Credit Limit at Grouped Customer Level

This document describes credit limit handling at a grouped customer level, defined as ‘Credit groups’ in 'Customer Credit Group. Connect' (CRS316). This enables you to set credit limits, and manage credit checking control, at a higher level than payer.

Credit checking control is performed for customer orders in 'Customer Order. Stop' (OIS120), and for maintenance orders in 'Maint CO. Stop' (COS120). During credit checking control, the outstanding balances in table CCUCRL (also displayed in 'Customer Credit Limit. Open' (CRS315)) are compared to the credit limits in table OCUSMA (displayed in 'Customer. Open' (CRS610)).

Credit checking control for customer orders, and maintenance orders, is made against the credit limits defined for the payer on (CRS610/J). It is however possible to do credit checking control on a higher level, if the payer is connected to a credit group in (CRS316).

Payers that are connected to a credit group, have a value in field ‘Credit group’ (PYGR) on (CRS610/J). For payers that are connected to a credit group, the credit limits are defined for the credit group on (CRS610/J).

Limitations

Outcome

Before you start

To enable the display of the field ‘Credit group’ (PYGR) on (CRS610/J), each user must carry out the following steps (these settings are saved per user):

  1. Open (CRS610) and display any customer by using option 5=’Display’.
  2. Select Enter until you reach (CRS610/J).
  3. Select F13=’Field Select’ on (CRS610/J) to open 'Customer. Select Fields' (CRS609/JP).
  4. On (CRS609/JP) select value 1-‘Displayed’ for field ‘Credit group’, or press F13=’Open All’ to display all fields on (CRS610/J).

To enable the display of additional sorting orders and columns in (CRS315), carry out the following steps:

  1. Open 'List and Printer programs. Configure' (CMS005).
  2. Enter ‘CRS315’ in the field ‘Used prog’ to position on ‘CRS315’ in the list of programs.
  3. Use related option 25=’Reset to standard’ for program (CRS315).
  4. Confirm the selected option by selecting OK on the confirmation message.
Note: This resets all personal settings to standard, meaning that all personalizations, additional fields on existing views, additional views, or changes to sorting orders, are removed for (CRS315).

Follow these steps to add a credit group

  1. Define the credit group as a new customer number in (CRS610).

    Customer type should be set to 0-‘Normal’, or 2-‘Payer’ on (CRS610/E).

    The credit limits for the credit group are defined on (CRS610/J).

  2. Define the credit group in (CRS316).

    Enter the customer number of the credit group in field ‘Credit Group’ and use option 1=‘Create’.

    Confirm the creation on (CRS316/E). The field ‘Credit group’ (PYGR) is automatically updated for the credit group on (CRS610/J).

  3. Connect your selected payers to the credit group in (CRS316). Only payers defined to use the same currency as the credit group can be connected to the credit group in (CRS316).

    Use option 1=‘Create’ for each combination of payer and credit group in (CRS316), and confirm each connection on (CRS316/E). The field ‘Credit group’ (PYGR) is automatically updated for each connected customer number on (CRS610/J).

    Use option 10=’Drill Down’ to display a list of all payers that are connected to the credit group in (CRS316).

  4. Use related option 11=’Credit Limit’ in (CRS316) for the customer number defined for the credit group to open (CRS315).

    In (CRS315) use option 2=‘Change’ for the customer number defined for the credit group.

    On (CRS315/E) use F15=’Rfre inv amt’ to calculate the outstanding balances for the credit group. If this is not done manually in (CRS315), the outstanding balances are calculated automatically during the next night run.

  5. Change to sorting order 2 in (CRS315) to display the credit limits and outstanding balances for all payers connected to the credit group.

    Enter the customer number of the credit group in field ‘Credit Group’ to only list the payers that are connected to this credit group.

    Use option 5=’Display’ for the customer number defined for the credit group, to display the credit limits, and the outstanding balances for the entire credit group on (CRS315/E).

    Use option 5=’Display’ for any payer connected to the credit group, to display the individual credit limits, and outstanding balances for each payer on (CRS315/E). If needed, use F16='Switch Payer/Credit group' to toggle between displaying the credit limits and outstanding balances for the payer and for the credit group.

  6. Exit (CRS315) to go back to (CRS316). In (CRS316), use option 5=’Display’ to display the credit limits and outstanding balances for the credit group on (CRS316/E). On (CRS316/E), three columns are displayed:

    In the first column, the outstanding balances for the entire credit group are compared to the credit limits of the credit group.

    In the second column, the outstanding balances for the selected payer are displayed, to illustrate how much this payer contributes to the total outstanding balances for the credit group.

