This chapter describes how to use Oracle Credit Management.
This chapter covers the following topics:
Use Credit Management to process credit reviews for both your customers and prospects.
Depending on your setup, some types of credit reviews might require the assistance of a credit analyst, while other types might not require any user intervention at all. See: Overview of Oracle Credit Management Setup.
You can divide the credit review process into four stages:
During the credit review, the Credit Management Application workflow manages the process flow of credit data collection and analysis, as well as the implementation of credit decisions.
In addition, Credit Management provides various tools that you can use to determine if your credit policies are effective. See: Reviewing Credit Management Performance.
All credit reviews begin with either a manual or automatic request:
Credit or other personnel can manually initiate a credit review for a customer or prospect by submitting an online credit application, or by creating a case folder without a credit application. A case folder is an electronic representation of a hardcopy credit file.
See: Collecting Credit Data.
Certain business events can automatically initiate a credit review by calling the Create Credit Request API. This type of request creates a credit application and case folder without user intervention.
For example, if a sales order is put on credit hold, then the credit hold process in Oracle Order Management passes this information to the Create Credit Request API, which automatically initiates a credit review.
Other events, such as a quarterly review or a lease application submission, can also trigger a credit review.
If a change to the sales order amount occurs during credit review processing and the case folder is still open, then Oracle Credit Management updates the existing case folder with the new order amount and initiates the case folder data refresh, rather than creating a duplicate credit request. If the case folder is closed, then a new credit request is created.
Note: You can also use the Create Credit Request API to initiate a credit review from a non-Oracle system.
You can configure Credit Management to complete the review process without assistance from credit personnel. In such cases, a credit analyst is not assigned unless a failed validation step prevents the automated process from successfully completing.
For credit reviews whose workflow processing fails, Credit Management uses the Rules Engine to determine the appropriate credit analyst for assignment. See: Credit Analyst Assignment Rules.
If an analyst cannot be determined, then a notification is sent to the Credit Scheduler to assign a credit analyst to complete the credit review. See: Credit Management Application Workflow.
Related Topics
During a credit review, you collect credit data for your customers and prospects. The type of credit data that you collect for every credit review is determined by the credit checklist.
The credit checklist indicates which data points are required for different types of credit analyses and decisions, and can optionally indicate which scoring model will be used for the review. In this way, the checklist enforces your enterprise's credit policies. See: Defining Checklists.
Credit Management uses credit checklists in two places:
Credit application
Case folder
If the checklist identifies required data points that already exist within Oracle Applications or are calculable, such as available credit, aging, and so on, then Credit Management automatically inserts that information directly into the credit application and case folder.
If the checklist requires data points that must be manually supplied, such as bank and trade references, then a credit analyst must enter the required data into the credit application or case folder.
When you create a credit application, you first specify the credit review type, as well as the customer or prospect's credit classification if it is not defaulted from the customer's profile class. Credit Management identifies the credit checklist that corresponds to this combination, and uses the checklist to build the rest of the application.
This means that the data points on a credit application vary according to its associated credit checklist. See: Using Credit Applications to Collect Credit Data.
For example, a new customer wants to establish credit with your company. Based on the credit checklist that you defined for the combination of credit review type (New Credit) and credit classification (New), the credit application will most likely emphasize external data and trade references, because historical receivables data will not exist for this new customer.
When you submit a credit application, Credit Management compares the application with the associated checklist to confirm that you are not missing any required data points. See: Submitting a Credit Application.
Whenever credit or other personnel submit a credit application, Credit Management always creates a case folder. Credit Management also creates a case folder whenever the Create Credit Request API initiates a credit review.
You use the case folder as a repository for the credit data that you collect. See: Using Case Folders to Collect Credit Data.
Additionally, the case folder is an important tool that you use during the credit analysis and decisioning stages of a credit review. See: Analyzing Credit Data.
Credit Management associates a credit checklist with a case folder in one of two ways:
When Credit Management creates a case folder upon the submission of a credit application, the case folder inherits the credit application's credit checklist.
When a business event, such as a periodic review or a credit hold on an order, initiates a credit review, Credit Management creates a case folder without a credit application. To associate the appropriate credit checklist with the case folder, Credit Management derives the credit review type from the business event itself, and the credit classification from the customer profile or the Default Credit Classification system option.
The checklist that Credit Management associates with the case folder ensures that, for this combination of credit review type and credit classification, all pertinent information is available for the credit analysis.
