11Define Credit Management

This chapter contains the following:

Maintain credit profiles for your customers and customer accounts.

The credit profile contains settings that are used to:

  • Create a line of credit for a customer.

  • Provide an ongoing review of the credit profile of a customer.

  • Contribute to the credit review process for a customer.

The credit profile is integral to managing the credit policies of your enterprise and the creditworthiness of each of your customers.

Define a Credit Profile

You can either enter data directly into a profile page, or use the File-Based Data Import customer import template to enter and upload credit-related information for your customer and customer account profiles.

You can define and maintain credit profiles at the customer level and customer account level only:

  • Define a credit-only profile at the customer, or party, level. The customer credit profile facilitates credit reviews at the company level and contributes to the overall credit picture of a company.

    By default, the settings of the customer credit profile apply to all accounts of the customer. You can update the default settings of the customer credit profile in individual customer account profiles, according to your business requirements.

  • Define a credit profile at the customer account level, as part of your account profile setup. The settings of the customer account credit profile apply to all customer sites.

You can also define customer profile classes, with the credit settings you want, and apply individual profile classes to customers or customer accounts.

When necessary, you can enter an effective end date for a profile and apply a new or updated profile to the customer or customer account, according to your business requirements.

Credit Profile Settings

The following table describes each of the settings in the credit profile. Some of these settings are used in the customer profile only or the customer account profile only.

Setting Usage

Effective Start/End Dates

The date range that a customer profile is active. A new effective start date begins the day after a previous effective end date.

Credit Analyst

The default credit analyst assigned to credit case folders for the customer. This includes case folders created due to credit authorization failures or the periodic review process.

Credit Classification

The credit classification of the customer. The combination of the credit classification and the case folder review type determine the credit case folder template to use to create a credit case folder for this customer.

Credit Limit

The total amount of credit in the credit currency assigned to the customer.

If the Include in credit check option is enabled and the Tolerance value is 0, and the outstanding credit balance exceeds this amount, then the requested credit authorization fails.

You can use the Customer Import FBDI template to remove any existing value from this field in customer credit profiles by entering #NULL in the Credit Limit column.

Order Amount Limit

The amount limit in the credit currency for an individual order for the customer.

If the Include in credit check option is enabled, and an individual transaction amount exceeds this amount, then the requested credit authorization fails.

You can use the Customer Import FBDI template to remove any existing value from this field in customer credit profiles by entering #NULL in the Order Amount Limit column.

Credit Currency

The currency of the credit limit value and order amount limit value. The credit currency is used to display all amount-based values in credit case folders created for the customer or customer account.

The credit currency does not have to be the currency of customer transactions. Depending on your business requirements, you can, for example, define a credit currency for all customers belonging to a certain global region or business sector.

Tolerance

The percentage that a customer or customer account can exceed the credit limit value.

For example, if the Include in credit check option is enabled and the Tolerance value is 10, the effective credit limit is the credit limit defined in the profile plus 10% of the credit limit value.

Risk Code

The code that identifies the level of credit risk for the customer or customer account. You can define additional risk codes using the Customer Credit Risk lookup type.

Credit Rating

The credit rating for the customer or customer account. You can define additional credit rating names using the Credit Rating for Customers lookup type.

Conversion Rate Type

The conversion rate type to use in credit calculations, when the requested authorization amounts are in a currency different from the credit currency.

Expiration Offset Days

The number of days before a credit authorization expires. Enter a number according to your business requirements and your credit policy for the customer or customer account.

Credit Review Cycle

The review cycle period to use for regular credit reviews of the creditworthiness of the customer or customer account. Valid values are Quarterly, Semiannually, Annually.

You can use the Customer Import FBDI template to remove any existing value from this field in customer credit profiles by entering #NULL in the Credit Review Cycle column.

Last Review Date

The date of the last credit review for the customer or customer account.

This date is updated every time a credit case folder is created for the customer or customer account, either manually or automatically by the periodic review process or credit check failure.

You can use the Customer Import FBDI template to remove any existing value from this field in customer credit profiles by entering #NULL in the Last Review Date column.

