Guidelines for Setting Up Credit Check

Determine When to Check Credit

Credit check during order entry or order fulfillment.

Note

Option 1. Check credit when the Order Entry Specialist clicks Submit when creating or revising a sales order.
- Submit the sales order to order fulfillment but hold order lines that fail credit check.
- Don't submit the sales order to order fulfillment. Instead, set the status to Credit Review Pending, and route the sales order to a credit analyst to do credit check.
Option 2. Check credit during order fulfillment. For example, add a credit check step to the orchestration process after scheduling and reserving the item, but before shipping it.
Option 3. Check credit during order entry at order submit, then check credit again during order fulfillment.

Order Management processes credit check differently during order submit or order fulfillment.

Question	Check Credit On Submit	Check Credit During Order Fulfillment
How does Order Management send order lines to Credit Management?	Send order lines as a group according to bill-to customer.	Send one fulfillment line at a time.
What happens when an order line fails credit check?	Order Management does one of these. Place order line on credit check hold. Lock order line, set status to Credit Review Pending, and wait for credit analyst to review case folder.	Set fulfillment line to error.
How can an order line that fails credit check proceed?	Order Entry Specialist does one of these. Manually releases hold. Revises the sales order to status Draft, modifies it, and submits it again.	Do one of these. Order Entry Specialist revises the sales order. Credit analyst adjusts credit limit, then Order Management runs a scheduled process that you set up that retries the orchestration process step. The Order Entry Specialist can also manually retry.
Limitations	Credit check happens only for all order lines in the entire sales order. You can't check credit for a single line or only for some lines. Order Entry Specialist can't modify attributes that affect credit while the fulfillment line is on credit check hold. Order Entry Specialist can only cancel the line.	Order Entry Specialist can't manually proceed past the credit check. Can only retry the step.

Order Management processes credit check differently depending on the state of the order lines.

State of Order Lines	Check Credit On Submit	Check Credit During Order Fulfillment
In draft.	Allow all changes. Make changes, then recheck credit on all lines.	Fulfillment hasn't started, so allow all changes.
Lines are in order fulfillment, and. Before credit check step. In error because credit check failed during fulfillment. Credit check finished.	Order Management rechecks each line that it checked earlier during submit. It does the recheck regardless of the change. It creates a new authorization.	Allow all changes. Apply normal change processing. If Order management finished credit check during order fulfillment, and if credit check fails when processing the change, then Order Management doesn't allow the Order Entry Specialist to revise the sales order. You must use error recovery to fix the problem.
In order fulfillment, on credit hold.	If changed attributes. Affect credit. Reject revision. Don't affect credit. Recheck credit.	Allow all changes. Apply normal change processing.

State of Order Lines

Check Credit On Submit

Check Credit During Order Fulfillment

In draft.

Allow all changes.

Make changes, then recheck credit on all lines.

Fulfillment hasn't started, so allow all changes.

Lines are in order fulfillment, and.

Before credit check step.
In error because credit check failed during fulfillment.
Credit check finished.

Order Management rechecks each line that it checked earlier during submit. It does the recheck regardless of the change. It creates a new authorization.

Allow all changes. Apply normal change processing.

If Order management finished credit check during order fulfillment, and if credit check fails when processing the change, then Order Management doesn't allow the Order Entry Specialist to revise the sales order. You must use error recovery to fix the problem.

In order fulfillment, on credit hold.

If changed attributes.

Affect credit. Reject revision.
Don't affect credit. Recheck credit.

Allow all changes. Apply normal change processing.

Check Credit During Order Fulfillment

Here's when you can check credit during order fulfillment.

Your fulfillment cycles run for a long time. For example, run credit check immediately before shipping to make sure credit authorization hasn't expired while process the sales order through fulfillment.
You import sales orders from a source system, the source system already checked credit, so you don't want to check credit again when submitting the order to fulfillment. But you also don't want to send the order to shipping if credit authorization expired. A long delay might exist between the time the source system checks credit and when the item is ready to ship.

Here's how it works.

how check credit works during order fulfillment

Note

Order Entry Specialist clicks Submit.
The orchestration process starts fulfillment, such as schedule inventory, reserve inventory, then reaches credit check step.
If the expiration date of the credit authorization is expired, or if Order Management hasn't already done credit check at least one time, then the orchestration process sends a request to Receivables to do credit check on fulfillment lines.
- If credit check passes the first time Receivables performs credit check, then it creates an authorization number and authorization expiration date.
  