Related Topics
The credit application is one of the primary tools that you use in Credit Management to collect credit data about your customer or prospect. After credit and other personnel complete and submit the credit application, Credit Management begins the credit review.
Note: You can also use the case folder to collect information. See: Using Case Folders to Collect Credit Data.
Use the Application tab to create or search for one of three types of credit applications:
New application
Saved application
In-process application
For all three application types, you must first execute a search in order to proceed. Credit Management provides you with robust search capabilities that minimize both the possibility of creating duplicates in your system, as well as the amount of manual data entry that is required for a new application.
Search criteria is based upon the Data Quality Management (DQM) setup. See: Setting Up Data Quality Management Search.
Note: Credit requests with the Appeal, Rejection Appeal, Re-Submission, or Withdrawal reason can only come from another E-Business Suite application, as indicated by the credit request source. You cannot, for example, withdraw credit requests in Credit Management. See: E-Business Suite Integration Overview.
Related Topics
Creating a New Credit Application
Searching for Saved Applications
Searching for In-Process Applications
Entering Data into a Credit Application
Submitting a Credit Application
To create a new credit application, you must first enter your search criteria and then select the credit applicant. This procedure capitalizes on the data that you already maintain by automatically populating the credit application with basic information about the applicant.
When you open a new application, Credit Management automatically prefills the application with certain basic information from the account record that you selected, such as account name, account number, address, requestor name, and so on.
Only those parties (both customers and prospects) who are defined with the customer type of Organization are included in the search results.
If you select a customer at the top organization level, then data for all accounts that are related to the organization will be consolidated for the credit analysis. Or, if you select a specific customer account from the search results, then the data for all sites that are associated with the account will be consolidated.
The required fields on the application vary according to the combination of the applicant's credit classification and credit review type. See: Collecting Credit Data. For more information about the general contents of a credit application, see: Entering Data into a Credit Application.
Click the View Accounts icon to view a customer's accounts. You can view an account only if the address is All Locations or if the address type includes a bill-to business purpose.
Click the Create Credit Application icon to create a new credit application for this prospect, customer, account, or site, depending on which search results are in view. Credit Management opens a new application and automatically updates the application with the relevant applicant data.
Click the View Existing Applications icon to view the open credit applications that exist for this prospect, customer, account, or site.
If your customer search returned no results or you wish to purchase Dun & Bradstreet information for an existing customer, then you can click Search D&B to purchase a Dun & Bradstreet Global Data Product report for this prospect or customer. If a new party is created, then you will receive a message indicating the new registry ID for the prospect.
When you return to the New Application Search page, type the new registry ID into the Search field. Simply click Go and the newly created customer appears in the search results. You can now create a credit application for this customer.
Note: With the Dun & Bradstreet for Oracle Applications feature, you can import D&B information and maintain that information directly in the application database, without installing additional software or performing additional data imports. This functionality enables easy access to already purchased D&B credit data during credit reviews.
Related Topics
Using Credit Applications to Collect Credit Data
Third Party Data Integration Overview, Oracle Trading Community Architecture User Guide
You can use the Application tab to search for a work-in-process credit application with an application status of Saved.
Any applications that you create automatically assign you as the requestor. When you first begin a search for a saved application, Credit Management automatically displays all applications where you are the requestor.
You can display all saved applications by clicking Go, or you can display a subset of saved applications by using the Advanced Search. You can update only those applications, however, that you initially created.
To continue working on a saved credit application, click the Update icon for the desired application.
Click the Update icon in any row to make changes to the related credit application.
Click the Delete icon in any row to delete the related credit application.
Related Topics
Using Credit Applications to Collect Credit Data
You can use the Application tab to view credit applications that have an application status of Submitted, In Process, or Processed. These statuses are defined as follows:
Submitted indicates that the credit application cannot be updated by the requestor. Only the assigned credit analyst can modify this application.
If the application has no assigned credit analyst, then the Credit Analyst field will be blank, which means that the Credit Scheduler has been notified for a credit analyst assignment.
In Process indicates that Credit Management is currently reviewing the credit application and performing the credit analysis. Modifications to the credit application are not permitted at this stage.
Processed indicates that the credit application was submitted and the credit analysis has been performed. Recommendations were made in the case folder and have been approved. Modifications are not permitted at this stage.
If you are a credit analyst, then all applications assigned to you are automatically displayed in the search results.
You can search for all credit applications with any of the above statuses simply by clicking Go. You can further refine your search by searching for a specific credit analyst or by using the Advanced Search options.