Next Review Date

The default date of the next credit review, based on the last review date and the review cycle period assigned to the profile.

If the Last Review Date value is updated, the Next Review Date value is recalculated accordingly.

You can use the Customer Import FBDI template to remove any existing value from this field in customer credit profiles by entering #NULL in the Next Review Date column.

Include in credit check

This option is enabled by default.

When enabled, a credit check is performed when the credit checking service is called for the customer or customer account.

Credit hold

This option is not enabled by default.

If you enable this option, the following actions take place on the applicable customer or customer account credit record:

  • Order Management places any existing order on hold.

  • The credit checking service returns a message acknowledging the hold and doesn't check available credit.

  • You can't import invoices from Order Management into Receivables using AutoInvoice.

You can still create new Receivables transactions manually for the customer or customer account.

Designate users as credit analysts and credit managers to operate, maintain, and manage the credit review process for your customers and customer accounts.

Use the Security Console to assign the credit manager role and privileges to users, and to use the credit manager role to create a credit analyst role.

The credit manager setup includes:

  • Role code: ORA_AR_CREDIT_MANAGER_JOB.

  • Function security policy: ORA_AR_CREDIT_MANAGER_JOB.

The credit analyst setup includes:

  • Role code: User-defined.

  • Function security policy: Define the credit analyst role using the function security policy of ORA_AR_CREDIT_MANAGER_JOB as a starting point, and then remove the privileges that a credit analyst doesn't need, such as the Manage Credit Review Advanced privilege.

Credit Analyst

The credit analyst is responsible for monitoring the creditworthiness of customer accounts and assisting in the resolution of credit-related issues.

The credit analyst entered on a credit profile is by default assigned all case folders for the customers and customer accounts with this profile. Credit analysts are also assigned any case folders that they themselves create manually.

Credit analysts can reassign their own case folders to other credit analysts, but can't reassign the case folders of other analysts.

Credit Manager

The credit manager has responsibility for a team of credit analysts.

Credit managers have access to the case folders and credit review information of their own customers and customer accounts, and of the customers and customer accounts assigned to all credit analysts on their team. Credit managers are responsible for the final approval of a case folder.

The credit manager can perform all of the credit analyst duties. In addition, the credit manager can perform these tasks, as part of the Manage Credit Review Advanced privilege:

  • Reassign case folders from one credit analyst to another.

  • Approve or reject all case folders belonging to the team.

Create scoring models to use in the calculation of customer credit scores. You can create a different scoring model for each type of credit review that you need. This lets you apply standard and consistent scoring guidelines across your customers and customer accounts.

You assign scoring models to credit case folder templates. When a credit review is initiated and a case folder created, the appropriate template and scoring model is assigned to the case folder for the credit review process.

A scoring model includes the data points and scoring method that are appropriate for a particular credit review. When you create a scoring model, for each data point:

  • Enter all of the ranges of values that you need to define for a given data point.

  • Assign a score to each range of values.

  • Assign a relative weighting factor to the data point, as it relates to all other data points.

During a credit analysis, the scores that you assigned to each data point range of values are used to calculate the score.

Note: Credit scores are calculated as whole integers, with decimal values .5 or greater rounded up. For example, 70.5 becomes 71, and 70.4 becomes 70.

To create a scoring model:

  1. Navigate to Setup and Maintenance > Manage Credit Scoring Models page.

  2. Click the Plus (+) icon to open the Create Credit Scoring Model page.

  3. In the Name and Description fields, enter the name and description for this scoring model.

    You may want to use a name that identifies the type of scoring model, either as it relates to a case folder template or to a subset of your customers.

  4. In the Start Date field, enter the date that you want this scoring model to become active. The default is the system date, but you can change it to a future date.

  5. Use the End Date field to define a limit of active operation for a scoring model. The only valid end date is the current date.

    When you create a new case folder or attach a scoring model to a case folder template, you can only select a scoring model that either has no end date or has an end date that is later than the case folder or case folder template creation date.

    Note: Once you enter an end date and save your work, you can no longer change or remove the end date. This ensures that your credit policies are strictly enforced and that comparisons across scoring models remain meaningful.
  6. In the Currency field, select the scoring model currency.

