credit check1

7/25/2019 Credit Check1

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Oracle Credit Checking

OVERVIEW ............................................................................................................................................ 1

Freight and Special charges check box to include Freight and Special Charges.

Indicate whether to include Tax information for uninvoiced orders when performing creditcheckingSelect theTaxcheck boxto include Tax information for uninvoiced orders. Credit checking calculations onopenreceivables always include tax amounts and are not aected by the Include Tax option. Ifthe performance of creditchecking reuires improvement you can toggle o this option.

Indicate the number of scheduled shipping hori!on days for your credit rule for uninvoicedorders to beincluded in your total credit exposure when performing credit checking.Forexample" if you enter #$" the total exposure includes only uninvoiced orders scheduled to shipwithin #$ days of the current date. %rders scheduled to ship after #$ days are not includedwhen calculating exposure.Indicate the Maximum Days ast Due. The Maximum Days Past Due&eld value speci&es the number of day thatyou will allow an invoice to be past due before

holding the customers orders. 'uring the credit checking process"%rder (anagement willverify that no invoices for the customer have been past due beyond the number of daysyouspeci&ed with this &eld. If there are any such past due invoices" the order is placed oncredit hold.Save your work. Credit Checking! 11 !Credit ro"les%rgani!ation Credit )ro&les are a set of criteria that de&ne an operating unit*s credit policy forcredit control andorder credit checking. Credit )ro&les include the credit limit and pertinentdata needed to determine total creditexposure for orders undergoing credit checking.Credit)ro&le +imits ,ierarchy when performing credit checking-

Customer Site )ro&le

Customer Credit )ro&le

%perating nit 'efault Credit )ro&le'e&ne Credit )ro&les1. /avigate to the 'e&ne Credit )ro&les window.#.Select a value for your Credit )ro&le Type in theCredit Profle Type&eld. 0alid 0alues are



Item Category %perating nit 'efault$ote%■

If

Credit Profle Type = Operating Unit Deault" the Item Category &eld is disabled.■

IfCredit Profle Type = Item Category " the %verall Credit +imit &eld is disabled. Credit Checking! 1# !1nter remaining &elds that reuire a value" or update any &elds that contain a default valuebased upon theCredit Profle Typeselected-

Operating Unit-Select anOperating Unitname from a list of values if you are de&ning a %perating nit 'efault Credit )ro&le.

Item Category

-Select an Item Category name from a list of values if you are de&ning an Item CategoryCredit )ro&le.

Efective Date From/ Efective Date To

-Select the Eectie Date !romand Eectie Date Tofor your Credit )ro&le.

&olerance- 1nter a numeric value in theTolerance

&eld. Tolerance values are used to calculate extendedexposure limits during credit checking.For example" supposed you enter a value of $ forTolerance" and anCredit +imit of 234"444 S'. 'uring credit checking" the exposure credit limit wouldactually be 234"$44S'. 55Tolerance 6 34478 Credit +imit 9 3447.

Currency- Select a value in theCurrency &eld to limit the Credit )ro&le to a speci&c currency.

■

Order Credit 'imit - 1nter a value in the%rder Credit +imit



&eld" based upon the Credit )ro&leType. /ew orders may not exceed the value entered in the

Order Credit 'imit&eld if the checking processing defaults to the operating unit level. O(erall Credit 'imit

- 1nter a value in the %verall Credit +imit &eld for a %perating nit 'efaultCredit )ro&le Type. Total exposure within an operating unit for the particular customer may notexceed the valueentered in the%verall Credit +imit&eld if credit checking processing defaults tothe operating unit level. Credit Checking! 1) !Values that are ignored during the credit checking *rocess are%■

Credit Check■

Credit +old■

Credit Rating■

$ext Re(ie, Date If you wish to enable multi currency credit check" you must assign Credit sage :ule Sets toyour Credit )ro&le.Select the "ssign #ule $etbutton. The

"ssign #ule $etbutton is only enabled for the following Credit )ro&leTypes- Item Category

%perating nit 'efaultTo assign Credit sage :ules to Customer or Customer Sites Credit)ro&le Types" you must use the "ssignCredit Usage #ules window.1.).1 Credit -sage Rule et

The 'e&ne Credit sage :ules window enables a user to create and maintain credit usage rulesets that can beassigned to Credit )ro&les.Credit sage :ule Sets de&ne the set of currencies

that will share a prede&ned credit limit during the credit checking process" and enable thegrouping of currencies for global credit checking. sage :ules Sets ensure that if credit Credit Checking! 1/ !checking is enabled" that all transactions for speci&ed currencies go through the currencyconversion process and aresummari!ed by currency prior to the credit checking process.