    In the third column, the outstanding balances for all other payers in the credit group are displayed.

Follow these steps to delete a credit group, or delete the connection between a payer and a credit group

  1. Open (CRS316) and delete the connection for one payer from the credit group. The value in field ‘Credit group’ (PYGR) is automatically deleted for the customer number on (CRS610/J).
  2. If needed, when there are no connected payers left for the credit group, the credit group can be deleted from (CRS316). The value in field ‘Credit group’ (PYGR) is automatically deleted for the credit group on (CRS610/J).
  3. Open (CRS315) to recalculate the outstanding balances for the credit group. In (CRS315) use option 2=‘Change’ for the customer number defined for the credit group. On (CRS315/E), use F15=’Rfre inv amt’ to start the update.
  4. If needed, the customer number used for the credit group can now be deleted from (CRS610), unless invoices have been issued for this customer number.

Available API transactions for (CRS316MI)

Solution Overview

A customer can be connected to a payer, by selecting a payer on (CRS610/J).

If a customer is connected to a payer, customer orders, and invoices in accounts receivable, are updated with different values for customer number (field CUNO) and payer number (field PYNO).

If a customer is not connected to a payer, it is assumed that they pay their own invoices, and then both fields (CUNO and PYNO) store the customer number.

Payers can be now connected to a credit group in (CRS316). Payers that are connected to a credit group, have a value in field ‘Credit group’ (PYGR) on (CRS610/J).

The use of a credit group does not affect accounts receivable, or customer orders, for the payers that are connected to the credit group.

Credit limits are defined for the payer on (CRS610/J). However, if the payer is connected to a credit group, the credit limits must be defined for the credit group on (CRS610/J) instead, as the credit checking control is then made against the credit limits for the credit group. If credit limits have been defined for the payers that are connected to the credit group, the credit limits for the individual payers are not considered during credit checking control.

The credit limits are defined in the currency that has been selected for the payer, or for the credit group, on (CRS610/J). The currency of the payers that are connected to a credit group must be the same as the currency for the credit group.

In comparison to the credit limits defined on (CRS610/J), and stored in table OCUSMA, for the payer, or for the credit group, current outstanding balances (in the currency of the payer, or the credit group) are stored in table CCUCRL.

The following table shows an example:

Credit Limit Description Field in OCUSMA Field in CCUCRL
1 Amount for past due invoices CRLM ODIN
2 Amount for outstanding invoices CRL2 OINA
3 Amount for outstanding invoices and outstanding orders CRL3 OVNI
4 Number of days past due for the invoice with the oldest due date ODUD NOOD

The outstanding balances in table CCUCRL can be displayed in the following functions:

The outstanding balances in table CCUCRL are updated through 'Fnc: Update customer with invoice amount from ledger' (CRS930) as follows:

If a payer is connected to a credit group, the outstanding balances in table CCUCRL are stored both for the individual payer and for the credit group.

The outstanding balances for the payers that are connected to the credit group are then accumulated to outstanding balances for the credit group.

If the outstanding balances are refreshed with F15 in (CRS315), (OIS120), or (COS120) for a payer that is connected to a credit group, the outstanding balances are updated in the table CCURCL for both the individual payer and the credit group.

Example

The following table shows the corresponding outstanding balances for invoices and orders are listed for the connected customers and payers

Customer Payer Credit Limit 3 Outstanding balance for invoices and orders With a new order for 400 USD With a new order for 4,000 USD
A ABC   100 500 4,100
B ABC   200 200 200
C ABC   300 300 300
  Total for ABC   600 1,000 4,600
           
D DEF   1,000 1,000 1,000
E DEF   2,000 2,000 2,000
F DEF   3,000 3,000 3,000
  Total for DEF   6,000 6,000 6,000
           
  Total for ALFABETA 10,000 6,600 7,000 10,600

The outstanding balances for payers ABC and DEF, 600 USD and 6,000 USD, respectively, are stored for each payer individually in table CCUCRL.

And as the payers ABC and DEF are both connected to the credit group ‘ALFABETA’, their accumulated outstanding balance, 6,600 USD, is also stored for the credit group in table CCUCRL.

If a new customer order is entered for one of the customers connected to the credit group, for example customer A, with an order value of 400 USD, this order would be accepted, as the total outstanding balance for invoices and orders for the credit group (6,600 + 400 USD) would still be within the value for credit limit 3 (10,000 USD) for the credit group ‘ALFABETA’.

However, if the new order value is 4,000 USD for customer A, then this order would be stopped as the total outstanding balance (6,600 + 4,000 USD) would now exceed the credit limit 3 (10,000 USD) for the credit group ‘ALFABETA’.

Related topics