Introduction

Financial Supply Chain Management is designed to optimize the financial supply chain with the aim of maximizing and retaining long-term profits.

Financial Supply Chain Management (FSCM) is an integrated approach to increasing the transparency, control, and supervision of all processes linked to the flow of capital, the result of which is a decrease of working capital, an increase in cash flow projection, and a reduction of process costs.

Financial Supply Chain Management (SAP FSCM) is an integrated approach to the giving better clarity and control over all cash related processes:

• Reduction of operating expenses

• Reduction of working capital 

• Better predictability of cash flow

• End-to-end integration of business processes

From ERP 2004 onwards, SAP allows a complete & integrated solution to manage your financial processes:  Financial Supply Chain Management.

As with other SAP products, this has also evolved over a period of time. Initially, Cash and Repository Management were also part of FSCM due to close integration needs but today they are part of Repository functionality. Although some of the functionalities were available in earlier versions profits were limited. Most of the different functional areas are well established and developed from functionality prospect while FSCM is a new functionality with very short knowledge and implementation experience available in the business.

Key functionalities/applications within FSCM are:

•    Electronic Bill Presentment and Payment - This application presents a better and more real time interfacing with the customers and vendors with added benefit of self-service for seeing the accounts as well as make electronic payments. It mainly provides to presenting the invoices and account statements to the customer and vendors over the internet. The key benefit is a decrease in overheads and cycle time correlated with this process for both - organization as well as its customer and vendors.

•    Credit Management -   Provides with functionality to manage credit policies and risks associated with the receivables centrally - even for summaries where the business is supported by multiple instances over the globe. Thus helps in implementing uniform credit policies and rules across the globe as well as have one view for a customer who is dealing in various countries. It also brings in a functionality of managing complicated customer credit account hierarchies and rules associated with it.

•    Collections Management - This application provides the functionality to manage the collections more efficiently. This is similar to the collection management functionality previously present in SAP FI-AR component with added features like devising collection strategies, sending payment reminders, portal catering to collection agents and managing agreements associated with payments from the customer.

•    Dispute Management - Facilitate and automate a lot of manual activities into the handling disputes related to payments related to receivables in electronic form. This also leads to better integration and flow of information over many stakeholders involved to resolve the disputes.

Some of the key benefits SAP FSCM brings in are:

•    Information available almost in real time to better manage the working capital and receivables thus reducing the cost associated with it

•    Reduction in manual activities, communication, and coordination efforts thus leading to reduction in overall cost of managing and doing activities in the receivables related process areas

•    Usage of business partners over much functionality provide more flexibility as well as streamline those data maintenance over the landscape

Vintage IT Solutions provide SAP FSCM Online Training, SAP HANA Training New York, SAP FICO Online Training, SAP BASIS Online Training,  SAP Simple Logistics Online Training, SAP HANA ADMIN Online Training, and SAP Training Atlanta etc.

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