Oracle Credit Checking

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

Indicate whether to include Tax information for uninvoiced orders when performing credit
checkingSelect the
Tax
check box
to include Tax information for uninvoiced orders. Credit checking calculations on
openreceivables always include tax amounts and are not affected by the Include Tax option. If
the performance of creditchecking requires improvement you can toggle off this option.

Indicate the number of scheduled shipping horizon days for your credit rule for uninvoiced
orders to beincluded 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.
Indicate the Maximum Days Past Due
. The
Maximum Days Past Due
field value specifies the number of day thatyou 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
youspecified with this field. If there are any such past due invoices, the order is placed on
credit hold.Save your work.
Credit Checking- 11 Credit Profiles
Organization Credit Profiles are a set of criteria that define an operating units credit policy for
credit control andorder credit checking. Credit Profiles include the credit limit and pertinent
data needed to determine total creditexposure for orders undergoing credit checking.Credit
Profile Limits Hierarchy when performing credit checking:

Customer Site Profile

Customer Credit Profile

Operating Unit Default Credit ProfileDefine Credit Profiles

1.
Navigate to the Define Credit Profiles window.
2
.
Select a value for your Credit Profile Type in the
Credit Profile Type
field. Valid Values are

Item Category

Operating Unit Default

Note:

If
Credit Profile Type = Operating Unit Default
, the Item Category field is disabled.

If
Credit Profile Type = Item Category
, the Overall Credit Limit field is disabled.
Credit Checking- 12 Enter remaining fields that require a value, or update any fields that contain a default value
based upon the
Credit Profile Type
selected:

Operating Unit
:Select an
Operating Unit
name from a list of values if you are defining a Operating Unit Default Credit Profile.

Item Category
:Select an Item Category name from a list of values if you are defining an Item Category
Credit Profile.

Effective Date From/ Effective Date To

:Select the
Effective Date From
and
Effective Date To
for your Credit Profile.

Tolerance
: Enter a numeric value in the
Tolerance
field. Tolerance values are used to calculate extendedexposure limits during credit checking.
For example, supposed you enter a value of 5 for
Tolerance
, and anCredit Limit of $10,000 USD. During credit checking, the exposure credit limit would
actually be $10,500USD. ((Tolerance + 100)* Credit Limit / 100).

Currency
: Select a value in the
Currency
field to limit the Credit Profile to a specific currency.

Order Credit Limit

: Enter a value in the
Order Credit Limit

field, based upon the Credit ProfileType. New orders may not exceed the value entered in the

Order Credit Limit

field if the checking processing defaults to the operating unit level.

Overall Credit Limit

: Enter a value in the Overall Credit Limit field for a Operating Unit DefaultCredit Profile Type.
Total exposure within an operating unit for the particular customer may notexceed the value
entered in the
Overall Credit Limit
field if credit checking processing defaults tothe operating unit level.
Credit Checking- 13 Values that are ignored during the credit checking process are:

Credit Check

Credit Hold

Credit Rating

Next Review Date

If you wish to enable multi currency credit check, you must assign Credit Usage Rule Sets to
your Credit Profile.Select the
Assign Rule Set
button. The
Assign Rule Set
button is only enabled for the following Credit ProfileTypes:

Item Category

Operating Unit DefaultTo assign Credit Usage Rules to Customer or Customer Sites Credit
Profile Types, you must use the
AssignCredit Usage Rules window.
1.3.1
Credit Usage Rule Set
The Define Credit Usage Rules window enables a user to create and maintain credit usage rule
sets that can beassigned to Credit Profiles.Credit Usage Rule Sets define the set of currencies
that will share a predefined credit limit during the credit checking process, and enable the
grouping of currencies for global credit checking. Usage Rules Sets ensure that if credit
Credit Checking- 14 checking is enabled, that all transactions for specified currencies go through the currency
conversion process and aresummarized by currency prior to the credit checking process.

You can define a usage rule set for a single currency or multiple currencies.

You can choose to assign a global usage rule (all currencies) and then exclude one or more
currencies fromthe rule set.