After you execute a search, optionally click the column headings for Application Number, Registry ID, Name, and Status to sort the search results by the selected column's data.
Click the Update icon in any row to make changes to the related credit application. Only credit analysts assigned to the application are permitted to make changes.
Related Topics
Using Credit Applications to Collect Credit Data
To create a new credit application, execute a search for the credit applicant on the Application tab. See: Creating a New Credit Application.
You can create a credit application for a party (customer or prospect) or for a customer account or site. The row at which you click the Create Credit Application icon determines whether the credit review will be conducted for the party, account, or site. Note that Credit Management prefills the application with some basic details about the selected credit applicant. Address information is automatically populated when you save or submit the credit application.
Note: If the applicant is a party, then Credit Management does not populate the account name and number on the applicant page, and the prefilled address refers to the party site, not to the address location.
The credit application's contents vary according to the credit classification of the applicant and the type of credit review that you are conducting. You specify these values on the first page of the credit application. If the applicant has a predefined credit classification assigned from the customer profile class or from a previous credit review, then the credit classification is prefilled on the application. Use the left-hand menu to add information, such as bank references and financial data, to the application.
Tip: If a newly defined credit classification or review type is not available, make sure that your administrator has bounced the apache server after adding those values. See: Defining Lookups.
The structure of the credit application is modular, so you can record credit data at different points in time. Simply click Save for Later to save each credit application page as you progress through the credit data collection process. To retrieve your saved credit applications, see: Searching for Saved Applications.
You can optionally attach a document, URL, or text to sections of the credit application, including bank references and trade references. You can access these attachments from the case folder during credit analysis. See: Analyzing Credit Data.
When you have entered all required and optional data, click Submit to submit the credit application. When you submit a credit application, Credit Management reviews the credit application for possible credit analyst assignment, and creates a case folder for the application. See: Submitting a Credit Application.
Tip: You must enter required data in the Create Credit Application: Applicant page, but you can submit the credit application without data in the required fields of other pages such as Create Credit Application: Financial Data.
In the General Information region, enter the currency requested. Or, optionally set the AR: Default Credit Management Currency profile option to automatically assign a default currency for each new credit application.
You can optionally enter the amount requested on the credit application.
Credit Management refers to the values that you enter here when establishing the initial credit limits for the prospect or when changing the credit limits for an existing customer.
In the Applicant Information region, the contact information is optional. You can select a contact from the existing lists of contacts for the customers. Any modifications to the following fields will update the TCA Registry:
Contact Name
Contact Telephone
Contact Fax
Contact E-mail
In the Business Background region:
The DUNS Number field, while optional, is important because Credit Management can use this number to request credit data from Dun & Bradstreet.
The DUNS number comes from TCA, and is not an updatable field on the credit application.
Use the Financial Data page to enter pertinent data from the applicant's income statement and balance sheet. Although you can attach financial statements to the case folder during credit analysis, entering values directly into Credit Management provides you with data that you can use for future comparisons.
You can also select previously entered financial data from closed case folders, and copy that data to the current credit application or case folder. Then, you can run comparisons to assess positive or adverse trends. This is helpful because credit reviews are more effective if you have a comprehensive view of financial data, spanning multiple years or periods.
On the Financial Data page of the credit application (or case folder), you can:
Copy financial statement data from closed case folders.
You can copy financial data from the organization or party level, from the account level, or from the account site level. Typically, however, financial data is stored at the party level.
Select and compare financial statements that are saved with the current credit review. This lets you view a side-by-side comparison of balance sheets and income statements.
Note: Select at least two objects to compare.
The capability to analyze the trends of your credit applicants' financial results provides a powerful analysis tool, which your credit department can leverage to increase the quality of their credit decisions, and diminish the risk of poor credit recommendations.
Optionally use the Funding Source page to enter information about the applicant's additional funding sources. For example, if the applicant is receiving venture capital funding, you might want to know certain data items, such as funding amount, capital stage, and burn rate. The Funding Source page includes information about:
Venture Funding Data
Collateral Data
Guarantors
Assessing the creditworthiness of customers can include structures by which the debt obligation is reduced through participation of guarantors. However, guarantors also carry credit risk. On this page, you can add a new guarantor, or select an existing guarantor, by leveraging Credit Management's integration with Oracle Trading Community Architecture.
When you add a guarantor to a credit application, Credit Management automatically creates a case folder for the guarantor. This means that you can assess the creditworthiness of the guarantor, in addition to the applicant.