;ou can de&ne a usage rule set for a single currency or multiple currencies.

;ou can choose to assign a global usage rule 5all currencies7 and then exclude one or morecurrencies fromthe rule set.

;ou can choose to de&ne multiple usage rules for multiple currencies within the usage ruleset.



;ou can choose to add or delete new Currency records for an existing sage :ule Set.sagerule sets consist of at least one usage rule9currency combination" and once a rule set isassigned to an %racle1ntity" the rule set provides processing defaults for determining creditavailability during multiple currency creditchecking processing routines.&o de"ne credit usage rule sets%1.

/avigate to the 'e&ne Credit sage :ules window.#.1nter a name for you rule set in the Usage #ule $et %ame &eld.).Select the <lobal 1xposure check box if you wish to enable the sage :ule SetFor globalexposure 5across operating units7. The default value for this check box is un= checked 5donotunable <lobal 1xposure for the usage rule set7. If you are unable to select the <lobal 1xposurecheck box"submit the Credit +imit sages :eport. :eview the report output and un=assign anyusage rule sets withdierent <lobal 1xposure options for the same credit pro&le./.Select the value Currency in the Usage Type &eld&

Credit Checking! 10 !0.1nter a currency in the Currency &eld. The Currency &eld can contain any Currency Codecurrently de&ned. The Currency &eld may also use the lookup "ll Currenciesto indicate the usage rule is for all currencies de&ned..Chose to exclude a speci&c currency for your usage rule by selecting the Excludecheck box. The default isunchecked" or /o.2.Save your work.3ssigning Credit -sage Rule ets

The >ssign Credit sage :ules form enables a user to assign credit usage rules sets formultiple currency creditchecking to Credit )ro&les.&o assign credit usage rules%1. /avigate to the >ssign sage :ules window.#.the data appearing in the upper region of the window defaults from the Credit )ro&le youhave ueried. Thisinformation is protected against update.). The multi=row section of the >ssign sage :ules widow enables you to select Credit sage:ule Sets to use withthe credit pro&le. ;ou select a %amefrom the +ist of 0alues" and the included and excluded currencies &elds willdisplay currencies

that the usage rule set consists of. These values are protected against update from thiswindow. Credit Checking! 1 ! Credit Checking! 12 !Deacti(ating Credit Checking

There are three ways to deactivate Credit Checking on an order- se an order type that does not have an assigned credit rule. 'e&ne the Customer )ro&le so that the Credit Check box is not checked.

se payment terms for which the Credit Check box is not checked.'eactivating CreditChecking does not automatically release orders previously on credit hold. ,owever" the nexttimeyou attempt to ?ook" )ick :elease or )urchase :elease 5for drop shipments7" )ack" or Ship



Con&rm an order whichutili!es a %rder (anagement Transaction type that enables creditchecking to occur at the speci&ed order points" or you perform an order change that triggercredit checking in theSales %rders window" %rder (anagement will releases the credit checkhold if the order or line meets thereuirements for successful credit check. Credit Checking! 14 !1./ &ransactionsEnter the Credit Checking rule in transaction ty*e 5orm 5or mixed order

ty*e Credit Checking! 16 !# Enter the credit limit as ,ell as credit order limit in ro"le% 3mounts tab Credit Checking! #7 !/. Enter a sales order ,ith item de"ned in Cor*ierra *ricelist8 Order &y*e% Mixed Credit Checking! #1 !0. When mo(ing to 'ine items tab automatic hold is a**lied Credit Checking! ## ! Credit Checking! #) !

. ress 9ook Order and a message *o*s u* : 3 hold *re(ents booking o5 this order;



Credit Checking! #/ !

2. &o Release the order 5rom hold click on actions and release hold



Credit Checking! #0 !



Credit Checking! # !

Oracle tandard Re*orts1.0.1 Credit Ex*osure Re*ort



The Credit 1xposure report can be used to analy!e your customers total credit exposure. Thereport can be run ineither detail or summary mode and is dependent upon the value selectedfor the #eport Typeinput parameter-■ The Credit 1xposure Summary :eport output details the credit limit" creditexposure and available credit for everycustomer" based upon the input parameters youchoose■ The Credit 1xposure 'etail :eport shows the credit limit" credit exposure andavailable credit for every customer"to include all ?ill To sites" based upon the input