You can choose to define multiple usage rules for multiple currencies within the usage rule
set.

You can choose to add or delete new Currency records for an existing Usage Rule Set.Usage
rule sets consist of at least one usage rule/currency combination, and once a rule set is
assigned to an OracleEntity, the rule set provides processing defaults for determining credit
availability during multiple currency creditchecking processing routines.
To define credit usage rule sets:
1.
Navigate to the Define Credit Usage Rules window.
2.
Enter a name for you rule set in the Usage Rule Set Name field.
3.
Select the Global Exposure check box if you wish to enable the Usage Rule SetFor global
exposure (across operating units). The default value for this check box is un- checked (donot
unable Global Exposure for the usage rule set). If you are unable to select the Global Exposure
check box,submit the Credit Limit Usages Report. Review the report output and un-assign any
usage rule sets withdifferent Global Exposure options for the same credit profile.
4.
Select the value Currency in the Usage Type field
.
Credit Checking- 15 5.
Enter a currency in the Currency field. The Currency field can contain any Currency Code
currently defined. The Currency field may also use the lookup All Currencies
to indicate the usage rule is for all currencies defined.
6.
Chose to exclude a specific currency for your usage rule by selecting the Exclude
check box. The default isunchecked, or No.
7.
Save your work.
Assigning Credit Usage Rule Sets
The Assign Credit Usage Rules form enables a user to assign credit usage rules sets for
multiple currency creditchecking to Credit Profiles.
To assign credit usage rules:
1. Navigate to the Assign Usage Rules window.
2.the data appearing in the upper region of the window defaults from the Credit Profile you
have queried. Thisinformation is protected against update.
3
. The multi-row section of the Assign Usage Rules widow enables you to select Credit Usage
Rule Sets to use withthe credit profile. You select a
Name
from the List of Values, and the included and excluded currencies fields willdisplay currencies
that the usage rule set consists of. These values are protected against update from this
window.
Credit Checking- 16 Credit Checking- 17 Deactivating Credit Checking
There are three ways to deactivate Credit Checking on an order:

Use an order type that does not have an assigned credit rule.

Define the Customer Profile so that the Credit Check box is not checked.

Use payment terms for which the Credit Check box is not checked.Deactivating Credit
Checking does not automatically release orders previously on credit hold. However, the next
timeyou attempt to Book, Pick Release or Purchase Release (for drop shipments), Pack, or Ship

Confirm an order whichutilizes a Order Management Transaction type that enables credit
checking to occur at the specified order points, or you perform an order change that trigger
credit checking in theSales Orders window, Order Management will releases the credit check
hold if the order or line meets therequirements for successful credit check.
Credit Checking- 18 1.4
TransactionsEnter the Credit Checking rule in transaction type form for mixed order
type
Credit Checking- 19 2
Enter the credit limit as well as credit order limit in Profile: Amounts tab
Credit Checking- 20 4. Enter a sales order with item defined in CorpSierra pricelist, Order Type: Mixed
Credit Checking- 21 5. When moving to Line items tab automatic hold is applied
Credit Checking- 22 Credit Checking- 23 6. Press Book Order and a message pops up A hold prevents booking of this order

Credit Checking- 24 7. To Release the order from hold click on actions and release hold

Credit Checking- 25 -

Credit Checking- 26 Oracle Standard Reports1.5.1 Credit Exposure Report

The Credit Exposure report can be used to analyze your customers total credit exposure. The
report can be run ineither detail or summary mode and is dependent upon the value selected
for the
Report Type
input parameter: The Credit Exposure Summary Report output details the credit limit, credit
exposure and available credit for everycustomer, based upon the input parameters you
choose The Credit Exposure Detail Report shows the credit limit, credit exposure and
available credit for every customer,to include all Bill To sites, based upon the input
parameters you chooseThe Credit exposure report includes detailed information for: Overall
credit limits per customer and customer site Overall credit balances (exposure) per customer
and customer site Remaining available credit for either customers or customer sites. The
remaining balance is converted to the draftilyfunctional currency (set of books currency of the
current operating unit). Available credit is calculated by subtractingthe total exposure from
the overall credit limit. Remaining available balance currently not attached to a specific
customer credit limit as reflected by transactionsthat have not undergone the credit check
process Risks incurred by performing transactions in currencies that are not under credit
limit control. These amounts arereported in the functional currency and they appear as
unchecked
balances.The report output includes both Order Management and Oracle Receivables
balances, based on your Credit Check Rule definitions. Selecting a credit check rule for this
report enables you to choose combinations of credit balancetypes to include when
determining your customers overall credit exposure. Each credit check rule can enable
or disable the following credit balance types:

Exchange 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 exposure
eliminating Order Management credit balances, submitthe Oracle Receivables Customer
Credit Snapshot report which does not include Order Management credit balances,which
affect the current available credit exposure of your customers.
Submission
In the Order Management Reports window, select Credit Exposure Report in the Name field.
Parameters
When you request a Credit Exposure Report, Order Management provides you with the
following parameters. If youleave any parameters blank, this report output includes all records
that meet your other parameter criteria. In order toobtain a single credit exposure for a
Customer, enter the same value in the Customer Names (From/To) fields or theCustomer
Numbers (From/To) fields
Customer Profile Class (From/To)
These fields are optional.
Customer Names (From/To)
These fields are optional.
Customer Numbers (From/To)

These fields are optional.

Credit Check Rule
This field is required
Report Type
Credit Checking- 27
DetailThis field is required.
Report Output
Order Management displays all report input parameters and respective input values selected
on the first page of thereport output. If you choose to run the report in detail mode (selecting
Detail for the input parameter Report Type)additional credit usage details by Customer Bill To
site are included in the report output. Additional summaryinformation is also provided.
1.5.2 Orders On Credit Check Hold Report
The Orders On Credit Check Hold Report identifies all of the credit holds currently outstanding
for a customer withina date range, or identify why a particular order is on hold. Order
Management enables you to perform a credit check on customer orders and automatically
places orders on hold that violate your credit checking rules.All balances are calculated as
they are using the on-line credit check rule, including the factor for shipments andreceivables
for a certain number of days.
Submission
In the Order Management Reports window, select Orders On Credit Check Hold Report in the
Name field.
Parameters
When you request an Orders On Credit Check Hold Report, Order Management provides you
with the following parameters. If you leave any parameters blank, this report includes all
holds that meet your other parameter criteria. Inorder to obtain a single hold, enter the same
hold in the From/To fields.
Customer Name
Optionally, select the customer name that you want printed in this report.
Customer Number
Optionally, select the customer number that you want printed in this report.
Order Type
Optionally, select the order type that you want printed in this report.
Order Number
Optionally, select the order number that you want printed in this report.
Hold Applied Date (From/To)
Optionally, select a specific hold applied date or a range of hold applied date on which the
holds were applied.
Currency Code
Optionally, select the currency code that you want printed in this report.
Report Output
The Orders On Credit Check Hold Report prints order information for orders on credit check
hold and displays thefollowing 4 report sections sequentially for each order selected.
Customer Information Customer Credit Limit Information Customer Orders on Credit Hold
Information Summary InformationCustomer automatically sorts the report. Within Customer,
currency code, credit check rule name, and order number further sort the report. Order
Management displays all report input parameters and respective input values selected onthe
first page of the report output. Additional summary information is also provided.
1.5.3 Lines on Credit Check Hold ReportSubmission
In the Order Management Reports window, select the Lines on Credit Check Hold Report in the
Name field.
Parameters
When you request a Line on Credit Check Hold Report, Order Management provides you with
the following parameter. If you leave is blank, this report includes all order lines on hold that
meet your other parameter criteria.
Customer Name

Credit Checking- 28 Optionally, select credit order lines on hold for a specific Customer Name you want printed in
this report.
Customer Number
Optionally, select credit order lines on hold for a specific Customer Number you want printed
in this report.
Order Type
Optionally, select credit order lines on hold for a specific order type you want printed in this
report.
Line Type
Optionally, select credit order lines on hold for a specific order line type you want printed in
this report.
Order Number
Optionally, select credit order lines on hold for a specific order number you want printed in
this report.
Item Display
Optionally, determine how you wish to display items on hold for the report output.Select from:

Both: Order Management will print both the Internal Item name and the internal item
description (item asdefined within the Master Items window)

Description: Order Management will print only the Internal Item description

Flexfield: Order Management will print only the Internal Item name

Item and Description: Order Management will print both the ordered item name and the
associated ordereditem description

Ordered Description: Order Management will print only the ordered item description

Ordered Item: Order Management will print only the ordered itemThe default value is
Description.
Hold Applied Date (From/To)
Optionally, select a specific hold applied date or a range of hold-applied dates for credit order
lines on hold.
Currency Code
Optionally, select credit order lines on hold for a specific currency you want printedin this
report.
Report Output
The Lines On Credit Check Hold Report prints order information for orders on credit check hold
and displays thefollowing 3 report sections sequentially for each order selected. Customer
Order Information Order Line Credit Limit Information Summary InformationCustomer
automatically sorts the report. Within Customer, currency code, credit check rule name, and
order number further sort the report. Order Management displays all report input parameters
and respective input values selected onthe first page of the report output. Additional
summary information is also provided.
1.5.4 Outstanding Holds Report
The Outstanding Holds Report reviews order holds for the customer or customers you select.
This report displays theorder number, order date, ordered items, and order amount for each
order line on hold for each customer you select.Customer, order number, order line, and then
order line detail automatically sort it. Hold Comment are listed in thereport output, if
available. This report lists only orders on hold, not orders that have been released from hold.
Submission

In the Order Management Reports window, select Outstanding Holds Report in the Name field.
Parameters
When you request an Outstanding Holds Report, Order Management provides you with the
following parameters. If you leave any parameters blank, this report includes all outstanding
holds that meet your other parameter criteria. Inorder to obtain a single outstanding hold,
enter the same outstanding hold in the From/To fields.
Customer Name (From/To)
Optionally, select a specific customer name or range of customer names on orders you want
printed in this report.

Subject:
Relationship between Manaully Released Holds and Credit Checking
Scenario A:1. Credit Check rule is at time of Ordering and Picking/Purchase Release.2. Order is
on credit check failure hold.3. Manually release the credit check failure hold.When the order is
pick released, the order will pick. Why? Because the Picking/Purchase Release credit check
rule honors manuallyreleased credit check failure holds.Scenario B:1. Credit Check rule is at
time of Ordering and Picking/Purchase Release.2. The credit check rule for Picking/Purchase
Release has Override Manual Release checked and Days to Honor Manual Release = 10.3.
Order is on credit check failure hold.4. Manually release the credit check failure hold.5. Now
you pick release the order within 10 days of releasing the hold.Again, the order will be pick
released as it is within the 10 day window and Picking/Purchase Release honors manually
released holds.
Scenario C:1. Credit Check rule is at time of Ordering and Picking/Purchase Release.2. The
credit check rule for Picking/Purchase Release has Override Manual Release checked and Days
to Honor Manual Release = 10.3. Order is on credit check failure hold.4. Manually release the
credit check failure hold.5. Now you pick release the order after 10 days from when the hold is
released.If the credit exposure exceeds the credit limit for the customer/customer site, the
order will not pick release and go back on credit checkfailure hold. Days to Honor Manual
Release says only honor manually released holds for a specific number of days. As this order
waspicked after 10 days from when the credit check hold was released, the manually release
hold is ignored and the order is eligible for creditchecking. Thus, the order will show it went on
hold twice - at Ordering and Picking/Purchase Release. If credit exposure does not exceed the
credit limit for the customer/customer site, the order will be pick released.
Scenario B:1. Credit Check rule is at time of Ordering and Picking/Purchase Release.2. The
credit check rule for Picking/Purchase Release has Override Manual Release checked and Days
to Honor Manual Release = 10.3. Order is on credit check failure hold.4. Manually release the
credit check failure hold.5. Now you pick release the order within 10 days of releasing the
hold.Again, the order will be pick released as it is within the 10 day window and
Picking/Purchase Release honors manually released holds.