Intelligent Automation in SAP Credit Release: Eliminating Manual Bottlenecks in Sales Order Processing

Authors

  • Vishnuvardhan Reddy Tatavandla Research Scholar

DOI:

https://doi.org/10.22399/ijcesen.3711

Keywords:

SAP, ECC, BTP, Credit management, Order to Cash, OTC

Abstract

Effective credit management in high-volume manufacturing and distribution environments, such as the SAP ERP Central Component (ECC), is crucial for maintaining an enterprise's financial stability. Despite its critical role in risk management, the sales Order credit block mechanism inherently causes substantial operational delays. This study investigates how the manual resolution of credit blocks in traditional SAP ECC leads to unpredictable bottlenecks in the order-to-cash cycle, adversely affecting delivery delays, working capital, delaying cash collection, and diminishing the customer experience. By substituting inefficient manual processes with a rapid, consistent, and transparent automated system, organizations can significantly mitigate, thereby directly expediting the cash conversion cycle. This study demonstrates that the architectural shift from manual ECC workflows to intelligent automation in S/4HANA and BTP represents a fundamental paradigm shift, enabling proactive risk management rather than reactive bottleneck resolution.

 

References

[1] Monk, Ellen & Wagner, Bret. (2008). Concepts in Enterprise Resource Planning. https://www.researchgate.net/publication/235720403_Concepts_in_Enterprise_Resource_Planning

[2] GAMBIT Consulting. "What is SAP Credit Management?" Accessed: June 05, 2025.

https://www.gambit.de/en/wiki/what-is-sap-credit-management/#c1241.

[3] Parimi, Surya Sairam. "AI-driven Financial Data Analytics for SAP ERP: Techniques and Applications." Social Science Research Network. Published: September 20, 2024 Accessed: June 05, 2025. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4934836.

[4] SAP SE. "Automate Credit Block Management for Sales Orders." SAP. 2025. Published:2025 Accessed: June 10, 2025. https://www.sap.com/products/technology-platform/use-cases/automate-credit-block-management.html.

[5] Dan. "Credit Sales." The Strategic CFO®, Published: July 23, 2013 Accessed: June 10, 2025. https://strategiccfo.com/articles/cashflow/credit-sales/.

[6] Sahoo, Subhasis. "What Are Credit Sales?" FinFloh. Published: May 11, 2025 Accessed: June 10, 2025. https://finfloh.com/blog/credit-sales.

[7] "Configure and Customize SAP Automatic Credit Management." SAP Community. Published: September 7, 2013 Accessed: June 10, 2025. https://community.sap.com/t5/enterprise-resource-planning-blog-posts-by-members/configure-and-customize-sap-automatic-credit-management/ba-p/13244996.

[8] SAP SE. "Customer Credit Management." SAP Help Portal. Published: May 2014 Accessed: June 10, 2025. https://help.sap.com/docs/SAP_ERP/3eb91abaa20c4dc696ab706d9d50cb74/6de01054a62b3018e10000000a174cb4.html?locale=en-US.

[9] Financial Accounting Standards Board. Accounting Standards Update No. 2014-09: Revenue from Contracts with Customers (Topic 606). Published: May 2014 Accessed: June 10, 2025. https://storage.fasb.org/ASU%202014-09_Section%20A.pdf.

[10] ITC Infotech. SAP S/4HANA FSCM Credit Management vs SAP ECC Credit Management. Published: 2016 Accessed: June 15, 2025. https://www.itcinfotech.com/wp-content/uploads/2016/12/SAP-S-4HANA-FSCM-Credit-Management-vs-SAP-ECC-Credit-Management.pdf.

[11] IBsolution. "What to Consider When Implementing SAP Credit Management." Published: July 25, 2022 Accessed: July 20, 2025. https://www.ibsolution.com/academy/blog_en/sap-s4hana/what-to-consider-when-implementing-sap-credit-management.

[12] valantic. "SAP Credit Management in SAP S/4HANA: Recognize Default Risks Early On." Published: March 22, 2022 Accessed: July 25, 2025. https://www.valantic.com/en/blog/sap-credit-management-in-sap-s4hana-recognize-default-risks-early-on/.