parameters you chooseThe Credit exposure report includes detailed information for-■ %verallcredit limits per customer and customer site■ %verall credit balances 5exposure7 per customerand customer site■ :emaining available credit for either customers or customer sites. Theremaining balance is converted to the draftilyfunctional currency 5set of books currency of thecurrent operating unit7. >vailable credit is calculated by subtractingthe total exposure fromthe overall credit limit.■ :emaining available balance currently not attached to a speci&ccustomer credit limit as re@ected by transactionsthat have not undergone the credit checkprocess■ :isks incurred by performing transactions in currencies that are not under creditlimit control. These amounts arereported in the functional currency and they appear asunc'ec(edbalances.The report output includes both %rder (anagement and %racle :eceivables

balances" based on your Credit Check :ule de&nitions. Selecting a credit check rule for this

report enables you to choose combinations of credit balancetypes to include whendetermining your customers overall credit exposure. 1ach credit check rule can enableor disable the following credit balance types-

1xchange rate type

Include open receivables balance

Include payments at risk Include uninvoiced orders Include tax Include freight and special charges

Include orders currently on holdIf you wish to determine a customers existing credit exposureeliminating %rder (anagement credit balances" submitthe %racle :eceivables CustomerCredit Snapshot report which does not include %rder (anagement credit balances"whichaect the current available credit exposure of your customers.ubmissionIn the %rder (anagement :eports window" select Credit 1xposure :eport in the /ame &eld.arametersAhen you reuest a Credit 1xposure :eport" %rder (anagement provides you with thefollowing parameters. If youleave any parameters blank" this report output includes all recordsthat meet your other parameter criteria. In order toobtain a single credit exposure for aCustomer" enter the same value in the Customer /ames 5From9To7 &elds or theCustomer/umbers 5From9To7 &eldsCustomer ro"le Class <=rom>&o?

These &elds are optional.Customer $ames <=rom>&o?

These &elds are optional.Customer $umbers <=rom>&o?



These &elds are optional.Credit Check Rule

This &eld is reuiredRe*ort &y*e Credit Checking! #2 ! 'etailThis &eld is reuired.

Re*ort Out*ut%rder (anagement displays all report input parameters and respective input values selectedon the &rst page of thereport output. If you choose to run the report in detail mode 5selecting'etail for the input parameter :eport Type7additional credit usage details by Customer ?ill Tosite are included in the report output. >dditional summaryinformation is also provided.1.0.# Orders On Credit Check +old Re*ort

The %rders %n Credit Check ,old :eport identi&es all of the credit holds currently outstandingfor a customer withina date range" or identify why a particular order is on hold. %rder(anagement enables you to perform a credit check on customer orders and automaticallyplaces orders on hold that violate your credit checking rules.>ll balances are calculated asthey are using the on=line credit check rule" including the factor for shipments andreceivablesfor a certain number of days.

ubmissionIn the %rder (anagement :eports window" select %rders %n Credit Check ,old :eport in the/ame &eld.arametersAhen you reuest an %rders %n Credit Check ,old :eport" %rder (anagement provides youwith the following parameters. If you leave any parameters blank" this report includes allholds that meet your other parameter criteria. Inorder to obtain a single hold" enter the samehold in the From9To &elds.Customer $ame%ptionally" select the customer name that you want printed in this report.Customer $umber%ptionally" select the customer number that you want printed in this report.Order &y*e%ptionally" select the order type that you want printed in this report.Order $umber%ptionally" select the order number that you want printed in this report.+old 3**lied Date <=rom>&o?%ptionally" select a speci&c hold applied date or a range of hold applied date on which theholds were applied.Currency Code%ptionally" select the currency code that you want printed in this report.Re*ort Out*ut

The %rders %n Credit Check ,old :eport prints order information for orders on credit check

hold and displays thefollowing # report sections seuentially for each order selected.■ Customer Information■ Customer Credit +imit Information■ Customer %rders on Credit ,oldInformation■ Summary InformationCustomer automatically sorts the report. Aithin Customer"currency code" credit check rule name" and order number further sort the report. %rder(anagement displays all report input parameters and respective input values selected onthe&rst page of the report output. >dditional summary information is also provided.1.0.) 'ines on Credit Check +old Re*ortubmissionIn the %rder (anagement :eports window" select the +ines on Credit Check ,old :eport in the/ame &eld.arametersAhen you reuest a +ine on Credit Check ,old :eport" %rder (anagement provides you withthe following parameter. If you leave is blank" this report includes all order lines on hold that

meet your other parameter criteria.Customer $ame



Credit Checking! #4 !%ptionally" select credit order lines on hold for a speci&c Customer /ame you want printed inthis report.Customer $umber%ptionally" select credit order lines on hold for a speci&c Customer /umber you want printedin this report.Order &y*e

