This document explains how Credit Check functions during customer order entry and at printout of picking lists.
Customer orders are checked to prevent orders from being delivered if the payer's credit is bad.
How the system is affected
A credit check is used to help avoiding future bad debt losses. The customer order type defines whether a credit check is activated, as well as when it is done. The check is made against the payer's credit limits.
Credit check is activated on 'CO Type. Open' (OIS010/F). Credit check can be activated at four different points in the customer order flow:
The credit check is made against the payer's credit limits specified on 'Customer. Open' (CRS610/J). If no payer is specified for the customer order, the credit check is made against the ordering customer's credit limits.
A payer is retrieved automatically to the customer order from the ordering customer on 'Customer. Open' (CRS610/J). A payer can also be changed or specified manually during customer order entry on 'Customer Order. Open' (OIS100/A).
Credit limits are specified in the customer's currency on 'Customer. Open' (CRS610/J). The customer's currency is used.
There are four types of credit limits that check different values:
Past due amount in accounts receivable
Amount outstanding in accounts receivable
Amount outstanding in accounts receivable, plus the value of current, non-invoiced customer orders
Number of days past due for the invoice in accounts receivable with the oldest due date.
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.
When a limit is exceeded
The point at which a credit check is made is defined on 'CO Type. Open' (OIS010/F) for each customer order type.
If a credit limit is exceeded, a warning is issued in 'Customer Order. Open' (OIS100) and 'Customer Order. Open Lines' (OIS101). The warning can be ignored, but the customer order is assigned a stop code and the picking list is prevented from being printed.
Customer order stop
When a limit is exceeded, the 'Customer order stop' field in the programs listed below 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. See the list above for a description of credit limit types.
The 'Customer order stop' field is displayed as information in these programs:
Release a stopped customer order
A stopped customer order must be released on 'Customer Order. Stop' (OIS120/E) before a picking list can be printed. An order is released by changing the 'Customer order stop' field on (OIS120/E).
The E-panel in (OIS120) displays a compilation of defined credit limits and current amounts for the comparison values for the customer order's payer. The same information is available in 'Customer Credit Limit. Open' (CRS315). Action F15 'Refresh invoice amount' is available both on (OIS120/E) and (CRS315/E). This action triggers a recalculation of the outstanding and overdue invoice amounts, something that otherwise is only done by the night job.
Block addition to manually released order
Select the check box 'Blk add man rel' in 'Settings - Customer Order Entry' (CRS720) to block additions to manually released customer orders, that is, orders with 'CO stop' set to 9='Man rel order' in (OIS120).
When selected, these are not allowed:
Other changes that increase the order value, such as increasing the price, reducing discounts, and adding charges are allowed.