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Oracle Credit Management User Guide
Release 12.1
Part Number E13502-04
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Implementing Oracle Credit Management

Complete the tasks in this chapter after installation, but before setting up credit policies.

This chapter covers the following topics:

Defining Credit Analysts

Credit analysts assist in the resolution of credit-related issues and evaluate the creditworthiness of your customers and prospects. Credit analysts can view credit applications and case folders in Oracle Credit Management, and can submit recommendations after concluding a credit analysis.

You must define employees as credit analysts and credit managers before they have access to view and update data in Credit Management.

Note: In addition to defining true credit personnel as credit analysts and credit managers, you can also assign the role of credit analyst to other interested parties who require view-only access to credit applications. For example, a sales representative who initiates a credit review request by submitting a lease application might want to view the credit application details.

To define credit analysts:

  1. First define your credit analysts as employees in Oracle Human Resources Management System (HRMS).

    See: People Management Overview, Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide.

  2. Next, import employees from HRMS into Resource Manager and assign roles.

    Two seeded roles exist for Credit Management:

    Note: A credit manager has access to setup functionality. You can assign the credit manager role to a credit analyst.

    See: Overview of Setting Up Resource Manager, Oracle Trading Community Architecture Administration Guide and Overview of the Oracle Resource Manager, Oracle Trading Community Architecture User Guide.

  3. Finally, when defining your analysts as E-Business Suite users in the Users window, link each analyst to his or her HRMS record by selecting:

    See: Users Window, Oracle Applications System Administrator's Guide - Security.

After you define a credit analyst, you can modify any of the analyst's information, except the employee and user names.

Tip: Non-employees can also initiate (from an application outside Credit Management) the creation of credit applications. Non-employees are users who are not in Oracle HRMS and who are not assigned a credit analyst role in Resource Manager. For example, a non-employee might be a vendor or a contractor. To enable this integration, the passing application must send the requestor_type of FND_USER and the requestor_id of FND_USER_ID to Credit Management when calling the Credit Request API.

See the Credit Management API User Notes appendix in the Oracle Credit Management User Guide.

Maintaining Customer Data

Integrating with Dun & Bradstreet

Oracle Credit Management integrates with Dun & Bradstreet, which maintains a growing global database of more than 60 million businesses worldwide. With this integration, you can retrieve D&B credit information for a customer or prospect, thereby extending the accessibility of critical credit information beyond your own historical data.

Information that you purchase from D&B can be added to credit checklists as data points. During a credit review, Credit Management automatically includes those D&B data points in the case folder. See: Adding Dun & Bradstreet Data Points to a Checklist.

D&B information is available in the form of Global Access Data Products. If the information that you have in your system is outdated or does not exist, then you can purchase the information online from D&B.

Before you can purchase products from D&B, you must first enable the integration between the E-Business Suite and D&B. See: Setting Up Third Party Data Integration, Oracle Trading Community Architecture Administration Guide.

To allow users to purchase D&B data, set the HZ: Allow Access to D&B Online Purchase profile option to Yes.

Setting Up Data Quality Management Search

Oracle Credit Management employs the Data Quality Management (DQM) match rules to identify how search results should be displayed in the application's search screens. See: Data Quality Management Overview, Oracle Trading Community Architecture Administration Guide.

To implement DQM in Credit Management:

  1. With these profile options, specify the seeded or user-defined match rules for determining the search criteria and results. The match rules must have the Search purpose.

  2. Set the HZ: Enable DQM Party Search Determine profile option to Yes. DQM search is enabled only for searches that has an assigned match rule, based on the above profile options.

  3. Run the DQM Staging program from a Trading Community Manager responsibility.

    The DQM Staging program uses the match rules that you selected to create the indexes used in Oracle Credit Management search screens.

    See: DQM Staging Program, Oracle Trading Community Architecture Administration Guide.

Populating Transaction Data

To enable faster performance and greater processing efficiency, Oracle Credit Management populates two summary tables with Oracle Receivables data, such as the amount of open invoices and the percentage of invoices paid late.

Later, during credit reviews, Credit Management examines the data in these prepopulated tables, thus saving processing time and delivering faster results.

The tables are:

Note: Another application in the E-Business Suite, Oracle Advanced Collections, also uses these summary tables.

Two methods exist to populate the summary tables with data:

  1. Initial load (manual implementation step):

    During implementation, set the AR: Allow summary table refresh profile option to Yes. Then, run the Credit Management Refresh AR Transactions Summary Tables concurrent program from the Submit Requests window.

