1. Implementing Receivables Credit to Cash
  2. How You Set Up a Customer Profile for Credit Checks

How You Set Up a Customer Profile for Credit Checks

The Credit Check service in the quote-to-cash process evaluates credit authorization requests according to the credit settings in the customer or customer account profile.

Set up the Credit and Collections section of each customer or customer account profile with the settings that you want to use to determine credit authorizations.

The settings used for credit authorization are:

  • Credit Limit field: Enter the total credit limit that the customer or customer account has available in the given currency.

  • Tolerance field: Enter the percentage that a customer can exceed their credit limit.

  • Conversion Rate Type field: Enter the conversion rate type to use to convert transaction amounts to the credit currency.

  • Include in credit check option:

    • If you enable this option, then the application compares the available credit in the applicable currency to the requested amount.

    • If you don't enable this option, then the customer or customer account is excluded from the credit check process.

  • Expiration Offset Days field: Enter the number of days to use in the calculation of the expiration date of a credit authorization.

How the Credit Authorization Expiration Date is Derived

Receivables derives the expiration date of a credit authorization depending on the available date information for the transaction and the value in the Expiration Offset Days field, if there is one.

The logic for deriving the credit authorization expiration date is as follows:

  • If the Expiration Offset Days field contains a value, then:

    • If the fulfillment/shipment date is provided, then: Expiration Date = Fulfillment/Shipment date + Offset Days.

    • If fulfillment/shipment date isn't provided, but the sales order date is provided, then: Expiration Date = Sales Order Date + Offset Days.

    • If neither the fulfillment/shipment date nor the sales order date is provided, then: Expiration Date = Credit Authorization Date + Offset Days.

  • If the Expiration Offset Days field doesn't contain a value, then:

    • If the fulfillment/shipment date is provided, then: Expiration Date = Fulfillment/Shipment date + 5.

    • If fulfillment/shipment date isn't provided, but the sales order date is provided, then: Expiration Date = Sales Order Date + 5.

    • If neither the fulfillment/shipment date nor the sales order date is provided, then: Expiration Date = Credit Authorization Date + 5.

Related Topics