    All data point values used in the calculation of the credit score convert to the scoring model currency.

  7. Use the Convert Null Values to Zero Values option to indicate how the scoring model should treat data points with null values. This option is enabled by default.

    Note: If you disable this option, then the scoring model doesn't calculate a credit score if data points contain null values. In this case, after case folder creation the credit review process stops and the credit analyst must manually enter values for these data points.
  8. In the Data Points section, click the Plus (+) icon to open the Add Data Points window.

  9. In the Add Data Points window, search for and select the data points you want.

    Use the Category field to display all data points belonging to a particular category. You can select multiple data points and click the Apply button to assign them to the scoring model. You can then search for data points belonging to a different category and continuing selecting and applying data points to the scoring model.

  10. After adding all of the data points you want, click the OK button to return to the Create Credit Scoring Model page.

  11. In the Data Points section, select the first data point.

  12. In the Weight field, enter the relative weight of this data point.

    The weight that you assign indicates the relative importance of the data point in the scoring model.

  13. In the Details section, click the Plus (+) icon to open a row for entering the first range of values and corresponding score for this range.

  14. In the From Range and To Range fields, enter the range of values. You can enter up to 15 characters for each value in the range. Ranges can't have gaps or overlaps.

    For numeric data points, the To Range value of the first row must be the same as the From Range value of the second row.

    This table shows numeric ranges with no gaps:

    Range From To Score

    Current Balance

    0

    1000

    10

    Current Balance

    1000

    2000

    20

    Current Balance

    2000

    3000

    30

    For alphanumeric data points, enter only one value per row of ranges, that is, both the From Range and To Range values must be the same.

    This table shows two range values:

    Range From To Score

    Range 1

    A2B

    A2B

    10

    Range 2

    B3B

    B3B

    5

  15. In the Score Value field, enter a numeric score for this range of values.

    Though not required, a common principle for assigning a score is: The higher the score, the lower the credit risk. Your scores then decrease in number as you enter your ranges of values, with the score for the highest level of risk at or near zero (0).

  16. Continue to add rows and enter ranges of values and corresponding scores for each range.

    The ranges that you enter should include all possible values for the given data point, from the point of view of establishing credit risk.

  17. Repeat steps 11 to 16 for each data point.

  18. Select the Enabled option to activate the scoring model.

    You can later deselect the Enabled option to render the scoring model inactive. You may want to do this instead of entering an end date if your credit requirements change temporarily, but you want the scoring model available for later use.

    Note: If you disable a scoring model you must ensure that it is not used by an active case folder or case folder template.
  19. Save your work.

Use the Scoring Model pages to create and update a scoring model to use in the calculation of the credit score for a customer or customer account.

The scoring model calculation for the credit score depends upon these scoring attributes assigned to each data point in the scoring model:

  • Data point ranges of values.

  • Score assigned to each data point range of values.

  • Weights assigned to each data point.

The totality of the data points, their relative weights, and the scores for each of their range of values is the scoring model calculation used to arrive at a credit score.

Assign Scores

For each data point that the scoring model includes, you must assign a range of values and a corresponding score for each range. The ranges of values for a data point typically represent levels of credit risk.

For ranges, you can enter numeric ranges, and alphanumeric ranges with one range value per row for data points that are scorable.

For scores, you must enter numeric values. The corresponding credit risk is either the result of ascending or descending numeric scores, depending on how you arrange them.

This table illustrates sample ranges and scores for the Percentage of Invoices Paid Late data point:

Credit Risk From Range To Range Score

Low

0

10

100

Moderate

10

60

50

High

60

100

0

This table illustrates sample ranges and scores for the Days Sales Outstanding (DSO) data point:

Credit Risk From Range To Range Score

Low

0

10

100

Moderate

10

25

60

High

25

50

25

Highest

50

100

10

Assign Weights

Assign a weighting factor to each data point to indicate the relative importance of each data point in the scoring model. Your definition of "relative importance" depends on how you plan to use a scoring model.