Optionally use the Bank References page to capture initial bank account information from the applicant. The credit analyst assigned to this credit review typically verifies or supplements bank account information during the analysis stage of the credit review process.
On the Create Bank Reference page, you can attach a file, URL, or text message that is associated with the bank. This is often used to document authorizations from the customer allowing for the use of bank information, as well as the customer's bank statements.
Use the Trade References page to gather and store multiple trade references for the applicant. Trade assessments from other creditors can provide you with useful insight into the applicant's creditworthiness.
Related Topics
Using Credit Applications to Collect Credit Data
When the credit application contains all required or available credit data, the credit analyst or other personnel clicks Submit Application to submit the credit application for analysis.
When you submit a credit application, Credit Management compares the application's contents against the associated credit checklist to confirm that you are not missing any required data points. Even if data points are missing, however, noncredit personnel can still submit the application.
Since additional work is required to finalize the application, the application is routed to the assigned credit analyst for completion, or to the Credit Scheduler for analyst assignment. The credit application appears in the In-Process Applications search results and the assigned credit analyst can click the Update icon to complete the application and resubmit it for analysis.
The Credit Scheduler is a workflow role that Credit Management uses to assign credit analysts to credit reviews. See: Credit Management Application Workflow.
Once the application submission is confirmed, Credit Management creates a case folder for the credit applicant and begins a workflow process to determine whether to assign a credit analyst to this credit review:
Credit Management does not assign a credit analyst to a credit review if automation rules exist for the combination of credit classification and credit review type on the credit application. If automation rules exist, then Credit Management attempts to complete the review process without assistance from credit personnel.
Should a validation step fail, then Credit Management routes the credit review to the Credit Scheduler for assignment if a credit analyst is not assigned to the customer's credit profile.
Credit Management assigns a credit analyst to a credit review if:
A credit analyst submitted the credit application, or
A credit analyst is assigned to the customer's credit profile
Credit Management routes the credit review to the Credit Scheduler for assignment if the person who submitted the credit application is not defined as a credit analyst, and:
The customer's profile does not have an assigned credit analyst, or
The party under credit review is a prospect (a party with no customer accounts)
Related Topics
Using Credit Applications to Collect Credit Data
In addition to the credit application, the case folder is another tool that you use to collect credit data about your customer or prospect.
The case folder is an electronic representation of a hardcopy credit file. Credit analysts use the case folder as the central repository for collecting, viewing, and analyzing credit data. After Credit Management creates the case folder, you can begin the credit analysis.
After you submit a credit application, Credit Management creates an associated case folder. Or, you can manually create a case folder without submitting a credit application. In either case, you can continue to add data about the credit applicant directly into the case folder until you conclude the credit review.
Note: Aside from serving as a data collection tool, the case folder is also an important analysis tool. See: Analyzing Credit Data.
Credit Management also creates a case folder when a business event calls the Create Credit Request API to initiate a credit review. However, the manual addition of data to a case folder is typically not required because, in such cases, Credit Management attempts all data collection, analysis, and decisioning on its own. See: Credit Management Application Workflow.
When a business event initiates a credit review, both the Update Case Folder: Summary and Case Folder pages display the originating source application, as well as additional details. For example, if a sales order hold initiated a credit review, then Credit Management displays details such as the order number and order ID.
Note: Credit requests with the Appeal, Rejection Appeal, Re-Submission, or Withdrawal reason can only come from another E-Business Suite application, as indicated by the credit request source. You cannot, for example, withdraw credit requests in Credit Management. See: E-Business Suite Integration Overview.
The Credit Request Information region on these pages also allows you to navigate to other case folders in the same chain. A chain exists when:
A case folder is automatically created for the guarantor that is added to a credit application. The chain links the original applicant and the guarantor. See: Entering Data into a Credit Application.
There is at least one appeal or resubmission, from another E-Business Suite application, in response to an original credit request. See: E-Business Suite Integration Overview.
The case folder you navigate to depends on the credit request reason, and other conditions, as described in this table.
Field | Credit Request Reason | Case Folder |
---|---|---|
Original | All but Guarantor Assessment | The first case folder in the chain. |
Original | Guarantor Assessment | The case folder that the guarantor was requested for. |
Current | All but Guarantor Assessment | The last case folder in the chain that is not withdrawn, unless there is only one case folder and it is withdrawn. |
Current | Guarantor Assessment | None. |
Previous | All but Guarantor Assessment | The previous case folder in the chain that is not withdrawn. |
Previous | Guarantor Assessment or Withdrawal | None. |
Next | All but Guarantor Assessment | The next case folder in the chain that is not withdrawn. |
Next | Guarantor Assessment or Withdrawal | None |
Related Topics
Entering Data into a Case Folder
Manually Creating a New Case Folder
On the Analysis tab, locate the case folder that you want to update by using one of the three queries that Credit Management provides:
Customer: From the search results, you can view a summary of case folders that exist for a customer or prospect. You can also use the inline icons to view the customer or prospect's accounts and credit summary. The credit summary reflects credit data in real time.