%ptionally" select credit order lines on hold for a speci&c order type you want printed in thisreport.'ine &y*e%ptionally" select credit order lines on hold for a speci&c order line type you want printed inthis report.Order $umber%ptionally" select credit order lines on hold for a speci&c order number you want printed inthis report.Item Dis*lay%ptionally" determine how you wish to display items on hold for the report output.Select from-

?oth- %rder (anagement will print both the Internal Item name and the internal itemdescription 5item asde&ned within the (aster Items window7

'escription- %rder (anagement will print only the Internal Item description

Flex&eld- %rder (anagement will print only the Internal Item name Item and 'escription- %rder (anagement will print both the ordered item name and the

associated ordereditem description %rdered 'escription- %rder (anagement will print only the ordered item description %rdered Item- %rder (anagement will print only the ordered itemThe default value is'escription.+old 3**lied Date <=rom>&o?%ptionally" select a speci&c hold applied date or a range of hold=applied dates for credit orderlines on hold.Currency Code

%ptionally" select credit order lines on hold for a speci&c currency you want printedin thisreport.Re*ort Out*ut

The +ines %n Credit Check ,old :eport prints order information for orders on credit check holdand displays thefollowing B report sections seuentially for each order selected.■ Customer%rder Information■ %rder +ine Credit +imit Information■ Summary InformationCustomerautomatically sorts the report. Aithin Customer" currency code" credit check rule name" andorder number further sort the report. %rder (anagement displays all report input parametersand respective input values selected onthe &rst page of the report output. >dditionalsummary information is also provided.1.0./ Outstanding +olds Re*ort

The %utstanding ,olds :eport reviews order holds for the customer or customers you select. This report displays theorder number" order date" ordered items" and order amount for eachorder line on hold for each customer you select.Customer" order number" order line" and thenorder line detail automatically sort it. ,old Comment are listed in thereport output" ifavailable. This report lists only orders on hold" not orders that have been released from hold.ubmission



In the %rder (anagement :eports window" select %utstanding ,olds :eport in the /ame &eld.arametersAhen you reuest an %utstanding ,olds :eport" %rder (anagement provides you with thefollowing parameters. If you leave any parameters blank" this report includes all outstandingholds that meet your other parameter criteria. Inorder to obtain a single outstanding hold"enter the same outstanding hold in the From9To &elds.Customer $ame <=rom>&o?%ptionally" select a speci&c customer name or range of customer names on orders you want

printed in this report.

Subect-Relationshi* bet,een Manaully Released +olds and Credit Checking Scenario >-3. Credit Check rule is at time of %rdering and )icking9)urchase :elease.D. %rder ison credit check failure hold.B. (anually release the credit check failure hold.Ahen the order ispick released" the order will pick. AhyE ?ecause the )icking9)urchase :elease credit checkrule honors manuallyreleased credit check failure holds.Scenario ?-3. Credit Check rule is attime of %rdering and )icking9)urchase :elease.D. The credit check rule for )icking9)urchase

:elease has %verride (anual :elease checked and 'ays to ,onor (anual :elease 34.B.%rder is on credit check failure hold.#. (anually release the credit check failure hold.$. /owyou pick release the order within 34 days of releasing the hold.>gain" the order will be pickreleased as it is within the 34 day window and )icking9)urchase :elease honors manuallyreleased holds.

Scenario C-3. Credit Check rule is at time of %rdering and )icking9)urchase :elease.D. Thecredit check rule for )icking9)urchase :elease has %verride (anual :elease checked and 'aysto ,onor (anual :elease 34.B. %rder is on credit check failure hold.#. (anually release thecredit check failure hold.$. /ow you pick release the order after 34 days from when the hold isreleased.If the credit exposure exceeds the credit limit for the customer9customer site" theorder will not pick release and go back on credit checkfailure hold. 'ays to ,onor (anual:elease says only honor manually released holds for a speci&c number of days. >s this orderwaspicked after 34 days from when the credit check hold was released" the manually releasehold is ignored and the order is eligible for creditchecking. Thus" the order will show it went onhold twice = at %rdering and )icking9)urchase :elease. If credit exposure does not exceed thecredit limit for the customer9customer site" the order will be pick released.

Scenario ?-3. Credit Check rule is at time of %rdering and )icking9)urchase :elease.D. Thecredit check rule for )icking9)urchase :elease has %verride (anual :elease checked and 'aysto ,onor (anual :elease 34.B. %rder is on credit check failure hold.#. (anually release thecredit check failure hold.$. /ow you pick release the order within 34 days of releasing thehold.>gain" the order will be pick released as it is within the 34 day window and

)icking9)urchase :elease honors manually released holds.

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