  For example, assume you do credit check during order submit on January 1, 2019, credit check passes, and Receivables sets the expiration date to January 10, 2019. If the orchestration process runs the credit check step on.
  - January 2 during fulfillment, then it won't run credit check again, but will instead proceed to the next orchestration process step.
  - January 11, then it will run credit check again.
- The orchestration process sends only the fulfillment lines that require credit check. It doesn't send the entire sales order.
If credit check fails, then the fulfillment line goes into error and processing stops.
- Credit analyst must adjust credit in Credit Management in Receivables.
- Orchestration process will run credit check step again after credit analyst adjusts credit.

Set the Order Management Parameter

Set the value for the Credit Check Failure at Order Submit parameter.

Note

Value	Description
Save Order in Draft Status	Save the sales order in the Draft status. Don't send any lines to order fulfillment. Use when. Your sales order includes more than one value for Bill-to Customer on the order lines, and you must move the order to fulfillment only if credit check passes for all bill-to customers. You don't need to do credit check during fulfillment. You don't need to release credit check hold so fulfillment can continue. You can wait for the credit analyst to resolve the hold.
Submit Order with Hold on Lines that Failed Credit Check	Save the sales order in Processing status, place a hold on each order line that fails credit check, then send order lines that aren't on hold to fulfillment. Use when. Your sales orders sometimes include more than one value for Bill-to Customer on the order lines, and you must move the order to fulfillment even if credit check fails for some or all bill-to customers. For example, if credit check for Bill To Customer x succeeds, and if credit check for Bill To Customer y fails, then Order Management can send order lines for customer x to order fulfillment, and place order lines for customer y on hold. If order lines include only one Bill To Customer value, then Order Management uses the order total when it checks credit. You don't revise attributes that affect credit check, or you might cancel the failed lines. You must release credit check hold so fulfillment can continue, even if you must manually release the hold.

Value

Description

Save Order in Draft Status

Save the sales order in the Draft status. Don't send any lines to order fulfillment.

Use when.

Your sales order includes more than one value for Bill-to Customer on the order lines, and you must move the order to fulfillment only if credit check passes for all bill-to customers.
You don't need to do credit check during fulfillment.
You don't need to release credit check hold so fulfillment can continue. You can wait for the credit analyst to resolve the hold.

Submit Order with Hold on Lines that Failed Credit Check

Save the sales order in Processing status, place a hold on each order line that fails credit check, then send order lines that aren't on hold to fulfillment.

Use when.

Your sales orders sometimes include more than one value for Bill-to Customer on the order lines, and you must move the order to fulfillment even if credit check fails for some or all bill-to customers.

For example, if credit check for Bill To Customer x succeeds, and if credit check for Bill To Customer y fails, then Order Management can send order lines for customer x to order fulfillment, and place order lines for customer y on hold.

If order lines include only one Bill To Customer value, then Order Management uses the order total when it checks credit.
You don't revise attributes that affect credit check, or you might cancel the failed lines.
You must release credit check hold so fulfillment can continue, even if you must manually release the hold.

Frequent Implementation Questions

Question	Description
Why does Order Management place a credit check hold on the fulfillment line instead of on the order header when all fulfillment lines of the sales order fail credit check?	The orchestration process orchestrates and Order Management tracks each fulfillment line separately so they can optimize fulfillment. For example, if supply is available for lines x and y but not z, then it can reserve supply and move to the next orchestration process step for x and y. If Order Management placed the hold on the sales order instead of the fulfillment lines, then it would have to pause orchestration for all lines while it waits for supply to become available for z.
How can we allow fulfillment lines that are on credit check hold to proceed beyond scheduling?	Manually release the credit check hold. To make sure you don't ship a line that fails credit check, add another orchestration process step that does credit check. Add it after the scheduling step.
Assume credit check fails during fulfillment and the credit check step is in error. Can we manually get that line past the credit check step?	You must retry the step and it must pass credit check so the fulfillment line can move forward in the flow. You can't manually remove a hold because Order Management doesn't place a hold when credit check fails during fulfillment. It only places the line in error.
Can I set up my orchestration process so we don't do a credit check according to the type of sales order? For example, I create a task type named Skip Credit Check, and then add a condition to my orchestration process: `If task type equals Skip Credit Check, the release pause tasks that are on only because of credit check.`	You can't set up an orchestration process that skips credit check according to the type of sales order.