Credit analysts can view and update specific case folder details, provided that the case folder status is either Created or Saved.
Noncredit personnel must use the credit summary to view pertinent credit data, such as billing, payment history, and aging details, because they cannot view or update the contents of a case folder.
Case Folder Number: From the search results, you can use the inline icons to view or update details for a specific case folder, provided that the case folder status is either Created or Saved. Use this query to view a case folder's application number, assigned credit analyst, and folder status.
This query is available only to credit personnel. Only the credit analyst assigned to the case folder can update it.
My Case Folder: This query is identical to the Case Folder query, except that it returns only case folders that are assigned to you. Use this query to quickly resume work on an in-process credit review, or to consider previous research that you performed. To update a case folder, the case folder status must be either Created or Saved.
This query is available only to credit personnel.
Search criteria is based on the Data Quality Management (DQM) setup. See: Setting Up Data Quality Management Search.
Related Topics
Using Case Folders to Collect Credit Data
After you locate the case folder that you want to update, click the Update Case Folder icon to view the Update Case Folder: Summary page.
If certain credit data was not captured in the credit application or from existing account information, then you can use the links in the left-hand menu to manually provide the required data. Although the links take you to pages that resemble the credit application, any information that you add at this stage is stored in the case folder itself.
The left-hand menu contains an additional link for Recommendations that does not exist on the credit application. Also, the case folder provides you with the ability to add analysis notes. You use these two pages during credit analysis. See: Analyzing Credit Data.
Related Topics
Using Case Folders to Collect Credit Data
You can manually create a case folder for a prospect or customer, even if you did not submit a credit application. However, the customer or prospect must already have an existing case folder. This is because Credit Management uses preexisting case folder data to create the new case folder.
To create a new case folder, first search for the credit applicant by executing a Customer query from the Analysis tab. The search results return a list of parties only.
From the search results, click the View Case Folders icon to see a list of case folders that exist for this prospect or customer. Then, click Add Case Folder to manually create a new case folder.
Tip: To copy a case folder from the account or site level, first click the View Accounts icon, then the View Case Folders icon.
After clicking Add Case Folder, you must then select the credit classification, if not supplied, as well as credit review type and credit currency. You can also optionally select a scoring model. Finally, click Apply.
Credit Management prefills the case folder with any available data, such as party information and data points from the credit checklist that matches the specified credit classification and credit review type. If you selected a scoring model for the case folder, then Credit Management displays the score elements, as well.
You can continue to add credit data to a case folder after you create it. Note that you must enter any required data points before Credit Management will make and implement credit recommendations.
Related Topics
Using Case Folders to Collect Credit Data
After initiating the review request and collecting data, the third stage of a credit review is the credit analysis. Credit Management provides you with Credit Analysis data pages that help you to make appropriate credit recommendations.
The Credit Analysis data pages comprise the universe of data points for the applicant. The Credit Analysis data pages that are available off the Analysis tab include:
Update Case Folder: Summary
Credit Analysis: Credit Summary
Credit Analysis: Billing and Payment Details
Credit Analysis: Aging Details
See: Viewing the Credit Summary.
Two audiences use these data pages:
Noncredit personnel are restricted from viewing the contents of the case folder because the folder might contain information that is pertinent only to credit personnel who are analyzing and approving credit decisions. Therefore, in order to provide a current credit snapshot of the applicant, noncredit personnel should use the Credit Summary, Billing and Payment Details, and Aging Details pages.
Access these pages by searching for a customer, then selecting the View All Data icon.
Credit personnel who want to view all point-in-time data for an active analysis.
Typically, a credit analyst performs a credit analysis based upon the data in the case folder, determined by the checklist associated with the customer credit classification and review type. If the credit analyst views the universe of data in addition to what is contained in the case folder, then he might notice something that could impact the outcome of the analysis. In such a case, the analyst could manually add one or more data items to the case folder.
To add data points from the database that are not specified in the checklist, click Add Data Points from the Checklist section of the Update Case Folder: Summary page. Access this page by searching for a customer, then selecting the View Case Folder > Update Case Folder icons.
