What is 'debt recovery score' in SAP FI-CA - Contract Accounts Receivable and Payable?

debt recovery score - Overview

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: An assessment of the probability that overdue payments for a collection case assigned to a collection agency can be collected.

debt recovery score - Details

• 
  Key Concepts: 
  Debt Recovery Score is a component of the FI-CA Contract Accounts Receivable and Payable module in SAP. It is used to assess the creditworthiness of customers and to determine the probability of a customer defaulting on their payments. The score is based on a variety of factors, such as customer payment history, credit rating, and financial information.
  
  How to use it: 
  The Debt Recovery Score can be used to determine the risk associated with extending credit to a customer. It can also be used to set credit limits for customers and to decide whether or not to grant them payment terms. The score can also be used to prioritize debt collection efforts and to identify customers who may require additional monitoring.
  
  Tips & Tricks: 
  It is important to regularly review the Debt Recovery Score for each customer in order to ensure that it is up-to-date and accurate. Additionally, it is important to consider other factors when assessing a customer’s creditworthiness, such as their current financial situation and any changes in their payment history.
  
  Related Information: 
  The Debt Recovery Score is part of the FI-CA Contract Accounts Receivable and Payable module in SAP. Other components of this module include Credit Management, Payment Processing, and Collection Management.