For example, if you are creating a scoring model to determine a credit limit increase for an existing customer with years of credit history with your enterprise, you might assign a higher weighting factor to the Percentages of Invoices Paid Late data point, and a lower weighting factor to, for example, data points that represent credit agency scores or ratings.

To continue with the example, this table illustrates the possible weighting factors for the two data points Percentage of Invoices Paid Late and the Days Sales Outstanding (DSO) data points:

Data Point Weight

Percentage of Invoices Paid Late

75

Days Sales Outstanding (DSO)

25

In this example, the respective weights contribute to the total credit score in this way:

  • Percentage of Invoices Paid Late weight is 75/(25+75)=75% or 0.75

  • Days Sales Outstanding (DSO) weight is 25/(25+75)=25% or 0.25

The Percentage of Invoices Paid Late weight contributes 75% toward the total credit score. The Days Sales Outstanding (DSO) weight contributes 25% toward the total credit score.

Calculate the Score

This scoring example illustrates how the credit score is calculated, based on the scoring model defined in the previous examples.

The calculation of a credit score is the sum of the weighted points earned expressed as a percentage. A point earned is the score assigned to a data point value, determined by the scores assigned to the data point ranges. A weighted point earned is the product of the point earned and the weight assigned to the data point.

This table shows the points earned for the credit case folder that uses this scoring model:

Category Data Point Value Points Earned

Billing and Payments

Percentage of Invoices Paid Late

57%

50

Billing and Payments

Days Sales Outstanding (DSO)

15 days

60

The Percentage of Invoices Paid Late for this customer is 57%, which in the scoring model falls into the Moderate Risk range of 10% > 60%. The score assigned to this range is 50, the points earned are 50.

The weight assigned to this data point in the scoring model is 75%, or .75. The weighted points earned (points earned x weight) for the Percentage of Invoices Paid Late data point is 50 x .75 = 37.5.

The Days Sales Outstanding (DSO) for this customer is 15 days, which in the scoring model falls into the Moderate Risk range of 10 > 25 days. The score assigned to this range is 60, so the points earned are 60.

The weight assigned to this data point in the scoring model is 25%, or .25. The weighted points earned (points earned x weight) for the Days Sales Outstanding (DSO) data point is 60 x .25 = 15.

The credit score formula, as the sum of the weighted points earned expressed as a percentage is:

Credit score = points earned 1 x weight 1 (in percentage) + points earned 2 x weight 2 (in percentage) + ...

In this case, points earned 1 = 50, weight 1 in percentage is 0.75; points earned 2 = 60, weight 2 in percentage is 0.25. So:

Credit score = 50x0.75 + 60x0.25 = 52.5 (out of 100)

Create credit case folder templates to use in the creation of your credit case folders.

The credit case folder template defines:

  • Data points to display in the case folder.

  • Definition of the required and optional data points in the case folder that are made available for a given credit review.

  • If applicable, the scoring model to use in a case folder for a customer or customer account.

A credit case folder is created for a combination of credit classification and review type. You can set up your case folder templates for each of these combinations. You can create more than one case folder template with the same combination, according to your credit policies, but only one template with a given combination can be active and enabled at any one time.

For example, during an Ad Hoc Review, a High Risk customer might require additional collateral and bank reference data points on which to base a credit decision. Or during a Periodic Review of a Moderate Risk with D&B customer, you may rely mainly on the D&B Paydex Score and D&B Rating data point values.

When a credit review is initiated and a case folder created, a case folder template is assigned based on the credit classification and review type combination. If a template can't be found with this combination, then the case folder template you designated as the default is used.

To create a case folder template:

  1. Navigate to Setup and Maintenance > Manage Credit Case Folder Templates page.

  2. Click the Plus (+) icon to open the Create Credit Case Folder Template page

  3. In the Name and Description fields, enter the name and description for this case folder template.

    You may want to use a name that identifies the type of case folder template, as it relates to the combination of credit classification and review type.

  4. In the Start Date field, enter the date that you want this case folder template to become active. The default is the system date, but you can change it to a date earlier than or later than the system date.

