Create Customer Credit Rating from SAP Application with Machine Learning Algorithms

The sales order process in SAP for various customers can be configured and managed to track Quotation to Payment process. We had run an experiment and monitored the sales order and the payment process in SAP application. Based on the historical sales data that may include quantity, price , value and payment received we ranked customers from rank of 1 to 6 using supervised learning classification technique. Customer ranking can allow organization to either allow additional credit or tighten the payment terms.

Using machine learning algorithms credit rating/ customer ranking that will allow a business unit to improve business relations. volume terms, and credit terms. For example, we may allow customer to pay back to us within 30 days from the time of goods/service delivery to him. Alternately, in case of a better credit rating we may allow him to pay back in monthly installment on a certain date of every month. We may also provide him a certain discount if he pays back to us within the stipulated time frame.