Credit Limits for Maintenance Customer Orders

This document explains how credit limits function for maintenance customer orders.

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.

A stopped maintenance customer order provides the opportunity to check the payer or customer and to decide if the customer should be allowed to place an order.

When to activate credit checks

Credit checks are activated on 'MCO Type. Open' (COS010/F). Credit checks can be activated at different times in the order flow.

Function of the credit check

The credit check is performed against the credit limits of the payer specified on 'Customer. Open' (CRS610/J). If no payer has been specified for the customer order, the credit check is performed against the credit limits of the ordering customer. If the payer is connected to a credit group in 'Customer Credit Group. Connect' (CRS316) , the credit check is performed against the credit limits defined for the credit group in (CRS610/J).

A payer is retrieved automatically to the customer order from the ordering customer on (CRS610/J). A payer can also be edited or specified manually during customer order entry on (COS100/E).

Credit limits are specified in the currency of the customer on (CRS610/J).

There are five types of credit limits that check different values:

  1. Past due amount in accounts receivable.
  2. Amount outstanding in accounts receivable.
  3. Amount outstanding in accounts receivable, plus the value of current, non-invoiced customer orders.
  4. Number of days past due for the invoice in accounts receivable with the oldest due date.
  5. Credit set for specific MCO lines.

Credit limits can be left without values by specifying '0.00' as the amount or '0' as the number of days. In this case, the credit limit is not checked.

Credit without risk

If a customer has an order for which financing is already secured, and the job should not be included in any credit calculations, a separate MCO type can be used. The MCO type should have 'Upd OV wo risk' selected in (COS010/G).

When a limit is exceeded

The point at which a credit check is performed is defined on (COS010/F) for each customer order type.

If a credit limit is exceeded, a warning is displayed in (COS100) and (COS101). The warning can be ignored, but the customer order is assigned a stop code. If 'Credit check at picking release' is selected for the dispatch policy in 'Dispatch Policy. Open' (MWS010), the picking list is prevented from being printed.

Maintenance customer order stop

When a limit is exceeded, the 'CO stop' field indicates which credit limits have been exceeded. The number 1, 2, 3, or 4 is displayed to indicate which type of credit limit is set for the customer.

MCO stop and credit limit warnings are displayed in 'Maint CO. Stop' (COS120) and (MOS170).

A warning message is displayed on the work request, indicating that a credit limit has been exceeded and that a stop code exists in (COS120). The reason can be viewed in (COS120).

Blocked picking lists

When credit limits are defined on (CRS610/J) and 'Credit check at picking release' is selected in (MWS010) for the dispatch policy, material issue is blocked on the work order. The picking list status is set to '03' in 'Delivery. Open Toolbox' (MWS410). The job can be manually released in (COS120).

Release a stopped MCO

A stopped MCO must be released in (COS120) before a picking list can be printed. An order is released by editing the 'CO stop' field on (COS120/E).

The E panel in (COS120) displays a compilation of defined credit limits and current amounts for the comparison values for the payer of the customer order. The same information is available in 'Customer Credit Limit. Open' (CRS315). Function key F15='Refresh invoice amount' is available both on (COS120/E) and (CRS315/E). This triggers a recalculation of the outstanding and overdue invoice amounts, something that otherwise is only done by an automatic nightly job.

If the payer is connected to a credit group in (CRS316), the credit limits and current amounts for the comparison values that are displayed on (COS120/E) are retrieved from the credit group, not from the payer. If action F15 ‘Refresh invoice amount’ is used on (COS120/E) for a payer that is connected to a credit group, the comparison values are recalculated both for the payer, and for the credit group.

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