This chapter describes how other Oracle E-Business Suite applications integrate with Oracle Credit Management for their credit needs.
This chapter covers the following topics:
Other Oracle E-Business Suite applications integrate with Oracle Credit Management to incorporate the credit review process in their business flows. These applications are:
For a list of seeded recommendations, see: Setting Up Credit Recommendations. Or, follow these steps to define your own recommendations for use with Lease Management or Loans:
Define the recommendations that credit analysts will enter for credit reviews initiated from Lease Management or Loans. Credit analysts manually enter these recommendations in the case folder.
Use the AR_CMGT_TERM_RECOMMENDATIONS lookup code.
See: Defining Lookups.
Re-enter the recommendations defined in the previous step using a second lookup code, AR_CMGT_RECOMMENDATIONS. Credit analysts access these recommendations when defining automation rules.
Tip: (Lease Management only) Use the Tag field in the Receivables Lookups window to assign a URL or OA function to a term credit recommendation. Later, when a credit analyst picks a recommendation that has an assigned URL or OA function, the analyst is presented with a new page where data can be entered and stored in Lease Management. This is used when an analyst is making a conditional approval. See: Approving a Credit Review with Conditions.
This sequence of events describes the process flow of a credit request that is initiated from Oracle Order Management.
A new order in Order Management violates the customer's existing credit limit. For example, perhaps the customer's Overall Credit Limit (plus any tolerances) has been exceeded. Order Management puts the order on hold pending credit review.
A credit review request is sent to Oracle Credit Management via the Create Credit Request API.
The Create Credit Request API creates a credit application.
Using the Credit Management Application workflow, Credit Management attempts to submit the credit application and create the case folder for credit analysis without user intervention.
If, at any time, the workflow processing fails, Credit Management assigns a credit analyst to the credit review for manual processing.
Once a credit score has been calculated by the assigned scoring model, either Credit Management or a credit analyst assigns one or more recommendations to the case folder. The case folder is submitted.
If approval is required, then recommendations are sent to Oracle Approvals Management:
Credit Management sends the credit analyst ID to Approvals Management using the AME Get Next Approver API.
Approvals Management executes its own rules engine.
Approvals Management determines the next approver and returns the approver ID to Credit Management.
The Credit Management Application workflow sends a notification to the approver.
If the approver rejects, then Credit Management closes the case folder and the recommendation has status of Rejected.
If the approver approves, then Credit Management starts the approval process again.
Credit Management sends the previous approver ID to Approvals Management using the AME Get Next Approver API.
Approvals Management can return a next approver. Or, Approvals Management can return NULL, which means that either no rule exists or the previous approver was the final approver.
Once approved, Credit Management closes the case folder and assigns a status of Approved to the recommendations.
If approval is not required, then the recommendations are automatically implemented and the case folder is closed.
Upon approval, Credit Management raises a business event indicating if the recommendation was implemented or not.
Order Management subscribes to the business event and, depending on the final credit decision, can take the order off hold or not, increase the customer's credit limit, and so on.
Oracle Credit Management integrates with Oracle Lease Management to provide functionality around credit reviews that are initiated by lease application updates in Lease Management.
This sequence of events describes the process flow of a credit request that is initiated from Oracle Lease Management.
A new lease application is created in Lease Management.
A credit review request is sent to Oracle Credit Management via the Create Credit Request API.
The Create Credit Request API creates a credit application.
Using the Credit Management Application workflow, Credit Management attempts to submit the credit application and create the case folder for credit analysis without user intervention.
Data points from Lease Management are listed as Additional Data Points, and can use PL/SQL functions to automatically derive data point values.
If, at any time, the workflow processing fails, Credit Management assigns a credit analyst to the credit review for manual processing.
Once a credit score has been calculated by the assigned scoring model, either Credit Management or a credit analyst assigns one or more recommendations to the case folder.
Note: The credit request can be appealed if the Authorize Appeal recommendation is selected. This authorization expires based on the appeal days set in system options. See: Defining Credit Management System Options.
Recommendations can carry conditions that can request changes in certain terms of the lease application. For example, perhaps the credit analyst disagrees with the offered payment plan.
In this conditional approval flow:
The credit analyst tells the sales representative to fix the lease payment plan. The analyst assigns the case folder to the sales representative via the Credit Scheduler (provided that the sales representative has been assigned the credit analyst role).
The sales representative views the case folder and add the recommendation, Update Payment Plan, for example. This recommendation immediately opens a new user interface where the payment plan details can be updated.
Updates are stored in Lease Management.
