What is composite credit appraisal in SAP SRM-BW - SRM Analytics?

SAP Term: composite credit appraisal

• Component: SRM-BW

• Component Name: SRM Analytics

• Description: General assessment used by Dun & Bradstreet to estimate the creditworthiness of a company. The financial situation, the payment history, the age of the company, the number of employees, the legal structure, the management experience, and also appearance in negative lists are taken into account.

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• Key Concepts: 
  Composite Credit Appraisal is a feature of the SAP SRM-BW SRM Analytics module that allows users to assess the creditworthiness of their suppliers. It combines financial data from multiple sources, such as credit ratings, payment history, and financial statements, to create a comprehensive view of a supplier’s creditworthiness. This helps users make informed decisions about which suppliers to work with and which ones to avoid.
  
  How to use it: 
  To use Composite Credit Appraisal, users must first enter the relevant financial data into the system. This includes information such as payment history, credit ratings, and financial statements. Once the data is entered, the system will generate a composite score that reflects the supplier’s overall creditworthiness. This score can then be used to make decisions about which suppliers to work with and which ones to avoid.
  
  Tips & Tricks: 
  When using Composite Credit Appraisal, it is important to ensure that all relevant financial data is entered into the system. This will ensure that the composite score is as accurate as possible. Additionally, it is important to regularly update the financial data in order to keep the composite score up-to-date.
  
  Related Information: 
  For more information on Composite Credit Appraisal, please refer to SAP’s official documentation on the topic. Additionally, there are many online resources available that provide additional tips and tricks for using this feature of SAP SRM-BW SRM Analytics.