44 Manage Credit Information

This chapter contains these topics:

After you send an invoice to a customer for goods or services that are bought "on account," you might want to manage the customer's credit information. For example, you might want to view which parent accounts are due for a credit review, or you might want to increase the customer's credit limit. You manage credit information for a customer at the parent level.

44.1 Reviewing Customer Accounts

Navigation

From Accounts Receivable (G03), choose Credit/Collection Management

From Credit & Collection Management (G0315), choose Credit Manager

To determine whether a customer is over its credit limit, review the customer's account. This is the first task in managing credit information.

You can review an account (parent) that exceeds its credit limit by specifying:

  • Address book category code 1 (location or branch)

  • Address book category code 2 (account representative)

  • Credit manager

  • Collections manager

When you review a customer's account, you can determine if the customer is due for a credit review.

The following graphic illustrates the information that the system displays when you view credit information and where that information originates.

Figure 44-1 Viewing Credit Information

Description of Figure 44-1 follows
Description of ''Figure 44-1 Viewing Credit Information''

Credit information is stored in the following tables until the system updates the A/R Cash Management worktable (F0315):

  • Customer Master (F0301)

  • Message Log Ledger (F0113)

  • A/R Ledger (F0311)

44.1.1 Before You Begin

  • Run the Credit Analysis Refresh program (P03525) to ensure that the credit information you review is current.

To review customer accounts

On Credit Manager (P03215)

Figure 44-2 Credit Manager screen

Description of Figure 44-2 follows
Description of ''Figure 44-2 Credit Manager screen''

  1. Display all customers who are over their credit limit, or complete any of the following fields to limit the information displayed:

    • Branch

    • Account Representative

    • Credit Manager

    • Collection Manager

    • Company

    • Worked

    • Review

    • Aging (From)

    • Aging (Thru)

    • Limit

    • Sequence

  2. To review the total amount due and aging information, use the Alternate Format function (F15), then move forward or backward through the aging information using the Display Aging Forward/Backward function (F16/F17).

Figure 44-3 Credit Manager (Display Aging) screen

Description of Figure 44-3 follows
Description of ''Figure 44-3 Credit Manager (Display Aging) screen''

Field Explanation
Branch One of forty reporting codes that you can assign to an address in the Address Book system. Use these codes to identify addresses for reports, mailings, and so on. Category codes are user-defined (system 01, types 01 through 30). Examples:

Category code 01 – Location or Branch

Category code 02 – Salesperson

Category code 03 – New tenant

Category code 04 – Credit officer

Form-specific information

An * (asterisk) indicates all locations or branches

Account Representative One of thirty reporting codes that you can assign to an address in the Address Book system. Use these codes to identify addresses for reports, mailings, and so on. Category codes are user-defined (system 01, types 01 through 30). Examples:

Category code 01 – Location or Branch

Category code 02 – Account Representative

Category code 03 – New tenant

Category code 04 – Credit officer

Form-specific information

An * (asterisk) indicates all salespeople.

Worked A value of Y or 1 displays all credit customers whether they have been worked or not. A value of N, 0 or blank displays all credit customers that have NOT been worked.
Review The Accounts Receivable system automatically flags customers for review. This is based on a pre-planned credit review date or a current tickler (E-Mail) transaction. Other flags are provided to reflect over credit limit and customer delinquencies.

A value of Y or 1 displays ONLY those customers flagged for review. A value of N, 0 or blank will display ALL customers, whether flagged for review or not.

Aging (From) The category at which you want to begin the aging. For example, category 3 could indicate 60 - 90 days, and so on. You can use up to nine aging categories.
Aging (Thru) The category at which you want to end the aging. For example, category 3 could indicate 60 - 90 days, and so on. You can use up to nine aging categories.
Limit This field is used to select customers who have exceeded their credit limit as established on Customer Master Information. A value of N, or 0 displays all customers. A value of Y or 1 displays only those customers who have exceeded their credit limit.

Credit limits are established at the parent (national account) level.

