Credit Management
Overview of Current Settings
What we will cover……
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Credit Control Areas
Sales Documents
Delivery Documents
Item Categories
Processes
Risk Category Definitions
Risk Category Settings
Immediate Recommendations
2 Credit Control Areas
 F/S = Sales Areas:
 1000/20/10 Fender Squier Sales
 (Domestic, National Accts., Canada)
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1000/20/12
1000/20/13
1020/20/10
1030/20/13
Pro Audio Sales
Customer Service (parts)
International Sales
FMI Wholesale (SPA)
 SPEC = Sales Area:
 1000/20/11 Specialty Sales
Sales Documents in Production
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Not Checked:
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IN Inquiry
QT Quotation
AS Service Quotation
CR Credit Memo Request
KA Samples Pick-up (rtn from
DSM)
KB Samples Fill-up (to DSM)
RAS Repairs / Service
RE Return Authorization
ZDF Replacement Order
ZDS Drop Ship Order
ZEXP Expense Type Order
ZRE Return Authorization
ZWAR Warranty Replacement
ZWCR Warr. Credit Request
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Checked:
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BV Cash Sale
KE Samples Issue
KR Samples Returns
DR Debit Memo Request
PV Item Proposal
RK Invoice Correct. Req
SO Rush Order
OR Standard Order
TAV Standard Order (VMI)
Delivery Documents in Production
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Not Checked:
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BV Cash Sale
EL Inbound Deliv.
LR Returns Deliv.
ZF Outbound NCC
Checked:
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DIG Inbound deliv. Gds mvmnt
DOG Outb. Deliv.gds mvmnt
DTR Central Posting Change
EG Rough GR
HID Inbnd dlv. HU mvmnt
HOD Outb. Deliv. GI mvmnt
HTP Deliv. For post. chge
JF Outbound delivery IN
LB Delivery for subcon.
LD Outbound del. decentr
LF Outbound Delivery
LFKO Correction Delivery
LO Delivery w/o Ref.
LP Delivery from proj.
NCR Ret. StTranspOrd CC
NK Replen.Del.Consignmt
NKR Replen.Ret.Consignmt
NL Replenishment Dlv.
NLCC Replen. Cross-company
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NLR Ret.stock Trans. ord
RL Returns (pur.ord)
RLL Return del. to vendor
UL Del. for stock trans.
WID WMS Inbound Delivery
WIG Other WMS Inb. Dely
WMPP WM-PP delivery
WNL Replenishment WMS
WOD WMS Outbound Dely
WOG Other WMS Outb. Dely
WRD Cust. Returns WMS
WTR Decentr. Pstng chnge
Item Categories in Production
 Not Checked:
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BVN-Cash sales
G2N-Credit Request
G2W-Warranty Claim Labor
REN-Standard Item
TAC-Config.at Mat.Level
Z2N-Request
ZG2N-Warranty Rqst -parts
ZG2W-Warranty Rqst labor
 Checked:
 All Others
Processes
 Sales orders perform a dynamic credit
checked at time of entry.
 A nightly batch job will re-check all
credit blocked sales orders and
update the status appropriately.
 A second nightly batch job will check
sales orders that fall within the credit
horizon.
Risk Category Definitions
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A - Document Controlling
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B – Released documents are
still unchecked
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if order value changes by
10% a new check is carried
out
if an order is changed and it
has been 10 days since the
last credit check, a new check
is performed.
C – Credit Limit Seasonal
Factor
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special routine; 901 = Order
with Credit Card, 902 =
Delivery with Credit Card
Percentage allowed to exceed
the established credit limit.
D – Checks in financial
accounting/old A/R summary
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Check current payer – not all
payers assigned to the sold to
customer.
A
B
C
D
Risk Category Definitions
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E – Checks – (active only if checked)
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Static - Takes into account open order
and/or delivery/billing document
values.
Dynamic – Takes into account only
open or partially shipped sales order
documents if relevant for shipping
within the horizon. The system ignores
all open orders that are due for delivery
beyond the horizon specified. Current
setting is 1 Day.
Document Value - Indicates that the
system carries out a credit check based
on a maximum document value. The
sales order or delivery value may not
exceed the maximum value that you
specify in the adjacent field.
Critical Fields - The indicator controls
the critical field check. If the field is
selected, the system checks whether
critical fields have been changed.
Next Review Date - Indicates whether
the system carries out a credit check
based on the date of the next credit
review.
E
Risk Category Definitions
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E – Checks – (active only if checked)
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Open Items - Specifies whether
the system carries out a credit
check based on open items. This
type of credit check works in
conjunction with two values that you
specify in the adjacent fields:
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Maximum % of overdue items
in open items
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Number of days which the
open items are overdue
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Oldest Open Item - Indicates
whether the system carries out a
credit check based on the age of the
oldest open item. The oldest open
item must not be older than the
number of days specified.
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High Dunn Level - Indicates
whether the system carries out a
credit check based on the highest
dunning level.
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User 1, 2 and 3 - This field is
inactive in the standard system, but
can be used for a credit check you
define yourself.
E
Risk Category Settings
Risk Category Settings
Immediate Recommendations:
 Turn on Static check for deliveries
only - they are not included as part of
the Dynamic check.
 Increase Dynamic check horizon to
more than 1 day.