Supply Chain Finance (SCF) refers to a set of financial services and solutions that optimize the cash flow between buyers and suppliers in a supply chain. The goal of SCF is to improve liquidity, reduce costs, and enhance the financial efficiency of businesses by using various financing tools and techniques.

The buyer initiates the “Program” with his bank to provide the funding. The suppliers (one or more) are invited to join/onboard this program. Once the Supplier is onboarded, a ”Pairing” is established with the said terms and conditions defaulted from the buyer’s program. However, the terms and conditions on the pairing can be changed if required for the buyer supplier pair

SCF Config Set Up

Create and Release Program - CREPFP- This transaction is used to create, maintain and release

1. Program
2. Fees for the program and
3. Limits for the program.

• Program Maintenance:

 Maintain Program - DBIPFP  -  This transaction is introduced to set-up and maintain settings and validations such as maximum finance %, payment terms etc. in “Approved Payable Finance” business sector. The Program settings will be the superset for a Pairing in DOKA.

• Maintain Pairing Buyer/Supplier:

Create and Release Pairing Buying / Supplier - CREPSB This new transaction is used to create, maintain and release pairing definition setup between the participating “buyer and supplier” for the SCF modules

This transaction also follows the maker and checker concept. Accordingly, the status will be updated.

1.  Pending: When the user is still preparing the data.
2.  Active: When the entry is released

• Finance Base Documents :

Finance Base Document (DBXFBD)

         This Transaction is used to maintain code table field “Business sector” as an object type set in
finance base document transaction. Values available in the “Approved Payable Finance” and “Receivable Finance”.

This ensures that the invoices added manually in DBxFBD are grouped under respective business sectors. Therefore, it will be available for processing only in that business sector.

• Managers:

Managers

 Interface Manager -This Transaction “Interface manager” (IOITSK) has been created. It acts as a
workflow manager for outgoing services. It handles the interface calls related to
static data from/to external interface systems like RIVO.

• Workflow;

Workflow Entries

These Two transactions (INFIAR & DBWIAR) have been introduced for managing Working Capital Solutions (WCS) workflow entries.

1. Info WCS Interface data (INFIAR)
2. Editing WCS workflow Entries (DBWIAR)

• Integration/et-up for Front end system: 

With the aim to have a whole Supply chain finance offering globally, the product base version is continuously enhanced to allow integration with Front-end demo systems. This allows the bank to choose which front-end system it wants to connect to or xml messages that are sent out for a program which enables supplier onboarding possible in the front-end etc. Refer System Configuration DBxSYS for more details.

Refer Approved Payable and Receivable Finance articles for buyer and supplier finance workflow.