts
▪ Changing conditions
▪ Process triggers
▪ Workflows
S/4HANA or ERP SAP S/4HANA Cloud for Credit Integration
SAP Credit Management
Embedded Scorecard
Days Overdue
Sales Revenue
External Rating
Foundation date
10
5
20
16
PointsPoints
Risk Class = 4 Credit Limit = 115,000 USD

8. 8CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Standardized Deployment, with Flexibility and Scalability
Rapidly connect to the world’s leading credit bureaus
Supported use cases
▪ Search & lookup
Determine the business partner’s unique identifier
▪ Import credit report
Store PDF in the Cloud and push key data fields into Credit
Management
▪ Manage monitoring
Register or stop monitoring updates for specific business partners
▪ Process monitoring updates
Review updated data sent by the agency and update credit analysis if
necessary
▪ Trigger investigation/research*
Request deeper investigation for a business partner not included in
existing database
*SAP Roadmap item

9. 9CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Why the Cloud Solution is the Safest Option
More powerful, enriched processes, faster implementation
▪ Choose from wide base of credit
bureaus, easily expand to other
agencies
▪ No duplicate data storage
▪ No sensitive transactional or
master data is stored in the cloud
▪ Feature packages delivered
every three months
▪ No down-times
▪ Leverage investment in existing
infrastructure
For more details on available and planned agencies,
please contact SAP Solution Management

10. 10CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
1
Lowered TCO
No setup costs to integrate external credit agencies and no
maintenance costs to keep the interfaces “running”
6
Automation of credit risk
Automatic calculation of credit scores, risk classes, credit
limits based on internal and external data
2
Easy to use
State-of-the-art user interface (Fiori) directly accessible out
of your core credit management system
7
Acceleration
Accelerate credit processing by reflecting external rating
updates in your scorecard and respond immediately to
changing credit conditions
3
Acceleration
Use SAAS to accelerate your projects and easily adapt to
new innovations
8
Process Automation
Reduce manual errors and increase straight-through–
processing rates and user productivity, incl. automatic
processing of monitoring updates
4
Scalability
No implementation effort when adding another credit
agency
9
Effective customer segmentation
Focus your credit team’s attention on key customer
segments
5
Natively integrated
More powerful, enriched credit management processes,
faster implementation
10
Extensibility
Broader choice of external credit agencies, choose the best
agency for a specific country and region
What S/4HANA Cloud for credit integration can do for your Business

11. 11CUSTOMER© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
▪ How do you include external credit data into your scoring model as of today?
▪ Do you manually download credit reports from various agencies today? Where are you storing
the reports?
▪ Who has access to the agency data?
▪ Which credit agencies are you currently dealing with, or are you planning to get into business?
▪ Do you use several agencies, maybe different per country or region?
▪ Which information from the agency is crucial for you and is considered in your scoring model?
▪ Do you react on customer rating changes instantly?
Discussion – supportive slide

12. Thank you.
Contact information:
Joe Torres
Managing Partner
+1 210-707-9230