Comparison of SAP S/4HANA FSCM Credit Management and SAP ECC SD-based credit management

Onespire Ltd.


Financial stability and efficient management of business processes are crucial for companies.

SAP offers two different approaches to credit management, one is SAP S/4HANA FSCM (Financial Supply Chain Management) Credit Management and the other is SAP ECC SD (Sales and Distribution) based credit management.

In this article, we analyze these solutions in detail in order to help you understand what changes have occurred with the introduction of this new type of product in SAP S/4 HANA.

Overview of credit management

Credit management is a well-defined process and function in the field of corporate finance. The goal of credit management activities is to ensure financial stability, optimize liquidity, and minimize financial risks.

Credit management covers the control of creditworthiness related to business transactions with buyers, the determination of credit limits, the management of payment terms and the collection of buyer receivables.

Comparison of credit management functions and main features of the two modules

Performance and speed

SAP S/4HANA FSCM uses the latest in-memory database technology (IMDB), which enables fast data access and processing.

In contrast, the credit management solution based on SAP ECC SD works on a traditional database, which results in slower operation and longer processing time.

So, S/4HANA FSCM also offers exceptional performance and speed in managing credit management processes.

Real-time analytics and reports

The S/4HANA FSCM credit management solution enables real-time analysis and reports that provide immediate insight into financial data. In the case of the SAP ECC SD-based system, updating and analyzing data may take longer, which may lead to slower results in decision-making.

Integration with other modules

S/4HANA FSCM is closely connected to other S/4HANA modules such as finance, accounting, and sales. As a result, company processes can be operated in a uniform and well-coordinated manner.

The ECC SD-based system is basically integrated with the SD and FI modules only, on the other hand, in S/4HANA’s new type of credit management, customer items managed on Contractual Current Accounts (FI-CA module) can already be taken into account in connection with credit limit determinations.

In addition, with the help of the new type of Credit Management, it is possible to transfer data from various SAP solutions to a central system online through standard connections, so that a centralized credit management system can also be created.

SAP FSCM credit management figure

User experience and manageability

S/4HANA FSCM has a modern and user-friendly interface that simplifies the use of the system and reduces the possibility of user errors.

The ECC SD-based credit management solution has a more traditional user interface, which is less easy to learn and manage.

Data entry and reporting options related to Credit Management became available on the Fiori interface released with SAP S/4 HANA. These new reports present the data that can be extracted from the module faster and much more interactively, thus helping daily operations and faster decision-making.


SAP plans to replace the ECC systems with the S/4HANA platform, so the new developments for the older technology are no longer planned to be implemented in all cases.

The SD-based Credit Management available in ECC will be automatically eliminated with the SAP S/4 HANA conversion and only the FSCM-based solution will be available. Thus, during an S/4 HANA conversion or a new green field implementation, our customers can already meet the state-of-the-art solution.

SAP FSCM FI-AR credit management figure

What’s new in SAP S/4 HANA FSCM Credit Management

SAP S/4HANA FSCM represents a new level in the field of financial processes and also offers many new functions in the field of credit management. Below are some of the outstanding new features of the SAP S/4HANA FSCM credit management solution.

In-memory data management

SAP S/4HANA FSCM uses the latest in-memory database technology, which enables the system to handle large amounts of data in real time. This feature supports faster and more efficient credit evaluation and speeds up business decision-making.

Real-time risk management

With real-time data access, SAP S/4HANA FSCM makes real-time risk management possible. In this way, companies can immediately detect and manage potential risks, which is crucial for maintaining financial stability.

Automated credit evaluation processes

With the help of new functions, SAP S/4HANA FSCM can perform automated credit evaluation processes. With the help of intelligent machine learning algorithms, the system automatically evaluates the creditworthiness of customers, thereby minimizing the need for human intervention and increasing the efficiency of the process.

Tight integration with other SAP S/4HANA modules

SAP S/4HANA FSCM is tightly integrated with other S/4HANA modules such as financial accounting and sales. This close integration enables uniform management of processes and real-time information flow within the company.

User-friendly interface

SAP S/4HANA FSCM has a new, modern, and user-friendly user interface. This simplifies the work of users, thereby increasing the usability of the system and reducing the possibility of errors.

Predictive analytics and reports

SAP S/4HANA FSCM provides predictive analytics and reports that help companies identify future financial challenges and opportunities. Through predictive analytics, companies can better prepare for business changes.

Mobility and accessibility

The new SAP S/4HANA FSCM provides the opportunity for mobility and access on a cloud basis. This allows users to access credit management functions anywhere and anytime, increasing the flexibility and adaptability of the system.


The new functions of SAP S/4HANA FSCM credit management represent a significant advance in the field of financial processes and credit management. With real-time data, automated processes and predictive analytics, companies can manage financial challenges more effectively and proactively, contributing to their business success.

It is also important to note that in terms of license the FSCM Credit Management functionality has a basic package, which is available within the basic S/4 HANA, but the purchase of a separate license may be required for the extended functionalities.

At Onespire Ltd., we have successfully implemented FSCM Credit Management and other related modules for many clients during our greenfield S/4 HANA projects, and these systems are successfully supporting the given business processes from the credit management side.

SAP FSCM post illustration

If you need support regarding the SAP S/4HANA FSCM credit management module, please contact our company’s Finance, Accounting and Controlling Center!

Comparison of SAP S/4HANA FSCM Credit Management and SAP ECC SD-based credit management

by Álmos Kozma

Images made with generative AI by Vanda Kocsis

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