For each category, only the data points not already selected in the case folder are displayed with their corresponding value.
Related Topics
Adding Analysis Notes to the Case Folder
Viewing Case Folder Attachments
The case folder is an electronic representation of a hardcopy credit file. Credit analysts use the case folder as the central repository for collecting, viewing, and analyzing credit data. After Credit Management creates the case folder, you can begin the credit analysis.
Select the Analysis tab to locate or create a case folder. See: Using Case Folders to Collect Credit Data and Retrieving a Case Folder.
You can also view the credit summary for the applicant from the Analysis tab. See: Viewing the Credit Summary.
Credit Management attempts to calculate a credit score and submit credit recommendations for approval and implementation without assistance from credit personnel. If a credit score cannot be calculated due to missing data, then the analyst must manually review the case folder's contents and make a recommendation. See: Making a Recommendation.
The case folder includes:
Credit data
The credit score, if one is required
An Analysis Notes section where you can document conditions of influence and justify credit recommendations to approvers
Any attached electronic files or scanned images
An up-to-the-minute status of the credit review
Note: The exposure amount is displayed as the requested amount. For example, if the sales order that corresponds to this credit request has an order amount of $4,000, and there is a previous balance of $4,700, then the requested amount is $8,700.
Related Topics
The credit score, which is a point-in-time score, is always tied to a case folder. The data points included in the credit score can include any combination of automatic, user-entered, or Dun & Bradstreet data. If all data points on the checklist are automatically supplied or have been supplied from Dun & Bradstreet, then Credit Management automatically calculates a credit score.
If credit personnel must manually supply data points used in the credit score, such as a bank account balance from the applicant's bank references, then on the Update Case Folder: Summary page, click Recalculate on the scoring model to recalculate the score after all data point values have been added.
Access the Update Case Folder: Summary page by searching for a customer, then selecting the View Case Folder > Update Case Folder icons.
A scoring model is optional when defining a checklist. If you do not assign a scoring model to a checklist, then the credit analyst must manually complete the credit analysis and generate a recommendation. See: Defining Checklists.
Even if a scoring model is assigned to the checklist, you can still generate a credit score by selecting a scoring model from the Update Case Folder: Summary page and clicking Go. Use this method to generate various "what-if" scenarios for the applicant.
Credit Management refreshes the case folder page to show the new data points in the scoring model and recalculates the credit score.
Note: If some required data point values are missing, then Credit Management cannot generate a score.
Related Topics
During a credit review, you can record notes in the Analysis Notes section of the case folder. The case folder displays a summary of analysis notes in chronological order.
Analysis notes assist both the credit analyst and credit reviewers to document and justify why certain recommendations were made, or to identify areas of note. These notes are also useful if a new credit analyst is assigned to an active credit review and wants to review the work that the previously assigned analyst completed.
You can select a topic for the note from a user-definable list and assign an importance level. You can choose whether to publicly display a note, or create a note that only you can view.
Related Topics
You can attach one or more supporting documents, such as a web page, fax, image, or scanned report, to a credit application or case folder. Credit Management displays any attachments previously created during the credit application process.
From the Update Case Folder: Summary page, you can view attachments from these case folder pages:
Add Collateral Data
Add Bank Reference
Add Trade Reference
Related Topics
If an active credit analysis has been in process for some time, the historical data collected from the system might become outdated. You can repopulate all automatically derived data point values in the case folder by clicking Refresh.
Oracle Credit Management will display the concurrent request number of the background process that is used to refresh the data. Upon completion of the concurrent request, you must refresh or requery the case folder to reflect the updated data.
Note: Only the case folder data, and not data in the Credit Summary Data pages, is refreshed. However, you can click Refresh Data in the Credit Summary Data pages to update the values displayed there.
Related Topics
To view the credit summary for a customer or prospect, execute a query on the Analysis tab by customer name, then click the View All Data icon. Or, when viewing the Update Case Folder: Summary page, click View All Data.
The credit summary displays the most pertinent credit data for the selected credit applicant. Some data points reflect real-time information, while other data points are a snapshot of a single point in time. Use the credit summary as a quick reference during the credit review.
The Credit Summary page consists of several regions, comprised of the most important data points from several areas. The regions are:
Account Information
Billing and Payment Summary
Credit Summary
Aging Summary
From the Credit Summary page, you can also use the links in the left-hand menu to view additional billing and payment details, as well as additional aging details. Both the Billing and Payment Details page and Aging Details page are view only.
