SAP Business Workflow enables the design and execution of business processes within SAP application systems: Workflow processes are delivered as content in the SAP Business Suite. Design the order processing of your purchase orders in SAP faster, more transparent and more favourable through the electronic release workflow.
The advantages of releasing the electronic purchase orders in SAP :
SAP Credit Management is an application that helps organizations monitor, evaluate, and control credit situations and credit allocations. It allows you to grant credit terms to your customers and also perform credit checks on the sales transactions. When you implement Credit Management in your SAP instance, you map your organization’s credit policies into the Credit Management application. Customers are aligned with these credit policy rules on the basis of the information collected from various sources, such as the customer’s past transactional history, the customer’s credit reports available from credit agencies like Dun & Bradstreet (D&B), the customer’s financial stability in the market, the geographical and political situations of the regions where the goods are sold, and so on. Each credit-related sales transaction is then monitored and evaluated with respect to these rules or policies, and the results of the evaluation help your organization decide whether to sell the goods on credit.
A credit check is a comparison of the customer’s credit exposure with the customer’s available credit limit setup in the credit master records. Credit exposure is a sum total of the open orders, open deliveries, open billings, open receivables, and open special liabilities. Credit limit is the maximum amount for which you allow your customer to purchase goods from you on credit. You store credit limits in the customer’s credit master records.
Whenever you create a new document that is relevant for credit checks, SAP calculates the current credit exposure for the customer and compares it with the customer’s available credit limit that is maintained in the customer’s credit master. If the exposure is more than the credit limit, the credit check fails.an example of applying credit management in a sales cycle.