If the sales representative does not have access to the case folder, then the credit analyst and sales representative discuss internally, then the credit analyst updates the payment plan details accordingly.
Once the conditions are fulfilled, the case folder is submitted for approval.
For a description of the approval flow, see: Process Flow of an Order Management Credit Review.
Upon approval, Credit Management raises a business event indicating if the recommendation was implemented or not.
Lease Management subscribes to the business event and implements the final recommendation for the lease application.
In Lease Management, the sales representative can also:
If allowed, appeal the credit decision or credit application rejection.
Resubmit the lease application due to pricing parameter changes on the quote.
The sales representative accordingly selects the Appeal, Rejection Appeal, or Re-Submission credit request reason.
The appeal or re-submission from Lease Management creates a new credit request, which undergoes the same general process in Credit Management as the original request.
A new lease application records the data of the appeal or re-submission. References to the application being appealed are passed into Credit Management.
A case folder associated with the appeal or re-submission is generated in Credit Management. This case folder is a duplicate of the closed case folder from the original credit request, plus additional data for the new request.
Note: There can be a number of review and appeal/resubmission cycles for a given original lease application. Only the latest version that is not withdrawn can be appealed or resubmitted, and each version can only be appealed or resubmitted once.
At any time in the entire credit review process, the sales representative can withdraw the lease application in Lease Management. The selected withdrawal reason is passed to Credit Management.
The credit review request is automatically frozen in Credit Management, regardless of the stage of the process and whether the credit review has completed or not. The withdrawn credit application or case folder is purged from the credit analyst’s work queue; the pending approvals are deleted from the approver’s queue, or the approvers are notified of the cancellation of the lease application.
Important: There is no return back from a withdrawal, and the lease application cannot be reopened and altered or resubmitted.
When working with credit reviews that were initiated by a lease application, some credit analysts might want to approve a credit review, provided that certain conditions of the lease application are fulfilled.
Oracle Lease Management already provides some seeded conditions, but you can add your own.
To add a condition to a recommendation, you must build the separate page first where condition fulfillment details can be recorded, then add the new page's OA function to the Oracle Lease Management lookup type, OKL_CR_MGMT_RECOMMENDATION, using the Tag field.
For example, perhaps a lease cannot be processed with the current payment plan. Instead, a new payment plan must be documented before the credit analyst can evaluate the risk associated with the proposed lease.
In this example, either the credit analyst or sales representative can enter a recommendation that carries a condition on the case folder, such as Update Payment Plan. The recommendation will open a separate page where new payment plan details can be added.
The credit analyst is not responsible for the verification of whether conditions are met. For example, lease application conditions are evaluated and confirmed by the sales representative during the lease booking and funding processes.
In Credit Management, the case folder is frozen until the condition is fulfilled outside the credit department.
My credit department is not familiar with leasing functionality. How can I give the leasing department access to credit reviews?
Assign the credit analyst role to the members of your leasing department. See: Defining Credit Analysts.
Oracle Credit Management integrates with Oracle Loans to provide functionality around credit reviews that are initiated by loan applications in Loans.
This sequence of events describes the process flow of a credit request that is initiated from Oracle Loans.
A new loan application is created in Loans.
A credit review request is sent to Oracle Credit Management via the Create Credit Request API.
The Create Credit Request API creates a credit application.
Using the Credit Management Application workflow, Credit Management attempts to submit the credit application and create the case folder for credit analysis without user intervention.
Note: The case folder number is the same as the loan number. Co-borrower details are totaled with the primary borrower's data points in a single, combined case folder.
Data points from Loans are listed as Additional Data Points, and can use PL/SQL functions to automatically derive data point values.
If, at any time, the workflow processing fails, Credit Management assigns a credit analyst to the credit review for manual processing.
Once a credit score has been calculated by the assigned scoring model, either Credit Management or a credit analyst assigns one or more recommendations to the case folder, and submits and closes the case folder.
In Oracle Loans, the loans agent reviews the case folder, especially the recommendations.
If the credit request is approved, the agent reviews the loan application and submits it to the loans manager for approval.
If the recommendation is to reject the loan application, the loans agent can continue to seek approval from the loans manager, or resubmit the loan application for credit review after making modifications to the loan application based on the recommendations.
If the loans agent decides to resubmit for credit review, the re-submission from Loans creates a new credit request, which undergoes the same general process in Credit Management as the original request.
A case folder associated with the re-submission is generated in Credit Management. This case folder is a duplicate of the closed case folder from the original credit request, plus additional data for the new request.
Note: There can be a number of review and resubmission cycles for a given original loan application. Only the latest version can be resubmitted, and each version can only be resubmitted once.