Sequence The sequence in which a customer's balance displays.
  • 1 displays the customers in descending sequence based on the amount over the credit limit

  • 2 displays the customers in descending sequence of the highest balance of the oldest category


44.1.2 What You Should Know About

Topic Description
Reviewing additional customer information From Credit Manager you can access additional information that might be useful when reviewing a customer's account by entering an option in the Option field next to the Customer. For example, you can access:
  • Summarized account information, such as the date of the first and last invoice

  • Detailed customer ledger information

  • Detailed payment history

  • Electronic mail reminders with tickler dates

Multi-Currency If you specify a company, the system uses the decimals of that company's currency to display amounts. If you do not specify a company, the system uses the amount currency specified in the customer record.

44.2 Working Customer Accounts

Navigation

From Accounts Receivable (G03), choose Credit/Collection Management

From Credit & Collection Management (G0315), choose Credit Granting & Management

When managing credit information for a customer, the second task is to work the customer's account. When working an account, you might review and change the following for the customer at the parent level:

  • A customer's credit limit

  • The date of the next credit review

  • A tickler message about any action you take

An account is considered "worked" after you change the date of the next credit review or enter a message about the account's status.

When you revise the credit limit or next review date for a parent customer, the system updates the Customer Master table. However, the system does not update the following until you run the Credit Analysis Refresh program (P03525):

  • Open amounts for the customer

  • The amount over the credit limit

To work customer accounts

On Credit Granting & Management

Figure 44-4 Credit Granting & Management screen

Description of Figure 44-4 follows
Description of ''Figure 44-4 Credit Granting & Management screen''

  1. Locate the customer.

  2. Complete or change information in the following fields:

    • Credit Limit

    • Next Review Date

Field Explanation
Credit Limit The credit limit for a customer in the Customer Master Information table (F0301). This value is used throughout the credit management programs and is maintained for parent accounts.

This field is maintained as an integer, no decimals.

Next Review Date The review date for the customer's credit information.

44.2.1 What You Should Know About

Topic Description
Revising credit information You cannot change the Date of Last Review and Last Reviewed By fields. The system automatically updates them when you review and change the customer's credit limit.

44.2.2 Processing Options

See Section 106.3, "Credit Granting and Management (P0305)" for more information.

44.3 Reviewing Account Balances

Navigation

From Accounts Receivable (G03), choose Credit/Collection Management

From Credit & Collection Management (G0315), choose Account Balance Inquiry

When you work a customer's account, you might need to research whether the customer has exceeded its credit limit. To do so, review the customer's account balance.

You can view credit information for a parent company and its associated children by specifying one of the following:

  • Parent number (to view up to 25 levels of parent/child information)

  • Statement address number (to view open balances for a specific customer)

Account balance information is maintained in the A/R Cash Management worktable (F0315).

44.3.1 Before You Begin

  • Set up the necessary parent/child relationships and the instructions for statements on Customer Master Information.

  • Run Update A/R from Address Book (P03802) to update the A/R Ledger with current parent/child information.

  • Run the Credit Analysis Refresh program, P03525, to build the multi-level parent/child relationships.

To review account balances

On Account Balance Inquiry

Figure 44-5 Account Balance Inquiry screen

Description of Figure 44-5 follows
Description of ''Figure 44-5 Account Balance Inquiry screen''

  1. Complete one of the following fields:

    • Parent Number

    • Statement Address Number

  1. To further limit the information displayed, complete any of the following fields:

    • Level

    • Company

    • Currency

44.3.2 What You Should Know About

Topic Description
Reviewing the credit limit If you specify company 00000 or leave the company blank, access the detail area (F4) to view the credit limit of the parent customer.
Reviewing account balances for a parent customer When you review the account balance for a parent customer, you can:
  • Leave the company blank to display the total of the parent account and its children's accounts for all companies

  • Leave the Level field blank to display the total of all parent/child levels and their account balance

Multi-Currency
  • If you specify company 00000, the account balance represents the amount currency assigned in the customer record.
  • If you do not specify a company or a currency, the account balance is displayed in the domestic currency of the parent customer account.

  • If you specify a currency, the system only displays those account balances that are in the specified currency.