Explain SAP Credit Management.

SAP Credit Management helps you manage your customer’s credit line. Using a centralized system to process and check customer credit lines is especially important for companies with large customer bases. By integrating the financial and nonfinancial aspects of your customer base, SAP Credit Management can reduce credit risk and optimize credit terms for each customer. SAP Credit Management is a standardized credit-control solution that can integrate data from multiple systems – an advantage for vendors that need to distribute accurate customer credit information in real time. With this capacity, accounts receivable personnel can proactively reduce credit risks and eliminate losses on uncollected receivables. Sales personnel can use credit-limit information to manage individual accounts. SAP Credit Management makes it easier to issue credit to your best-paying customers. If you rely on external credit standards, SAP Credit Management can integrate credit-scoring information from third-party services. Combining external scoring standards with your own credit rules can improve decision making and reduce credit risk. A centralized credit-rules engine lets you segment customers according to their creditworthiness and payment reliability.This gives you a powerful decision-support capability for sales, marketing, and other customer-relationship functions. With the credit-rules engine, you can define your own rules for decision making and automate a large proportion of your routine credit decisions. Such automation makes it easier for the creditmanagement department to concentrate on processing the more difficult credit accounts. With SAP Credit Management, you create a credit case for processing credit-limit applications. Using the credit case, different parties in your company can request new credit limits for a customer. The credit case is routed to the work list of the corresponding credit manager, who can handle the application or send it to other parties for further review. Through this process,you can track any credit-limit decision in the system, identify which manager accepted or rejected a credit limit, and determine the reasons behind that decision. Through integration with a powerful set of preconfigured reports in SAP Business Intelligence, you can identify high-risk customers and plan special activities to reduce the risk of lossfrom those customers. Tools for credit portfolio analysis can help you compare the overall credit exposure of your company with its strategic goals. With this information, you can plan special marketing activities for profitable customer groups and adjust your pricing for high-risk customers.