What is FSCM (Financial Supply Chain Management) in SAP

Posted on by uplatzblog

FSCM stands for Financial Supply Chain Management in SAP (Systems, Applications, and Products in Data Processing). It is a set of solutions and tools that SAP provides to help businesses optimize and streamline their financial processes and management of the financial supply chain. FSCM encompasses various components and functionalities that assist organizations in managing their financial processes more effectively. Some of the key components and functionalities of FSCM in SAP include:

  1. Credit Management: This component helps businesses assess the creditworthiness of their customers and manage credit limits. It also provides tools for automating credit-related decisions.
  2. Collections Management: FSCM Collections Management helps organizations streamline their collections process by prioritizing collections activities and providing tools for communication with customers regarding overdue payments.
  3. Dispute Management: Dispute Management allows businesses to handle and resolve customer disputes related to invoices or payments. It helps in tracking and managing the resolution process.
  4. Cash and Liquidity Management: This component helps in optimizing cash flow and liquidity management by providing tools for cash forecasting, liquidity planning, and monitoring cash positions.
  5. Treasury and Risk Management: Although not always considered a part of FSCM, Treasury and Risk Management in SAP encompasses financial risk management, hedge accounting, and cash management to help organizations better manage their financial risks.
  6. Biller Direct: Biller Direct is a self-service portal that enables customers to view and pay their invoices online. It simplifies billing and payment processes.

The primary goal of FSCM is to improve cash flow, reduce credit risks, and enhance the efficiency and transparency of financial operations within an organization. It provides better insights into financial data, automates many financial processes, and helps organizations make more informed decisions related to their financial supply chain.