Setting Up a Credit Insurance Policy
Access the Credit Insurance Definition form.
- Insurance Company
Enter the address book number of the insurance company. The system uses the address book number to associate the policy with the insurance company.
- Policy Number
Enter a reference number for information only.
- Policy Type
Enter a code from the UDC table (03B/TP) that specifies the type of policy that you are using for an insured credit limit. Values are:
1: General Policy. Use this policy for multiple customers.
2: Single Policy. Use this policy for a single customer. The system checks the insured credit limit in the Credit Insurance table (F03B29).
3: Single Policy with no credit check. Use this policy to check the standard credit limit instead of the insured credit limit. The system checks the credit limit in the Customer Master table (F03012).
For example, you might offer a customer a higher credit limit than the limit that is specified in the insured credit limit. You can do this by setting the standard credit limit in the Customer Master program to a higher amount than the insured credit limit in the Work with Credit Insurance program. In this example, when you enter a sales order, the system checks the standard credit limit and ignores the insured credit limit.
User-defined value: If you add a new policy type in the UDC table (03B/TP), the system processes this value in the same way as value 2; the system checks the insured credit limit stated in the corresponding insurance amount.
- Effective Date and Ending Date
Enter the date on which this policy takes effect and the expiration date of the policy.
- Insured Amount
Enter the maximum amount covered by an insurance company if a customer fails to pay.
- Currency Code
Enter the currency of the insured amount.
- Insurance Premium
Enter the fee that is paid to an insurance company to purchase an insured credit limit policy.
- Currency Code
Enter the currency of the insurance premium.
- Unit Cost
Enter the amount per unit, which is derived by dividing the total cost by the unit quantity.
- Units Purchased
Enter the number of units purchased.
- Percentage Coverage
Enter the percentage of the customer's open, unpaid balance that is insured by the policy. For example, if you enter 50, the insurance policy pays 50 percent of the customer's total open amount. The value that you enter in this field is for information only.