    This program calculates and loads summarized data from Oracle Receivables for all customers.

    Note: Once the concurrent program successfully completes, the profile option is automatically set back to No. If you ever want to reset the summary tables, then you must first set the profile option back to Yes. See: Profile Options and Profile Option Categories Overview.

  2. Continuous updates (automatic process):

    The initial data load is only a snapshot of customer data at a point in time. To ensure that credit reviews access the most current data, all subsequent transactions for your customers must be captured in the summary tables. This data capture is automatically enabled through a series of workflow business events.

    What is a business event? A business event is an occurrence in an internet or intranet application or program that might be significant to other objects in a system or to external agents. See: Events, Oracle Workflow Developer's Guide.

    As business events occur in Oracle Receivables, those events are enqueued in the seeded WF_DEFERRED queue, which is the standard queue for deferred subscription processing in the database. As events are enqueued, a seeded PL/SQL agent listener service component named Workflow Deferred Agent Listener runs on a scheduled basis and executes the event subscriptions (already seeded by Credit Management) by updating the summary tables.

    See: Credit Management Application Workflow.

    For instance, a receipt application is an example of an Oracle Receivables business event. Credit Management considers this business event significant because receipt applications impact customer data. Accordingly, Credit Management provides a default subscription to this event, so that when receipt applications are recorded in the system, the Workflow Deferred Agent Listener automatically updates the summary tables during its next scheduled run.

    The business events that can be triggered to populate the summary tables are:

Frequently Asked Questions

The summary tables are not getting updated. How can I troubleshoot this problem?

To run the seeded agent listener, you should ensure that the Workflow Agent Listener Service container is running using Oracle Applications Manager for the version of Oracle Workflow embedded in Oracle Applications, or ensure that the WFALSNRSVC container is running using Oracle Enterprise Manager for the standalone version of Oracle Workflow.

To manage agent listener service components, use Oracle Workflow Manager, which is available as a component of Oracle Applications Manager if you are using the version of Oracle Workflow embedded in Oracle Applications, or as a component of Oracle Enterprise Manager if you are using the standalone version of Oracle Workflow. For more information, please refer to the Oracle Applications Manager online help or the Oracle Enterprise Manager online help.

See: Scheduling Listeners for Local Inbound Agents, Oracle Workflow Administrator's Guide.

Defining Credit Management System Options

Define these Oracle Credit Management system options.

Aging Bucket

Specify which aging buckets to use when presenting aging data in Credit Management. Credit Management presents aging data as data points in several pages, such as from the Aging Details and Credit Summary pages.

Note: To ensure that credit review comparisons display consistent aging data, you cannot change this system option once you have saved it.

See: Aging Buckets and Interest Tiers, Oracle Receivables Implementation Guide.

Frequently Asked Questions

Why does my Credit Management aging data not match my Oracle Receivables aging data?

Credit Management calculates its own aging data after pulling certain pieces of information from Oracle Receivables tables.

In Credit Management, the primary concern is around credit and collections. For example, what are the due dates and collection dates? In Receivables, the primary concern is around collection. For example, what are the effective dates, when was the receivable booked?

Due to this difference in focus, Credit Management and Oracle Receivables aging data can be different.

Default Customer Credit Classification

Credit classification assignments can either be assigned by a previously completed credit review, or assigned on the customer profile.

For those customers or prospects who do not yet have credit classification assignments, use this system option to select the credit classification that you want to use as the default on credit applications.

The default is High Risk.

See: Defining Customer Profile Classes, Oracle Receivables Implementation Guide.

Period for Time Sensitive Data

Select the period for which credit data will be collected into the summary tables and used in scoring during a credit analysis. Reviewing summarized order, invoice, and payment data over a period of time can provide you with an overall picture of a customer's past credit relationship with you, and can help to predict future performance.

A narrower time period shows short-term trends, while a longer time period shows long-term viability.

The default is 12 months.

See: Populating Transaction Data.

Application Numbering Option

Indicate if you want Credit Management to automatically assign a number to each credit application.

The default is Yes.

Caution: Carefully consider your business requirements before setting this system option to No. For example, credit review requestors from outside Credit Management can include a credit application ID in the credit review request itself. However, if the incoming credit request does not contain the credit application ID and the Application Numbering Option system option is set to No, then the workflow will fail, requiring manual intervention. A credit analyst will need to add a credit application ID to the application.

Exchange Rate Type

Select the default exchange rate type that Credit Management will use to convert foreign currency data points to your credit currency during a credit analysis. You can select Corporate, Spot, or User.

