credit management brasil al

Credit ManagementOrder to Cash PM Brasil

Credit Management in Brasil

Abril 2011

Credit Management Brasil

• Credit Management Overview• Issues Found

– Wkf isn’t following the wkf hierarquy (IC);– Wkf doesn’t considering credit exposure (IC);– ZLXXDS029 have wrong values;– Pending workitens;– Wrong rejection reason on VKM4;– Missing procedure after the credit release;

• Possible Solutions

Credit Management Brasil – Overview

BR OTC Credit Management / Risk Management Overview (Normal Sales)

FinanceCredit ManagementSales and Log

(SD)

Yes

No

No

No

No

Submit to Credit Analises

VA01 - Interface

User Level have enought value to

Release?

Workitem pending for approval, Level 1

WKF

Order Avaliable to be processed by logistic process

Check Stock Avaliability

VA01 - Interface

Order Creation

VA01 - Interface

Workitem pending for next level

approval

WKF

Order Locked, Need to be released

Order Avaliable to be released at

vkm1 or vkm4 trx

VKM1 or VKM4

Customer have enought Credit

Limit?

Customer have Pending Payments?

Standart SAP Function

Wkf Task

Yes

User Approved ?

Yes

User ApprovedYes

Order Rejected NoNo

Maintain Credit Limit

FD32

Logistics Process...

Monitoring Tasks

Credit Master Sheet

S_ALR_87012218

Credit Overview

F.31

Early Warning List

FCV3

Customer Account Overview

FBL5N

Issues Found

• The first three issues reported are related to internal controls report;

• The other ones are related to complains about the operations related to the credit management.

• We would like to have a CCC-LA analises and sugestions about the possible (avaliable ways ) to solve these issues with the less efforts than as possible

Issues Found - Wkf isn’t following the wkf hierarquy

• Contextualization:– When the sales order is locked it automatically starts a wkf to the itens to be

evaluated according OOCU_RESP configuration to the roll 95000025 and 90200026

• Issues:– If the user releases the sales orders by VKM1 or VKM4 transactions it don’t follow

the configuration rolls and release all itens without consider the flow estabilshed on the configuration rolls;

– If the block is because the open itens the workflow don’t go to the next level, releasing by the approval of the item 1, and the message of the workflow for those cases are not clear enought (bring with 0 value)

• Workaround:

• Incidences/Evidences:– SR10173499 - BR WKF:(L) Erro aprovação wkf

Issues Found - Wkf doesn’t considering credit exposure;

• Contextualization:– When the sales order is locked it automatically starts a wkf to the itens to be

evaluated according OOCU_RESP configuration to the roll 95000025 and 90200026.

• Issues:– If several orders are submited to the workflow in the same day, for each one the

credit management starts a workflow task considering the sales order value + the credit limit released, it is not considering the previous orders released or the orders submited for approval, therefore it is a risk to don’t compliance

• Workaround:

• Incidences/Evidences:– 10211353 - BR OTC:(L) Erro wkf quando recebido pedidos transmitidos simultaneamente

Issues Found - ZLXXDS029 have wrong values

• Contextualization:– There are a report called ZLXXDS029 that show us one overview about the credit

management and the approvals related to the credit exceptions

• Issues:– There are doubts about how is composed the values of the fields “Total Credit

Exposure" e " Credit Exceed” in this report because it doesn’t match the standart reports of the credit management;

– The column credit limit don’t consider the date especified in to the selection screen it is always bringing the the current credit limit registered to the customer

• Doubt:– According the internal controls report the MX affiliate use this report to see who

approved each sales order, but for Brasil the collum approver is always blank, we would like to know how they execute this trx to bring those data.

• Workaround:– Compose the values trough several transactions

• Incidences/Evidences:– To Add the e-mail

Issues Found - Pending workitens

• Contextualization:– Today there are two ways to release the sales orders, one by the standart SAP

functions and other by the workflow tasks

• Issues:– If the user releases the orders by the VKM1 or VKM4 the workitens keeps

pending into the SAP Inbox. Every day we have not less then 800 sales orders to be released by the credit management that are not feasible to release in a individual way by workflow.

• Workaround:– Ask to CCC to restart the workflow for those orders to clean the SAP inbox, but it

cost some fricew hours each time;

• Incidences/Evidences:– SR8982863 - BR WKF:(L) Limpeza workflows - FPEREIRA3– SR8985766 - BR WKF:(L) Limpeza workflows - LPIRES1– SR10064802 - BR SEC:(M) Erro liberação wkf

Issues Found - Wrong rejection reason on VKM4

• Contextualization:– The VKM* transaction allow the user to specify one rejection reason when block

one order, it is working ok on VKM1 but not on VKM4 or wkf

• Issues:– Instead the user set the rejection reason the transaction VKM1 always set the

rejection reason as ZG and it causes a problem to identify the right rejection reason, this problem was fixed on VKM1 but continue happening on VKM4 or by wkf.

• Workaround:– Ask to the user change the rejection reason into the workorder and use just

vkm1.

• Incidences/evidences:– SR6433597 - BR OTC:(L) Registro Ordens Recusadas pelo WF

Issues Found - Missing procedure after the credit release

• Contextualization:– After the Sales Order Creation at the VA01, when it is saved. The order execute

one procedure to check the stock avaliability, if there are no stock or the customer require complete delivery and we have just partial one this procedure set a rejection reason for the item with low stock avaliability.

• Issues:– If there are an stock receipt between the order creation and the order release for

a low stock order item the rejection reason is not filled

• Workaround:– Ask the user tho change the sales order filling the rejection reason or, retermine

the stock for the order and re-submite to credit approval

• Incidences/Evidences:– Several orders without RR and with no quantity confirmed every day.

Sugestions to Solve – to be analised

• Every day the credit management task is perfomed with the follow figures:

100%

20%

18%

2,5%

0,5%

0,05%

Credit Block 1st Level – Almost 800/d

Credit Block 2nd Level Almost 700/d

Credit Block 3rd Level 100/d

Credit Block 4th Level 20/d

Credit Block 5th Level 2/d

All Orders Almost 4000/d

Sugestions to Solve – to be analised

• Change the procedure to use the standart transaction a the first and second level and wkf procedure starting on the 3rd level could solve the points related to wkitens problem (change)

• The procedure to set the rejection reason could be done before the credit evaluation (change)

• The procedure related to VKM4 could be analise and fixed as was did with vkm1 (change)

• The wkf texts and procedures need to be reavaliated, to take the right values and folow the right flow;

• The proposed flow below could help in to the solution.

Sugestions to Solve – to be analisedBR OTC Credit Management / Risk Management Overview (Normal Sales)

FinanceCredit ManagementSales and Log

(SD)

Yes

No

No

No

No

Yes

Yes

NoNo

Submit to Credit Analises

VA01 - Interface

Check Stock Avaliability

VA01 - Interface

User Level have enought value to

Release?

Wkf Task

Order Creation

VA01 - Interface

User Approved

Workitem pending for next level

approval

WKF

Monitoring Tasks

Order Locked, Need to be released

Standart SAP Function

Credit Overview

F.31

Early Warning List

FCV3

Order Avaliable to be released at

vkm1 or vkm4 trx

VKM1 or VKM4

Order Rejected

Customer have Pending Payments?

Credit Master Sheet

S_ALR_87012218

Customer Account Overview

FBL5N

Customer have enought Credit

Limit?

Logistics Process...

Maintain Credit Limit

FD32

Order Avaliable to be processed by logistic process

Credit Review

ZLXXDS029

credit management brasil al

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