Credit Check Rule Definition

Credit Check Rule in Order Management defines at what level the credit check should be performed and how the credit exposure is calculated. Options Tab:

Select the entity to perform credit checking against for your rule. Select from: Sales Order Sales Order Line Note: If you select Sales Order Line as your credit check level, the Use Pre-calculated Exposure check box will be checked and protected against update. If you choose to perform credit checking at the Sales Order level, you are limited to the system generating header level credit holds only. The Credit Hold Level field will default to Sales Order and is protected against update. Select the Credit Hold Level for your credit rule. Select from: Sales Order: Sales Order (order level) credit check is performed for the header Bill To site. Sales Order level credit checking provides backward compatibility with previous credit check versions. When credit

checking rules are defining using Sales Order as the credit check level, the credit check engine will examine order totals and evaluate credit exposure against the credit profile attached at header level. Holds will be always applied at header level. Use order level credit check when order lines always have the same Bill To Site as the Order Header. Sales Order Line: Sales Order Line (line level) credit check is performed against order line Bill To Sites. The credit check engine will group all order lines belonging to the same Bill To Site and check available credit for each specific Bill To Site. When an order line fails credit check, any remaining lines grouped with the same Bill To Site are placed on hold. Holds can be placed at either the order or order line level when you use line level credit checking. Use line level credit check when sales order lines are attached to different Bill To Sites and you want to use the credit profile defined at that level. Additionally, you can use line level credit check when you have defined customer relationships within your system and actively use them within Order Management. Using customer relationships, you can create sales orders with order lines attached to different Bill To Sites owned by different customers. Order Header level credit checking uses header level information ignoring different bill-to sites detailed at the line. Credit Check uses the credit profile attached to the customer Bill-to site defined at order (header) level. Credit checking at the Order Header level will use order totals and will evaluate credit exposure against the credit profile attached at header level, and holds are always applied at header level. Override Manual Release check box: This check box enables an order or line which had failed credit checking and then was subsequently manually released to be eligible for additional credit check processing. Select from: Yes: Manual Released Holds will be overridden. You must also enter a value within the Days to Honor Manual Release field. No: Manual Released Holds will be honored. The field Days to Honor Manual Release will be nonupdatable. 7. Days to Honor Manual Release: The field is used in conjunction with the Override Manual Release check box. If you enable the Override Manual Release check box, you must enter a numeric value greater than zero within this field. Manual Released Holds (Credit Checking Procedures) Each time a credit check failure occurs for order or order line, the corresponding order or order line is placed on credit check hold. However, prior to the credit check holds actually being applied, the credit check process determines: If a manually released credit check hold exists and

 If your credit check rule enables override of manually released holds (in conjunction with the value for Days to Honor Manual Release). If Override Manual Release is not enabled for your credit check rule, then manually released holds are honored and no additional credit checking will occur. If Override Manual Release is enabled, the credit checking process will validate if the release date is within the interval defined by the value of Days to Honor Manual Release. If the value is within the range defined, then manually released holds will be honored and additional credit checking is not performed. If the value is not within the range defined, credit checking can occur again and credit check holds can be applied if the order or lines fails the credit check process. 8. Select the conversion type to use when performing credit checking using your credit rule. The LOV for this field is limited to the values you define within the Oracle General Ledger Conversion Rate Types window. 9. Select the Check Item Categories check box for your credit rule if you wish to perform credit checking for sales orders by Item Categories defined for Order Management. 10. Select the Send Hold Notifications check box if you wish to send hold notifications whenever a credit
hold is placed for a sales order or order line. The notification is sent to the creator of the order.

Exposure Tab: Determine the type of credit exposure to use when defining your credit check rules
by selecting the Exposure Tab within the Define Credit Check Rules window.

Use Pre-calculated Exposure check box: Select the Use Pre-calculated Exposure check box for your credit rule if you wish to perform credit checking against pre-calculated exposure summary tables. When the first credit check rule that has the Use Pre-Calculated Exposure check box checked is successfully saved, the following message will display: This credit check rule uses pre-calculated exposure. Please run the Initialize Credit Summaries program to update the pre-calculated data. If the Use Pre-calculated Exposure check box is checked and the Include Open Receivables balance check box is checked, then Open Receivables Days is protected against update and is NULL. If the Use Pre-calculated Exposure check box is checked and the Include Uninvoiced Orders check box is checked, then Shipping Horizon Days is protected against update and is NULL. Include External Credit Exposure check box: Select the Include External Credit Exposure check box if you wish to include external exposure details imported into Order Management during the credit checking process. When an Oracle Order Management sales order is credit checked, the exposure data from the external system is included in the overall exposure check. The default value for this check box is un-checked (exclude external exposure details when performing credit checking). Receivables Balance Region: Open Receivables Balance check box: Select the Open Receivables Balance check box for your credit rule if you wish to include open receivables balances.

You must enable either the Include Open Receivables Balance check box or the Include Uninvoiced Orders check box in your credit check rule. You can activate both, but you cannot toggle both off. If you select both the Pre-calculated Exposure and Open Receivables Balance check boxes, you are unable to specify Open Receivables Days. Include Payments at Risk: If you enabled Include Open Receivables Balance in your credit check rule, you can indicate whether to Include Payments at Risk when calculating a customer's outstanding balance. Receipts at risk are remitted receipts that have not been cleared, or discounted (factored) receipts that have not been risk eliminated. If the performance of credit checking requires improvement you can toggle off this option. Open Receivables Days: If you enabled Include Open Receivables Balance, enter a value to indicate the range of dates for open receivables you wish to include for your credit check rule. Negative Number: Includes past due, current, and future open receivables up to X days beyond the current date. Positive Number: Includes open receivables with invoice dates X days earlier than the current date No Value: Includes all open receivables Uninvoiced Orders Region Important: If an order line has been interfaced to the Receivables interface table but hasn't been invoiced yet, the Order Management credit check engine will include this line amount as part of the uninvoiced order amount. Include Uninvoiced Orders check box: Select the Include Uninvoiced Orders check box if you wish to include uninvoiced orders for your credit rule. If you enabled Include Uninvoiced Orders: Indicate whether to include Freight and Special Charges for uninvoiced orders when performing credit checking. Select the Freight and Special charges check box to include Freight and Special Charges. Indicate whether to include Tax information for uninvoiced orders when performing credit checking Select the Tax check box to include Tax information for uninvoiced orders. Credit checking calculations on open receivables always include tax amounts and are not affected by the Include Tax option. If the performance of credit checking requires improvement you can toggle off this option. Indicate the number of scheduled shipping horizon days for your credit rule for uninvoiced orders to be included in your total credit exposure when performing credit checking. For example, if you enter 45, the total exposure includes only uninvoiced orders scheduled to ship within 45 days of the current date. Orders scheduled to ship after 45 days are not included when calculating exposure. Note: If the Use Pre-calculated Exposure check box is checked, Scheduled Shipping Horizon Days is protected against update. Indicate whether to Include Orders Currently On hold. Select the Inc lude Orders Currently On hold check box to include orders on hold within the exposure calculation for your credit rule. Indicate the Maximum Days Past Due.

The Maximum Days Past Due field value specifies the number of day that you will allow an invoice to be past due before holding the customers orders. During the credit checking process, Order Management will verify that no invoices for the customer have been past due beyond the number of days you specified with this field. If there are any such past due invoices, the order is placed on credit hold.