Managing credit effectively is a critical aspect for running a successful business. Establishing a viable plus stable credit management process will ensure the possible risks are addressed with every credit transaction. Implementing effective credit management systems, such as solutions leveraging SAP Financial Supply Chain Management SAP (FSCM), can lead to financial success in the short and long term.
The results of an ineffective credit management system will lead to cash flow problems, bad debt exposure, sales and revenue impact, increased risk of fraud, and compliance and audit risks.
Aevitas IT recently helped a customer to migrate from their standard credit management process to a more advanced process using SAP (FSCM).
Before the migration, the customer faced several challenges with their credit management process. These included the need to maintain a credit process to adapt to an ever-changing business environment, the ability to monitor billing and collections, and control the credit risk of sales transactions on time.
Aevitas IT’s solution integrated credit management under SAP (FSCM), offering a comprehensive solution for credit management. The SAP (FSCM) credit management system offers multiple credit segments and predefined reports to monitor and control credit risk effectively. This allows credit analysts or an automated credit analysis process to make information-based decisions and minimize bad debt exposure.
Aevitas IT’s team of experts worked closely with the client to identify their unique credit management needs and develop an SAP (FSCM) based solution that aligns with their business objectives. As a result, the implementation of the new credit management process has led to improved cash flows, minimized bad debt exposure, and long-term financial stability for the client.
The benefits of this new credit management policy are significant and include:
- Monitoring customer receivables and subsequent collections to ensure timely and strong cash flows.
- The ability to monitor credit exposure and control bad debts that may occur, ensuring credit blocked orders are monitored, and quick decisions are taken for processing.
- The inbuilt tools, like credit exposure and age analysis, facilitate better credit management decisions.
In conclusion, implementing an effective credit management system is a complex process that requires careful planning and execution. Aevitas IT’s solution leveraging SAP (FSCM) offers a comprehensive solution for credit management that is tailored to the client’s specific needs, leading to financial success in the short and long term.
By partnering with Aevitas IT, organizations can improve cash flows, minimize bad debt exposure, and ensure financial stability for long-term success.
We understand that providing excellent solutions to our customers is not just about technical expertise, but also about effective communication, timely delivery, and proactive support. Our team takes pride in ensuring that every project is executed with excellence from start to finish.
Click here to schedule your discovery call to see we can help you.