[13] SAP. "S4 HANA Credit Management Configuration Process v2." Scribd. Accessed: July 25, 2025.https://www.scribd.com/document/527283240/S4-HANA-Credit-Management-Configuration-Process-v2

[14] SAP PRESS. "Upgrades to Receivables Management in SAP S/4HANA." The SAP PRESS Blog. Published: July 2022 Accessed: July 25, 2025. https://blog.sap-press.com/upgrades-to-receivables-management-in-sap-s4hana.

[15] SAP SE. "What Is SAP Business Technology Platform?" SAP. Published: 2025 Accessed: July 25, 2025. https://www.sap.com/products/technology-platform/what-is-sap-business-technology-platform.html.

[16] IBsolution. "Why Process Automation on SAP BTP Is State of the Art." IBsolution. Published: July 15, 2025 Accessed: July 25, 2025. https://www.ibsolution.com/academy/blog_en/smart-enterprise/platform/sap-business-technology-platform/why-process-automation-on-sap-btp-is-state-of-the-art.

[17] Sreenivas, Sesh. "Pre-built Workflow Content to Handle Sales Order Approvals and Credit Block in SAP S/4HANA." SAP Community. Published: June 17, 2021 Accessed: July 18, 2025. https://community.sap.com/t5/technology-blog-posts-by-sap/pre-built-workflow-content-to-handle-sales-order-approvals-and-credit-block/ba-p/13500600.

[18] SAP. Manage Credit Block on Sales Order: Configuration and User Guide. Published: 2024 Accessed: July 15, 2025. https://api.sap.com/odata/1.0/catalog.svc/Files('Configuration_and_User_Guide_for_Manage_Credit_Block_on_Sales_Order')/$value.

[19] Chicago Manual of Style (17th Edition): SAP. Manage Credit Block on Sales Orders. Published: 2024 Accessed: July 15, 2025. https://api.sap.com/package/sap.build.pa.content.managecreditblockonsalesorders/overview.

[20] Gupta, Manish K. "Trigger a Process in SAP Build Process Automation from SAP Build Apps." SAP Community. Published: October 11, 2023 Accessed: July 15, 2025. https://community.sap.com/t5/technology-blog-posts-by-sap/trigger-a-process-in-sap-build-process-automation-from-sap-build-apps/ba-p/13656725.

[21] SAP. Manage Credit Block on Sales Orders: Documents. Published: 2024 Accessed: July 15, 2025. https://api.sap.com/package/sap.build.pa.content.managecreditblockonsalesorders/documents.

[22] Koti, Vamshi Krishna. "Transformation with SAP S/4HANA and SAP BTP Integration." NTT DATA. Published: January 23, 2025 Accessed: July 10, 2025. https://us.nttdata.com/en/blog/2025/january/transformation-with-sap-s4hana-and-sap-btp-integration.

[23] Gupta, Mansi. "SAP: How Credit Management Differs in S/4 HANA Compare to SAP ECC." Medium. Published: June 27, 2023 Accessed: July 10, 2025. https://medium.com/@mansi89mahi/sap-how-credit-management-differs-in-s4-hana-compare-to-sap-ecc-77401db043b9.

[24] Sagar. "SAP ERP vs SAP S/4HANA: Features, Benefits, and Challenges." NAV-IT. Published: May 15, 2024 Accessed: July 20, 2025. https://nav-it.com/sap-erp-vs-sap-s-4hana-features-benefits-and-challenges/.

[25] Ktern. "SAP ECC vs SAP S/4HANA: Key Differences & Benefits.". Published: June 25 2024 Accessed: July 2025. https://ktern.com/article/sap-ecc-vs-s4-hana/.

[26] SAP. "Manage Credit Block on Sales Orders (F4492)." SAP Fiori Apps Library. Published: June 2015 Accessed: July 10, 2025.

https://fioriappslibrary.hana.ondemand.com/sap/fix/externalViewer/#/detail/Apps('F4492')/S34

Downloads

Published

2025-08-23

How to Cite

Reddy Tatavandla, V. (2025). Intelligent Automation in SAP Credit Release: Eliminating Manual Bottlenecks in Sales Order Processing. International Journal of Computational and Experimental Science and Engineering, 11(3). https://doi.org/10.22399/ijcesen.3711

Issue

Section

Research Article