    Active and enabled case folder templates are available for use with case folders created on or after the case folder template start date.

  5. Use the End Date field to define a limit of active operation for a case folder template. You can create more than one case folder template for a given combination of credit classification and review type, if your credit policies change, or you anticipate that they will change in the near future. To do this, apply a future end date to the current template and create a new template with a start date after the current template end date.

    Note: Once you enter an end date and save your work, you can no longer change or remove the end date.
  6. In the Scoring Model field, optionally enter the scoring model to use with this case folder template.

    If you don't select a scoring model, the data points you set for this template are used by the credit analyst for credit determination, but no credit score is calculated.

  7. In the Data Points section, use the Category field to display the data points of a specific category only. By default, the Data Points section displays all data points for all categories

  8. Use the fields in the Include in Case Folder column to identify the data points to include in the case folder template:

    • No: The default. These data points don't appear in the template after you save it, and don't appear in any case folder created using this template

    • Required: The data point is included in the template and a value is required for credit determination and to calculate the credit score in the credit case folder that uses this template.

      In the credit case folder, required data points that don't have a value are labeled with a warning icon.

    • Optional: The data point is included in the template, but a value is not required. Optional data points provide credit analysts with additional flexibility in determining the values needed for a particular credit determination.

    Note: If you selected a scoring model for this template, you still need to set the scoring model data points as Required or Optional in order for them to appear in a credit case folder that uses this template. If the credit analyst enters a value in an optional data point that is scorable, then this value is included in the credit score calculation.
  9. After you have set all of the data points you want for the template, save your work.

The values for many of the data points are maintained in the Receivables summary tables AR_TRX_BAL_SUMMARY and AR_TRX_SUMMARY.

AR_TRX_BAL_SUMMARY

The AR_TRX_BAL_SUMMARY table maintains summary data related to customers and customer accounts.

The table includes summary data in these data point categories:

  • Aging: All open counts and amounts; and past due, adjustment, and at risk amounts.

  • Billing and Payments: Payment-related data.

  • Business Information and Credit: Current receivables balance.

The lowest level of granularity for a data point value stored in this table is at the level of a customer bill-to site of a given customer account in a specified currency.

A data point value from the AR_TRX_BAL_SUMMARY table that is displayed in the case folder for a customer or customer account is derived in this way:

  • Add up all values across all bill-to sites (for customer account case folders) or all customer accounts (for customer case folders).

  • Convert the values to the credit currency using the values defined for currency and conversion rate type in the customer or customer account profile.

  • If the credit currency defined in the customer or customer account profile is not the same as the scoring model currency, the data point values used for scoring are converted to the scoring model currency.

AR_TRX_SUMMARY

The AR_TRX_SUMMARY table maintains summary data related to customer and customer account transactions.

The table includes summary data in these data point categories:

  • Billing and Payments: Transaction counts, amounts, and percentages.

  • Business Information and Credit: Credit amounts and dates.

The data in the AR_TRX_SUMMARY table is over a 12-month time period. The display of summarized order, invoice, and payment data over this period of time can provide you with an overall picture of your relationship with the customer or customer account, and can help you predict future performance.

The lowest level of granularity for a data point value stored in this table is at the level of a customer bill-to site of a given customer account in a specified currency in the given 12-month period.

A data point value from the AR_TRX_SUMMARY table that is displayed in the case folder for a customer or customer account is derived in this way:

  • Add up all values with the most recent As-of date across all bill-to sites (for customer account case folders) or all customer accounts (for customer case folders).

  • Convert the values to the credit currency using the values defined for currency and conversion rate type in the customer or customer account profile.

  • If the credit currency defined in the customer or customer account profile is not the same as the scoring model currency, the data point values used for scoring are converted to the scoring model currency.

Run the Process Receivables Transactions for Customer Account Summaries Process

During the life of a case folder, customer data is likely to change with new transactions, adjustments, payments, disputes, and other transaction and balance updates.

You can update the data in the AR_TRX_BAL_SUMMARY and AR_TRX_SUMMARY tables to reflect all of these change by using the Process Receivables Transactions for Customer Account Summaries process.

