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With markets slipping into slowdown it has become more difficult for a fresher to get a break into SAP." There is absolutely no opening for fresher in SAP". You must have heard this sentence so many times. Let's probe it.
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Let me first define who is a "fresher" in SAP job market.
I am certainly not referring to a just pass out from college. Here fresher means a candidate who does not have any real time implementation/support experience in SAP as a consultant.. He may have 10 years of experience in finance or he may have worked 5 years as SAP end user but unless he has the experience mentioned above, he is a fresher in SAP.
Based on my experience of interviewing candidates for SAP positions, I will give you an example of a top tier I IT MNC.
If there are 10 open positions then approximately there will be around 75 candidates. However only 5 candidates will have the qualification and experience required for the position and eventually at least 4 or all of them will get selected. So there is shortage of genuine SAP consultants and it's a cakewalk for the experienced candidates.
Now we still have around 5 positions vacant and remaining 70 candidates competing for it. This means there is still some chance for fresher/end users/core team members etc etc to get a break. One out of every 14 to be precise.
If you are among such candidates you must work towards 2 things:
o Improving your odds for selection.
o Trying to bring yourself closest to real time experienced candidates.
Here are some practical tips.
o Select your module very carefully keeping in view your educational background, domain experience and communication skills. Having said that I must caution you that you must not select a module blindly just because it's job market is hot. You need to have proper qualifications and domain experience to support it. All i mean is that if your qualification and experience makes you eligible for more than one module then go for the one which is hot in job market.
o Choose your training institute carefully. Quality of input matters a lot. Look for some real time consultant to help you out, if not train you. If you manage it half of the problem is solved.
o Don't enter job market unless you have developed sufficient competency.
o Your resume needs to be professionally written. I saw one resume which had 3 pages describing the candidates domain experience and as regards to SAP only sentence I could find was " implemented SAP in XYX ltd." Another one I saw had something more written about SAP. Infact it has mentioned names of sap training london 2 projects, the name of client and its duration but no information about what the candidate did in these projects.
o Look for sap client companies/staffing organizations/small IT consulting companies - simply because your odds for selection will automatically improve.
o Work hard on your technical skills. This is something you can do on your own without actually working as a consultant. One way is to join some sap yahoogroup and try to solve the issues. Your technical skills will matter most.
o Work on a mock project -Benefits will depend on the way you do it. However this will improve your technical competency for sure. For maximum benefit you should work with some fellow consultants of different modules and implement your current organization's business under the guidance of some real time consultant.
o Target hot areas in your module which few consultants know and there is a good demand for it. For example shipment, variant configuration for SD consultants. Typically companies are looking for candidates with sound knowledge of such areas and are not able to find candidates. Your chances will increase leaps and bounds if you know them.
o You need to have a very good understanding of SAP implementation process, it's various details and documentation process. However avoid getting into too many tools and details as this is just not possible to understand without actually working.
What is Credit Management?
Most enterprises extend credit to their customers. This literally means, selling their goods and collecting money at a later point of time. The amount of credit extended is determined by the customer's credit worthiness (Also called credit limit ). The number of days for which credit is extended is based on the payment terms associated with that transaction.
For ex., Customer A could be given a limit of $ 100,000 by the company. Now lets say the customer orders goods worth $ 20,000 with payment terms of Net 45 2 % ( Meaning if the customer pays for the goods within 45 days of purchase, he will be given a 2% cash discount. So instead of paying $20,000, the customer would need to pay ($20,000 - 2% of 20,000) = $ 19,600. This is to encourage timely payment of their bills and improve cash flow).
The same customer could also place another order for $ 60,000 and still be within his limit.
The value of Order A ( $ 20,000 ) and Order B ( $ 60,000 ) put together is called the credit exposure of the customer. If the customer places another order for $ 30,000 more, he now exceeds the credit limit set for him.
So, at the point of ordering (Order C) the customer's total receivables ( Value of Order A + Order B ) along with his current order ( Order C ) is checked against this limit. Since the customer exceeds the limit set for him, the order would be blocked.
Credit Exposure = Value of all Open Items + Value of the current Order
$ 110,000 = ( $ 20,000 + 60,000 ) + ( $ 30,000 )
This is a very simple example. In reality, it can get pretty complicated and not all the scenarios will be covered in this document.
Types of credit checks in SAP:
1. Simple check
2. Dynamic check
a. Static Check
b. Dynamic Check
Simple Check
This is very similar to the example we have discussed earlier. Simple credit check compares the Customer's credit limit to the total of all the items in the order and the value of all open items.
Credit Exposure in Simple Check = Value of all Open Items + Value of the Current Sales Order.
Open items are orders that have been invoiced to the customer but the payment for the invoices have not been received yet. The system can be configured to either block the delivery, send a warning or an error message when the credit exposure has exceeded the credit limit of the customer.
Dynamic Credit Check
Simple Check alone is not sufficient for most businesses. Instead of just considering open items only, there is a need to consider existing open orders and open deliveries as well. Also, for old and seasoned customers, even if the exposure exceeds the limit set for the customer, the order can still be processed because of the good payment history with the company.
However, for new customers credit needs to be strictly monitored. For the purpose of Credit Management, SAP allows us to recategorize customers into different 'Risk Categories'. Some examples of risk categories could be Medium Risk, High Risk, Low Risk etc.
Dynamic Credit Management can be broadly divided into 2 components.
Static Check Open Deliveries + Open Invoices + Open Items + Open Orders
Dynamic Check Open Deliveries + Open Invoices + Open Items + Open Sales Order Value with a Time period ( Called Time Horizon )
Horizon:
The use of time horizon can be best explained with an example. Most orders for the holiday season are pre-ordered because of the holiday rush. Orders might start to pile in as early as June, July. The delivery however is to be done in November or December.
For example, in August, Order A for $ 50,000 is a Pre-Ordered to be delivered in November.
Similarly for the month of December, another order, Order B is placed for $ 40,000 to be delivered in December.
In case of static check, the exposure is already $ 90,000. If a regular order is placed in August for another $ 30,000 the credit exposure would exceed the credit limit of $ 100,000. However, in case of dynamic check, a horizon of say 2 months would be used to exclude all orders for which the delivery has to be beyond the stipulated horizon.
So, order C would not be blocked in case of dynamic check.
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