The default is Corporate.

Credit Management uses this value to convert data when data point values are calculated, and also for reporting.

DSO Days

Indicate the time period that Credit Management uses to calculate Days Sales Outstanding (DSO) and Delinquent Days Sales Outstanding (DDSO).

Note: Credit Management uses its own DSO calculation; this value is not populated from Oracle Receivables.

The default is 90 days.

Appeal Days

Other applications integrating with Credit Management can appeal a credit recommendation. You control the appeal period by entering a default number of days, after which an appeal is no longer allowed. Credit Management calculates the appeal expiration date as the recommendation date plus the Appeal Days value that you select here.

Defining Lookups

Credit Management uses lookups to help speed data entry and increase accuracy. You can use the predefined lookups that Credit Management provides, or you can create additional lookups where required.

For example, to identify an applicant's potential credit risk, you must select a credit classification, if not previously assigned, when entering a credit application. The credit classification describes the type of credit relationship that you have with the applicant.

Credit Management provides you with High Risk, Low Risk, Moderate Risk, and New Prospect, but you can optionally define new credit classifications to fit your business needs.

Use the Oracle Receivables Lookups window to define any additional lookups that you require.

Tip: After you add new credit classifications or reason types, bounce the apache server to make sure that the new values are available for users to select in the application.

The following table lists lookup types used for Credit Management.

Meaning Type Where Used
Credit Analysis Topic AR_CMGT_ANALYSIS_TOPIC Case folder
AR CM Collateral Category AR_CMGT_COLLATERAL_CATEGORY Credit application, case folder
AR CM Collateral Valuation Type AR_CMGT_COLLAT_VALUATON_ TYPE Credit application, case folder
Credit Classification AR_CMGT_CREDIT_CLASSIFICATION Credit application, checklist setup
Business Entity Type AR_CMGT_ENTITY_TYPE Credit application
AR CM Financial Data Monetary Unit AR_CMGT_FIN_DATA_MONETARY_UNIT Credit application, case folder
Financial Reporting Period AR_CMGT_FIN_REPORTING_PERIOD Credit application, case folder
Credit Recommendations for Trade AR_CMGT_RECOMMENDATIONS Case folder, automation rules setup
Review Type AR_CMGT_REVIEW_TYPE Credit application
Credit Recommendations for Term AR_CMGT_TERM_RECOMMENDATIONS Case folder, automation rules setup
Credit Management Internal Trade Ratings AR_CMGT_TRADE_RATINGS  
Asset Quantity Type for Class Other OCM_ASSET_QNT_ASSET_OTHER  
Asset Quantity Type for Machinery and Equipment OCM_ASSET_QNT_MACHINERY_EQPMNT  
Asset Quantity Type for Real Estate OCM_ASSET_QNT_REAL_ESTATE  
Asset Quantity Type for Securities OCM_ASSET_QNT_SECURITIES  
Asset Reference Type for Class Other OCM_ASSET_REF_ASSET_OTHER  
Asset Reference Type for Machinery and Equipment OCM_ASSET_REF_MACHINERY_EQPMNT  
Asset Reference Type for Real Estate OCM_ASSET_REF_REAL_ESTATE  
Asset Reference Type for Securities OCM_ASSET_REF_SECURITIES  
User Data Point Categories OCM_USER_DATA_POINT_CATEGORIES Additional data points setup

Related Topics

Reviewing and Updating Receivables Lookups, Oracle Receivables Implementation Guide

Updating Customer Profile Classes

In the Oracle Receivables Customer Profile Classes window, use the Collectors region on the Profile Class tab to assign credit information to your customer profile classes:

Related Topics

Defining Customer Profile Classes, Oracle Receivables Implementation Guide

Defining Credit Analysts

Overview of Oracle Credit Management Setup

Assign Customer Credit Classification Program

Use the Assign Customer Credit Classification program to add or update the credit classification on a customer.

Use this program when you first begin using credit classifications, or whenever you want to update multiple customers at once.

Otherwise, assign the credit classification at the customer profile class level, or at the customer or address level.

Selected Parameters

Update Existing Credit Classification: Select Yes to update the credit classification for all customers who are assigned to the specified profile class.

Select No if you do not want to update the credit classification for customers who already have existing credit classifications.

If you select No, then only customers who have no existing credit classifications are assigned the new credit classification.

Related Topics

Overview of Oracle Credit Management Setup

Defining Customer Profile Classes, Oracle Receivables Implementation Guide