Schedule a regular run of the Process Receivables Transactions for Customer Account Summaries process to refresh the applicable customer account summary data for all related data points.

After the AR_TRX_BAL_SUMMARY and AR_TRX_SUMMARY tables are refreshed, you can open any applicable case folder and select Refresh Data from the Actions menu to refresh the data points in the case folder.

You can import credit data from third-party credit services for use as data point values in your scoring models.

You can import credit data for these data point categories:

  • Bank References

  • Business Information and Credit

  • Collateral

  • Financial Data

  • Guarantors

  • References

  • Trade References

  • Venture Funding

  • Additional data points (data not covered by the available categories)

Use the Upload Credit Data Template worksheet to enter customer credit data from third parties using data point categories, data points, and data point values. Use the Import Credit Data process of the Load Interface File for Import process to upload the completed worksheet.

To upload credit data from a third party credit service:

  1. Download the Upload Credit Data Template.

    Review the information on the template Instructions tab.

  2. Complete each row in the worksheet for the customers and data point values you want. For each data point value, enter:

    • Customer party number (registry ID)

    • Customer account number, if the data is applicable to a customer account only

    • Data point category

    • Data point name

    • Data point value

    • Data point value currency

    Note: You can only enter one data point value for the same combination of customer, customer account, data point category, and data point name.
    Note: The Currency column is required for most data points that take a numeric value, such as Bank References average balance and current balance, Venture Funding amounts, and most Financial Data. See the Upload Customer Credit Data Template instructions for details.
  3. After completing the template, generate the .zip file for upload.

  4. Navigate to Scheduled Processes.

  5. Navigate to the Load Interface File for Import process.

  6. In the Import Process parameter, select Import Credit Data.

  7. In the Data File parameter, select the .zip file you generated in step 3.

  8. Submit the Load Interface File for Import process.

    Note: If data point values already exist, the newly imported data overwrites the existing values.
  9. Review the completed upload process, and review the log file for upload errors and for any rows that failed to import successfully.

Use the Import Credit Data process to import credit data from third-party organizations for use as data point values in your scoring models.

You can download a customer credit data FBDI template to use to prepare your data. The template contains an instruction sheet to help guide you through the process of entering your information.

To access the template, complete the following steps:

  1. Navigate to the File-Based Data Import for Oracle Financials Cloud guide.

  2. In the Table of Contents, click File-Based Data Imports.

  3. Click Credit Management Data Points Import.

  4. In the File Links section, click the link to the Excel template.

Follow these guidelines when preparing your data in the worksheet:

  • Enter the required information for each column. Refer to the tool tips on each column header for detailed instructions.

  • Do not change the order of the columns in the template.

  • You can hide or skip the columns you do not use, but do not delete them.

After you have completed the template, upload it using the Load Interface File for Import process:

  1. In the Import Process field, select Import Credit Data.

  2. In the Data File field, enter the completed template.

  3. The Load Interface File for Import process uploads the credit data for each customer included in the template. The import process checks for the uniqueness of the customer (party) number and customer account number (if entered).

Settings That Affect the Upload Customer Credit Data Template

The Upload Customer Credit Data import template contains an instructions tab and a Customer Credit Data tab:

Spreadsheet Tab Description

Instructions and CSV Generation

Contains instruction information about preparing and loading data, the format of the template, submitting the Import Credit Data process, and correcting import errors.

CustomerCreditData

Enter credit data point information for each applicable customer and customer account.

How Customer Credit Data Is Processed

You can import credit data from third-party organizations for these data point categories:

  • Bank References

  • Business Information and Credit

  • Collateral

  • Financial Data

  • Guarantors

  • References

  • Trade References

  • Vendor Funding

  • Additional (for user-defined data points)

You enter one data point value for the same combination of customer, customer account, data point category, and data point name. If the data point takes a numeric value, then in many cases you need to add a currency.

The validated data points become available for use in scoring models created for the applicable customers and customer accounts.

Use descriptive flexfields to pass additional source transaction information for credit check requests. This information is passed to credit case folders created as a result of a credit checking failure.

