Settings for Credit Limits for Maintenance Customer Orders

This document outlines the settings for credit limits on maintenance customer orders. When set, a credit check is performed against the payer of a maintenance customer order to prevent orders from being delivered if the payer does not have good credit.

How the system is affected

Customer settings

Credit limits are defined for each customer or payer on (CRS610/J). Credit limits may also be defined for a credit group, to which the customer, or payer, is connected in 'Customer Credit Group. Connect' (CRS316).

See Credit Limit at Grouped Customer Level

The fields for credit limits are used to specify the highest credit limit permitted for past due invoices, outstanding invoices, outstanding invoices and outstanding orders combined, and the maximum number of days overdue the oldest invoice can be. These limits are specified in the fields for credit limit 1, 2, 3 and 4.

If this limit is exceeded, maintenance customer orders (MCO) can be created, but credit limit warnings are issued if credit checks are selected for the MCO type in 'MCO Type. Open' (COS010). Material issue is blocked on material lines connected to MCOs if 'Credit check at picking release' is selected for the dispatch policy in 'Dispatch Policy. Open' (MWS010).

Valid values for credit limit 4 are 1-999. If 0 is specified or if the field is left blank, credit limit 4 is not used.

Credit limit 4 is verified when credit limits 1-3 are not exceeded. Credit limit 4 has a lower priority than credit limits 1-3.

MCO order type settings

This table shows the MCO order type settings:

Program ID/Panel Field Description
(COS010/G) New entry order Whether a credit check should be performed during MCO entry. If the credit limit of the customer or payer is exceeded, a record is created in 'Maint CO. Stop' (COS120). A warning message is also displayed.
(COS010/G) Ck limit WR Whether a credit check should be performed when work requests are released in 'Work Request. Open' (MOS170). If the credit limit of the customer or payer is exceeded, a record is created in (COS120).
(COS010/G) Pct credit ck The credit limit percentage which triggers a warning message on a specific MCO line. A warning message type 727 is issued and can be viewed in 'Application Message. Open' (CRS420).
Note: This check is intended to act as a warning on individual order lines. It can be used, for example, for large jobs where you want a warning when a percentage of the credit for that specific job has been reached. The credit for individual jobs is set on the individual MCO line.
(COS010/G) New entry lines Whether a credit check should be performed when you specify new or change existing MCO lines. If the credit limit of the customer or payer is exceeded, a record is created in (COS120).
(COS010/G) Upd OV wo risk Whether the order value on orders using this order type should update the order value without risk. The order value without risk is deducted from the outstanding invoiced amount when credit limit 3 is checked by the system.

An order type with this option selected can be used for customers and MCOs that have secured financing for a specific job.

(COS010/G) Ck limit cont Whether credit limit checks should be run continuously. If set, a credit verification is performed whenever a transaction is reported on an MCO.

If the credit limit is exceeded, a message is sent to the MCO responsible and the credit department reference listed on (CRS610/K).

Dispatch policy settings

You set whether a credit check should be performed when picking lists are created using 'Credit check at picking release' field on (MWS010/E). If the credit limit of the customer or payer is exceeded, a record is created in (COS120), and the pick list status is set to 03 in 'Delivery. Open Toolbox' (MWS410).

Blocked picking lists can be manually released in (COS120).

Other settings

Optionally, a time fence for credit limit 3 can be specified on 'Settings - General Ledger' (CRS750/F). The time fence is the number of days counting backwards from the requested delivery dates of customer orders when these customer orders will update the customer's consumed credit limit 3.

Note: The functionality for time fence for credit limit 3 cannot be used in combination with credit groups defined in (CRS316).
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