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

The functionality implemented for credit groups in programs for customer orders and finance is only available for customers/payers that are connected to a credit group in (CRS316).
The customer number defined for the credit group in (CRS610) must also be connected to the credit group in (CRS316).
A customer/payer can only be connected to one credit group in (CRS316).
The currency of the customers/payers that are connected to a credit group must be the same as the currency for the credit group.
The functionality for credit groups cannot be used in combination with time fence functionality for credit limit 3 enabled on 'Settings – General Ledger' (CRS750/F). Therefore, a credit group cannot be defined in (CRS316) for a company for which the time fence functionality has been enabled for credit limit 3 in any division. Similarly, the time fence functionality for credit limit 3 cannot be enabled on (CRS750/F), if credit groups have been defined in (CRS316) for the company.
Customer stop set for the credit group on (CRS610/J) does not block the entry of customer orders for the payers connected to the credit group.
Change of payer in 'Acc Receivable. Display' (ARS200) does not update table CCUCRL automatically. The updates are manually initiated through F15=‘Rfre inv amt’ on 'Customer Credit Limit. Open' (CRS315/E) for both the old payer and the new payer.

Outcome

When a payer is connected to a credit group in (CRS316), tables OCUSMA (displayed in (CRS610)) and CCUCRL (displayed in (CRS315)) are updated with a value in field ‘Credit group’ (PYGR) for that payer. PYGR is updated with the customer number of the credit group. When a payer is disconnected from a credit group in (CRS316), the field ‘Credit group’ (PYGR) is cleared for that payer in tables OCUSMA and CCUCRL.
Table CCUCRL holds information about outstanding balances for all payers, and is updated at order entry, invoicing, and entry of payments. For a payer that is connected to a credit group, table CCUCRL is also updated for the credit group, not only for the payer.
During credit checking control, the outstanding balances in table CCUCRL are compared to the credit limits in table OCUSMA. For a payer that is connected to a credit group, the credit checking control is made against the credit limits defined for the credit group on (CRS610/J). For a payer that is not connected to any credit group, the credit checking control is made against the credit limits defined for the payer on (CRS610/J).
In (CRS315), the individual credit limits and outstanding balances for all payers connected to a specific credit group can be displayed, using sorting order 2. The credit limits and outstanding balances for the entire credit group are also displayed in (CRS315).
In (CRS316), the credit limits and outstanding balances for the credit group can be displayed on (CRS316/E). The information is displayed in three columns:

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.
For a payer that is connected to a credit group, the field ‘Credit group’ (PYGR) is displayed with a value on the following panels:

'Acc Receivable. Display' (ARS200/B)

'AR Pmt Forecast/Age Distribut. Display' (ARS260/E)

'Maint CO. Stop' (COS120/E)

'Customer Credit Limit. Open' (CRS315/E)

'Customer. Open' (CRS610/J)

'Customer Order. Stop' (OIS120/E)

'Credit Monitoring. Display per Payer' (RMS421/B)
For a payer that is connected to a credit group, credit limits, and outstanding balances, are retrieved from the credit group when displayed on the following panels:

(OIS120/E)

(COS120/E)

(RMS421/B)
For a payer that is connected to a credit group, credit limits are retrieved from the credit group when displayed on the following panels:

(ARS200/B)

(ARS260/E)

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):

Open (CRS610) and display any customer by using option 5=’Display’.
Select Enter until you reach (CRS610/J).
Select F13=’Field Select’ on (CRS610/J) to open 'Customer. Select Fields' (CRS609/JP).
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:

Open 'List and Printer programs. Configure' (CMS005).
Enter ‘CRS315’ in the field ‘Used prog’ to position on ‘CRS315’ in the list of programs.
Use related option 25=’Reset to standard’ for program (CRS315).
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

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).
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).
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).
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.
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.
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

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).
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).
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.
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)

AddPayerToCrGrp – Adds a payer to a credit group
DltPayerFrCrGrp – Deletes a payer from a credit group
LstPayersInCrGr – Lists all payers within a credit group

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:

'Customer Credit Limit. Open' (CRS315)
'Customer Credit Group. Connect' (CRS316/E)
'Customer Order. Stop' (OIS120/E)
'Maint CO. Stop' (COS120/E)

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

Continuously updated for customer invoices and payments that are processed through (GLS040).
Updated for one single payer using F15 in (CRS315), (OIS120), or (COS120).
Updated for one single payer when the due date is changed for a customer invoice, or when a customer invoice is blocked from reminders, in ‘Customer Invoice. Change’ (ARS201).

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

Customers A, B, and C are connected to payer ABC that has been defined to use currency USD.
Customers D, E, and F are connected to payer DEF that has been defined to use currency USD.
Payers ABC and DEF are both connected to the same credit group ‘ALFABETA’ that has been defined to use currency USD, and for which credit limit 3 has been set to 10,000 USD.

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’.