Credit management with SAP Business One - control meets consistency

Credit management initially sounds like a topic that only concerns banks - until you realise as a company that overdue receivables and long payment terms can quickly become a liquidity trap. This is exactly where SAP Business One comes in: The ERP solution not only offers traditional accounting functions, but also integrated credit management with a system.

With SAP Business One, payment defaults can be avoided, receivables managed effectively and risks recognised at an early stage - without the need for clairvoyance. This allows companies to retain their cash flow optimise their financial controlling and create real planning security in the process.

Central functions of credit management

Individual credit limit - customised instead of a standard framework

For each customer, an individualised Credit limit define. This credit limit is automatically checked when creating or changing sales documents - such as quotations or orders. If the limit is exceeded, the system intervenes depending on the configuration with a warning message, a Credit freeze or an automatic booking stop. This allows companies to keep an eye on their solvency and avoid unnecessary bad debts.

Administration takes place directly in the Business partner master record on the "Terms of payment" tab. Optionally, the limit can be proposed from the assigned terms of payment. Differentiated control - for example by region, customer group or sales channel - is not provided for in the SAP standard. Additional customisations or add-ons are therefore required for targeted sales management or regional risk assessment.

Automated credit check - no room for surprises

When creating or changing a sales document (e.g. quotations, orders, deliveries), the automatic Credit limit check. Depending on the system configuration, SAP Business One can automatically display warnings when credit limits are exceeded, activate credit blocks or completely block the process by stopping the booking. In this way, the software supports proactive receivables management and protects the company's liquidity. This may seem rude - but it is also consistent and protects against unnecessary risk.

Blocks, authorisations, responsibility

If there is a lockdown, all is not lost. Authorised employees can approve or reject vouchers. The decision is logged in the system. Transparent. Audit-proof. And, with a bit of luck, even traceable.

Reports and early warning system - better to know in advance

SAP Business One delivers extensive Reporting apps: From the Credit limit utilisation lists of blocked documents through to the Early warning list - for example, for customers who have already used 80 % of their limit. The reporting works in real time and can be embedded in dashboards. The result: a quick overview of otherwise hidden risks.

Typical SAP credit management process

Master data maintenance:
Creating and updating credit data - including credit limit, risk class and credit segments. The role "UKM000 - SAP Credit Management" is typically responsible for this.
Credit check:
Automatic check for every sales receipt. If a voucher exceeds the limit, it is blocked or marked.
Processing of locks:
Authorised employees check the blocked processes, approve or reject them. Decisions are documented.
Monitoring & Reporting:
Regular analysis of credit utilisation and potential risks via reports, early warning systems and dashboards.

Additional benefits through integration and automation

SAP Business One does not stop at isolated checks. Credit management is closely interlinked with modules such as Distribution, financial accounting and bearings. Credit decisions have a direct impact on document releases, dunning or delivery logistics - a real advantage over solutions where such checks are carried out on demand.

Advantages of SAP credit management at a glance

Centralised control all credit decisions in one place
Automated checks and locking mechanisms
Real-time monitoring via dashboards and reports
Documented approval processes for blocked documents
Integration with sales and accounting, no isolated processes

No credit without control

Credit is a matter of trust - at least in the traditional sense. SAP Business One adds a healthy dose of control, automation and transparency. For SMEs, credit management is not an optional extra, but a necessary discipline. After all, recognising risks at an early stage saves trouble, liquidity bottlenecks and legal escalations later on. SAP Business One makes it possible - structured, documented and, in the best case, unobtrusively efficient.