Note: No data values are shown on the Credit Summary page until an initial case folder has been created for the applicant. After that, you can view and refresh Credit Summary data at any time.
Related Topics
At the conclusion of a credit review, either Oracle Credit Management or a credit analyst makes a recommendation in response to the original credit request:
If a credit review is using a scoring model with assigned automation rules, then Credit Management looks at the calculated credit score to automatically select the appropriate credit recommendations, all without the assistance of credit personnel.
Note: If recommendations are not inserted in the case folder, it could be that values were not provided for all required data points from the used checklist. In this case, you need to manually enter the recommendation.
If all scoring data point values were provided, a credit score is still calculated.
If a credit analyst is managing the credit review, then the analyst records recommendations in the case folder, based on the credit analysis and resulting credit score, and submits the case folder.
Tip: The credit analyst can select only those credit recommendations that are relevant to the type of credit application under review. For example, during a credit application, only trade credit recommendations will display for selection; during a lease application, only term credit recommendations will display.
Generally, a recommendation is specific to the type of review that was just concluded. For example, a credit review that an order hold originally initiated would most likely result in a recommendation to:
Increase the credit limit to accommodate the amount of the order and remove the order from hold.
or
Deny the request for an increase in the credit limit and leave the order on hold.
Other recommendations might also put the customer on credit hold so that no new orders could be processed. In such a case, Credit Management works with Oracle Receivables to place all pending orders on hold, as well.
Credit Management confirms that multiple recommendations are complementary. For example, you would not recommend to place the account on credit hold and increase the applicant's overall credit limit at the same time.
After the case folder is submitted, the Credit Management workflow determines whether the recommendations must be routed through an approval hierarchy. For example, if automation rules on the scoring model have the Skip Approval check box selected, then no approval is required. However, if no automation rules exist on the scoring model, or if the Skip Approval check box is not selected, then the Credit Management workflow calls the Approvals engine to route the recommendation through the approval hierarchy. See: Setting Up Credit Decision Approval Policies.
Each person in the approval hierarchy receives a notification that they must approve or reject the recommendations. Upon final approval, the credit analyst receives notification that the credit recommendations have been approved. See: Credit Management Application Workflow.
Upon approval, the Credit Management workflow evaluates the recommendations and performs one of two actions:
Implements the recommendation
For example, increase create limit by 10% and change the customer credit classification to Moderate Risk.
Creates a workflow business event that tells other E-Business Suite applications that the recommendation was approved. This method is generally used if the original credit review request came from another application, such as Oracle Lease Management. By subscribing to this business event, Lease Management can then act upon the recommendation.
For example, let's say that a term credit review is approved in Credit Management. Upon approval, a business event for the recommendation, Approve Term Credit, is raised. Lease Management subscribes to this business event and can act upon it by approving the lease application.
Does Credit Management support conditional approvals?
Yes. See: Approving a Credit Review with Conditions.
Let's say that an incomplete credit application causes a credit review to be routed to a credit analyst for manual processing. After the credit analyst fixes the issue, can the analyst re-submit the credit application or case folder for continued automation? Or, does the analyst need to manually complete the credit review, including the manual selection of the final credit recommendation?
In this case, after the analyst re-submits the credit application or case folder, Credit Management will evaluate whether automation rules exist on the scoring model in use. If automation rules exist, then the credit recommendations are automatically derived. In this way, Credit Management allows continued automation to improve your credit department's processing efficiency.
If the analyst already manually documented credit recommendations, then the manual recommendations supersede the automation rules.
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Implementing the Recommendation
If additional approval is unnecessary or the approval was already obtained, then the workflow calls the appropriate APIs to implement the recommendation.
Oracle Credit Management automatically implements the recommendation after all required parties have approved it. For example, if the recommendation indicates that the order should be removed from credit hold, then the workflow will call the Remove Credit Hold API and pass the necessary information, such as order ID, account ID, and so on, to initiate the process.
When a customer is released from hold, Oracle Credit Management works with Oracle Receivables to ensure that the customer's pending orders are released from hold, as well.
See: Credit Management Application Workflow.
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Use the Periodic Credit Review concurrent program to schedule time-oriented credit reviews that comply with your enterprise credit policies. Periodic credit reviews help to establish historical comparisons of a customer's creditworthiness.
For example, you might require credit reviews on an annual, biannual, or quarterly basis for all parties, accounts, or sites.
To be eligible for periodic credit reviews, customers must have an assigned periodic review cycle, either at the profile or customer level.
