1. Using Receivables Credit to Cash
  2. Overview of Credit Management

Overview of Credit Management

Credit Management provides a comprehensive system for developing and implementing policies and procedures to help you manage credit-related data and make intelligent credit decisions about your customers.

Credit Management is part of the Credit-to-Cash solution for capturing orders, billing customers, processing payments and adjustments, and managing all related accounting. The Credit Management solution includes the following processes:

  • Credit profiles and policies

  • Credit reviews

  • Credit review management

  • Credit management tools

Credit Profiles and Policies

Create a credit profile for each of your customers and customer accounts. The credit profile contains key information for establishing the creditworthiness of each of your customers, including credit classifications, credit limits, and credit review cycles.

You can set up a credit-only profile at the customer, or party, level for enterprises with an extended hierarchy of businesses. You can also create specific profiles for individual customer accounts.

Credit Reviews

A credit review begins when a credit-related event takes place.

There are three events that initiate credit reviews:

  • A customer fails a credit authorization request.

  • A customer is included in a scheduled run of the Periodic Credit Review process.

  • A credit analyst initiates a credit review for a new customer or for an occasional review of an existing customer.

All credit reviews begin with the creation of a credit case folder. The case folder is the central document that a credit analyst uses to review and make decisions about a particular customer credit review.

Credit Review Management

Use the Credit Reviews work area to review and manage credit case folders. Credit analysts can search case folders, view high-level information about their case folders, and take actions such as create a new case folder, reassign a case folder to another analyst, and close case folders.

The credit analyst uses the case folder to:

  • Review a customer credit score.

  • Where necessary, update the data point values that affect a credit score.

  • Provide recommendations for customer credit.

The credit manager can perform the functions of the credit analyst, as well as oversee the case folders of all his or her credit analysts, and approve or reject credit decisions.

Credit Management Tools

Credit Management provides tools for developing an analysis of customer creditworthiness and making informed credit decisions.

The Credit Management tools include:

  • Scoring models: Design scoring models to calculate a credit score based on credit data specific to a customer or customer account.

  • Data points: Enter and maintain detailed information about customer financial and accounting history to develop a picture of customer creditworthiness.

  • Case folder templates: Create case folder templates for different types of credit reviews, and automatically assign a specific template to a case folder during the initial credit review and case folder creation process.