
Advanced Credit Management (1QM)
The credit worthiness and payment behavior of your business partners has an immediate effect on the business results of your company. Efficient receivables and credit management reduce the risk of financial losses, helping you to optimize business relationships with your business partners. Advanced Credit Management supports your company with making an early determination of the risk of losses on receivables from your business partners and with efficiently making credit decisions. Using automatic calculation via preconfigured formulas, the Credit Controller can efficiently and quickly make credit decisions. Advanced Credit Management checks the exposure against the current credit limit for the business partner. You can check the credit limit when sales documents, service orders, or service contracts are created or changed. Moreover, credit limit requests can be executed. In addition, you can also perform other checks, such as oldest open item, maximum dunning level, or last payment. If the new order is blocked, the blocked order can be released or rejected by authorized staff.
Key Process Steps Covered
- Calculate rating, risk class, and credit limit for new or existing customers
- Create or change sales order
- Check exposure against credit limit
- Manage credit accounts
- Manage blocked orders
- Perform credit limit request
- Run credit management reports
Benefits
- Reduce risk of bad debt
- Calculate rating, risk class, and credit limit automatically (eventing)
- Perform credit limit requests
- Focus on reliable and profitable customers
- Check credit worthiness quickly
- Accelerate the process of checking a customer credit limit
Where is Advanced Credit Management(1QM) being used?
This Scope item is used in the following way:
- As a support function of Advanced Financial Operations within Finance Scope Item Group