The Periodic Credit Review program uses the assigned review cycle, in conjunction with the attributes in the Credit Reviews window, to control which customers are selected for periodic credit reviews. You can manually update these attributes. Or, let Oracle Credit Management automatically determine customer eligibility.
Access the Periodic Credit Review concurrent program from the Run Credit Management Programs and Reports window, available from any Oracle Receivables responsibility.
The Periodic Credit Review program uses a customer's assigned review cycle and the attributes on the Credit Reviews window to calculate the next review date.
To access the Credit Reviews window, query a customer on the Oracle Receivables Customers workbench, navigate to the Profile: Transaction tabbed region, and select Credit Review Dates from the Tools menu. This window contains two attributes that help to determine which customers are selected for periodic credit reviews:
Last Review Date (view only)
Next Scheduled Review Date (updatable)
Tip: These attributes also help you to decide whether a review cycle reassignment for a customer is necessary, because you can easily view when a customer is next eligible for a periodic review.
Oracle Credit Management reviews the assigned review cycle and last review date to calculate the next review date.
For example, if the assigned review cycle is monthly, and the customer was last reviewed on August 24, then the next scheduled review would be September 24.
To manually control customer eligibility for periodic credit reviews, change the assigned review cycle or update the Next Scheduled Review Date field.
Changing the review cycle forces the program to adjust the next review date:
If a last review date is specified, then the program adds the number of days in the review cycle to determine the next review date.
If no last review date exists, then the program keeps the next review date as is, if one exists, or leaves it empty, if null.
When the Periodic Credit Review program is submitted, the program automatically selects those customers whose next review date is less than or equal to the system date.
Enter your selection criteria using the following parameters:
Review Cycle
Review Cycle As of Date
Optionally use this parameter with, or instead of, the Review Cycle parameter, as an additional filter for determining customer eligibility.
The program uses the review cycle and the attributes in the Credit Reviews window to determine the next review date:
A customer is eligible for selection when the Review Cycle As of Date is greater than or equal to the next review date, provided that other entered parameters are not in conflict.
The next review date can be entered, or automatically calculated using the review cycle and last review date.
If the program cannot calculate a next review date, then the customer is eligible for selection, provided that other entered parameters are not in conflict. This occurs during an initial periodic review.
Currency Code
Specify the currency that you want to run a periodic credit review for.
When you submit this program for a specific currency, the program first checks if a previous case folder with a Periodic source exists for the entered currency.
If such a case folder is found, then the program calculates eligibility by using the case folder's review date as the last review date. See: Customer Selection Example.
If no case folder is found, then the program uses the standard guidelines to determine eligibility. See: Determining Customer Eligibility.
Customer Level
Indicate which level of customer is selected for periodic review:
Accounts
All
Bill-to Sites
Parties
Note: No credit requests will be created if other parameters conflict with the value entered here. For example, if you select Parties but later specify an account number, then the Periodic Review Eligibility report will display no individual data.
Checklist
Party Name
Account Number
Credit Classification
Profile Class
Generate Report Only
This option only prints the Periodic Review Eligibility report, so that you can preview which customers will be selected for processing.
Process Reviews
This option only creates credit requests for eligible customers, and does not print the Periodic Review Eligibility report.
Report and Reviews
This option both prints the Periodic Review Eligibility report, and creates credit requests for eligible customers.
Consider this scenario for customer Vision Operations, which has a weekly review cycle.
First, run the Periodic Credit Review program for USD currency on April 12.
Vision Operations has no previous USD periodic reviews. Therefore, a last review date and next review date do not exist.
The program uses standard guidelines to calculate the next review date, which is April 19.
On the same day, run the Periodic Credit Review program for CAD currency.
Vision Operations has no previous CAD periodic reviews as well, but now, the next review date is April 19.
The program will select this customer for processing, but will maintain the next review date of April 19.
On April 20, run the Periodic Credit Review program for USD currency.
Vision Operations has a next review date of April 19.
The program will select this customer for processing, and will update the next review date to April 26.
On April 22, run the Periodic Credit Review program for CAD currency.
Vision Operations now has a next review date of April 26, which is greater than the system date. This customer fails the first test of eligibility.
Next, the program checks if a previous CAD case folder with a Periodic source exists. A case folder with a date of April 12 is found.
The program uses the review cycle (weekly) and previous date (April 12) to calculate the next review date, specifically for CAD currency. The newly calculated date is April 19, which is less than the submission date of April 22. The customer is selected for processing.
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