What is negative credit event in SAP FIN-FSCM-CR - Credit Management?

SAP Term: negative credit event

• Component: FIN-FSCM-CR

• Component Name: Credit Management

• Description: Entry for payment history in an external or internal customer file. Negative credit events are, for example, affidavits, insolvency procedures, or foreclosure

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• Key Concepts: 
  A negative credit event is a type of credit risk that occurs when a customer fails to meet their contractual obligations. This can include late payments, defaults, or other financial difficulties. It is important to monitor these events as they can have a significant impact on a company’s financial health. 
  
  How to use it: 
  In SAP Credit Management, negative credit events can be monitored and managed using the Credit Risk Analysis (CRA) tool. This tool allows users to track customer creditworthiness and identify potential risks. It also provides an overview of the customer’s payment history and other relevant information. 
  
  Tips & Tricks: 
  It is important to regularly review customer creditworthiness and take proactive steps to mitigate any potential risks. This includes monitoring customer payment history, setting up early warning systems, and taking appropriate action when necessary. 
  
  Related Information: 
  For more information on SAP Credit Management and how to use the CRA tool, please refer to the official SAP documentation. Additionally, there are many online resources available that provide helpful tips and advice on managing credit risk.