You can pass information about the source transaction requesting the credit check, including, for example, Contract Start Date, Contract Billing Frequency, and Contract Invoicing Rule. The descriptive flexfields are displayed in the Additional Information section of the Edit and View Credit Case Folder pages.

You can edit these additional attribute values before the case folder is approved. Once the case folder is approved, these values are displayed as read-only.

You must ensure that the credit case folder descriptive flexfields you define match the values passed through the credit checking service. If the data types for the attributes do not match, or if the descriptive flexfields are not defined, these additional attributes will not appear in case folders created as a result of a credit check failure.

FAQs for Define Credit Management

The credit rating, and the risk code, are user-definable values available for use as internal commentary or notes about a customer or customer account. These values don't have a programmatic usage.

The credit classification is an integral part of managing the creditworthiness of a customer. The combination of the credit classification on the credit profile and the case folder review type (Ad Hoc Review, Periodic Review, Credit Check Failure) determine which credit case folder template to use to create a case folder for a customer credit review.

For example, a customer profile with a credit classification of High Risk and a review type of Credit Checking Failure may create a case folder requiring a detailed review of the customer's credit history, while a customer profile with a credit classification of New Customer and a review type of Ad Hoc Review may require only a formal review process.

You can use the AR: Default Credit Management Currency profile option to define a default credit currency. The credit checking process uses this currency if no credit currency is defined in the applicable customer, customer account, or party profiles.

If the AR: Default Credit Management Currency profile option is not defined, the credit checking process uses US dollars (USD) as the credit currency.

If no conversion rate type is defined, then the credit checking process uses the conversion rate type Corporate.

Because it is used by a case folder or case folder template. You can't delete or update the contents of a scoring model in use.

In the Manage Credit Scoring Models page, you can disable or apply an end date to a scoring model. If you apply an end date, you must either assign a new scoring model or ensure that a comparable end date is applied to the applicable case folder or case folder template.

You can only add scorable data points to a scoring model. A scorable data point uses ranges of values that you assign score values to. These score values are used to calculate the credit score.

Non-scorable data points provide reference information only. You can add non-scorable data points to a case folder to help with the evaluation of a customer's credit.

A null data point value indicates no activity. A zero data point value indicates that activity has occurred in the past, but there is no current value for the data point.

For example, for the Count of Invoices Paid Late data point, a null value means that no payments have been made, while a zero value means that all invoices were paid on time.

You define the credit currency in customer credit profiles.

The credit case folders for a customer or customer account display all amount-based values in the credit currency, including available credit, credit limit, and data point values.

The scoring model currency is used to display all amount-based values for data points and data point ranges in the Scoring Model pages.

A scoring model, as part of a case folder template, is used to calculate credit scores for many different customers. If a credit case folder uses a scoring model, the amount-based data point values appear in the credit currency in the Credit Case Folder pages and in the scoring model currency in the Scoring Details page.

Depending on your business requirements, you may want to use a globally recognized currency, such as US dollars or Euros, as the scoring model currency, and a currency representative of a certain global region or business sector as the credit currency.

To calculate a credit score in credit case folders created with this credit case folder template. If all of the data points have values during case folder creation, the credit score is calculated automatically. During the credit review, you can enter, add, and update data point values and recalculate the score.

If a case folder template doesn't use a scoring model, then case folders created with this template display the data points you set as Required and Optional without calculating a score. You can use these data points to evaluate the creditworthiness of a customer or customer account. You can also use third-party credit ratings, available as data point values.

The default case folder template is assigned to case folders during a credit review when no template can be found with a specific credit classification and review type combination.

You can only have one default case folder template. The default case folder template must be enabled and have a start date on or before the current date, but with no end date. You can't use a case folder template with an end date as the default.

In the Manage Credit Case Folder Templates page, select a template and click the Set as Default button. Any previous default template is reassigned to the new designated template.

Yes. If the template has not been used to create a case folder, you can edit the entire contents of the template, except for the template name.

If the template has been used to create a case folder, you can only apply an end date to the template or deselect the Enabled option. If you make either of these updates, you must ensure that this doesn't affect any current case folders.