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MSDyn365FO Credit Management, Part 3 – What’s new on the Customer screen?

Credit Management for D365FO

Last week, we reviewed the Dynamics 365 Finance and Operations’ Credit Management’s new parameters. Since the key to credit management is to assess the risk of a customer, we’re going to take a look at the new customer screen and features for MSD365FO!

As D365F&O’s new Credit Management is a hefty topic, this blog is Part 3 of a multi-part series detailing the new Credit Management functionality and features in D365 FO. Find last week’s blog here!

Customer Screen

To get to the customer screen go to Credit and collections > Customers > All customers.

Customer screen

On the Customer form, there’s a new Credit management menu option, a new Credit statistics fact box, and on the Credit and collections fast tab over 20 new credit-related fields.

Credit and collections

MSDyn365FOCustomer Fields

Now, let’s start by looking at the fields on the customer.  This is a list of all the fields on the Credit and collections fast tab (not just the new fields) and an explanation of each.

  • Credit rating – This is a free text user field that can be used to indicate the customer’s credit rating (i.e. Excellent, Good, Bad, etc.). This is an optional field.
  • Mandatory credit limit – In the Credit and collections parameters form, a credit limit type is typically selected. However, if the credit limit type is set to None, you must also select the Mandatory credit limit checkbox in the Customers form in order to check the customer’s credit limit against the customer’s balance. So, if the parameters are set to None, and you want credit to be checked on this customer, set this field to Yes.  Otherwise, set this field to No.
  • Unlimited credit limit – If the customer has an unlimited credit limit, set this field to Yes (in previous releases, 0.00 was used to mean unlimited, now there’s a yes/no field). Otherwise, set this field to No.
  • Exclude from credit management – If you want to exclude this customer from the credit management process, set this field to Yes. Otherwise, set this field to No. This flag gives you the ability to setup the credit management fields and then exclude a one-off customer from the credit management rules.
  • Credit management group – This field allows you to group customers together and can be used in the blocking rules. This is an optional field.

Total Credit Limit

  • Credit limit – This is the customer’s credit limit (this is the same field as in previous releases).
  • Credit limit in customer’s currency – This is the customer’s credit limit in the customer’s currency. The system will auto-calculate the amount based on the currency conversion rate setup.
  • Temporary credit limit – The Temporary credit limit will be used instead of the Credit limit amount based on the start and ending date entered on the Temporary credit limit Temporary credit limits are often used when you’re in the process of determining the customer’s credit limit.

For example, if you have a new customer that wants to place an order today, but you haven’t yet determined their true credit limit, you can give them a Temporary credit limit so that orders can be processed.  Temporary credit limits are also used if a customer has a credit limit but they’re not paying on time or the risk with the customer has increased.  In that case, you may create a Temporary credit limit to reduce the customer’s credit limit for a set amount of time until you can re-assess the risk of the customer.

Note 1: The Temporary credit limit field is not displayed on the Credit and collections fast tab unless a Temporary credit limit has been created for that customer. So, if you don’t see the Temporary credit limit field on the screen, you now know why.

Note 2: Temporary credit limits can be view on the customer record by clicking on Credit management > Temporary credit limits, but they can only be added/updated from the Credit limit adjustments. Credit limit adjustments can be accessed from the customer record.  Credit limit adjustments can also be accessed from the main menu. Credit limit adjustments will be discussed in another section.

Temporary credit limitsTemporary credit limits 2

  • Insurance and guarantees – This is the amount you’ve insured for this customer… in other words, this is the amount you’ll get paid if something happens to your goods. This amount can be added (either fully or partially) to the Credit limit amount to increase the customer’s credit limit.

An example of when you may use Insurance and guarantees would be if you bought goods for a customer and the goods were destroyed in transit, if you had insurance, the insurance would pay you for the goods lost.

    • To enter the Insurance and guarantees, click on Credit management menu option at the top of the screen > click Insurance and guarantees

Note: Before adding Insurance and guarantees, go to Credit and collections > Setup > Credit management setup > Insurance and guarantees to setup the Insurance and guarantees types and Coverage types or they can be added on-the-fly using View Details.

Insurance and guarantees

    • Insurance or guarantee identifier – Select either Insurance or Guarantee.
    • Insurance/Guarantee Type – Select the type of insurance or guarantee. This is a user-defined list.
    • Insurer/Guarantor – Select the vendor record you purchased the insurance or guarantee from. This is an optional field.
    • Coverage Type – Select the type of coverage (i.e. Insurance Policy). This is a user-defined list. This is an optional field.
    • Identification – Enter the policy number. This is a 20 alphanumeric free-text field. This is an optional field.
    • Effective – Enter the policy start date. This is an optional field.
    • Expiration – Enter the policy end date. This is an optional field.
    • Value – Enter the value of the policy.
    • Currency – Enter the currency of the policy.
    • Increase credit limit percent – Enter the percent that should be added to the customer’s Credit limit.

For example, if all the insured/guaranteed amount should be added to the customer’s credit limit, enter 100.00.  If only 50% of the insured/guaranteed amount should be added to the customer’s credit limit, enter 50.00.

    • Included in exposure – If the Increase credit limit percent calculation should be included in the customer’s Credit limit, place a checkmark in the Increase credit limit percent

Increase credit limit

  • Total credit limit – This is the customer’s total amount of credit. This is a calculated field.
  • Credit limit expiration date – This is the date the credit limit will expire and can be used in the blocking rules.

Note: In Credit and collections parameters > Credit, if the Ignore credit limit expired rule when the blank field is set to Yes, then, you can leave the Credit limit expiration date blank and the process will ignore the field.  If the Ignore credit limit expired rule when the blank field is set to No, then, you need to populate the Credit limit expiration date because if you don’t the blocking rules will assume that the credit limit has expired.

Credit limit expiration date

 

  • Credit limit change date – This is a system-maintained date and is updated each time the credit limit amount is changed.

Credit Review

  • Last review date – Enter the last date you reviewed the customer’s credit. This is an optional field.
  • Next scheduled review date – Enter the next date you need to review the customer’s credit. This is an optional field.

Eligible Credit Limit

  • Eligible credit limit – Enter the amount of credit the customer is eligible for. This is an optional field.

For example, the customer may be eligible for a $2M credit limit but due to other factors, you may decide to give them a lower credit limit.  This field gives you a place to put the amount the customer is eligible for as a point of reference.

  • Eligible credit limit currency – Enter the currency of the eligible credit limit. This is an optional field.
  • Eligible credit limit change date – This is a system-maintained date and is updated each time the eligible credit limit amount is changed.

Status

Note: Before adding Account status and Account status reason, go to Credit and collections > Setup > Credit management setup > Account Statuses to set up the Account status and Credit management reasons to setup Account status reason or they can be added on-the-fly using View Details.

  • Account status – This allows you to add a status to the customer. This is only used in the blocking rules. It does not actually put the customer on hold.  The Invoicing and deliver on field is what actually controls the customer’s hold.  This is an optional field.
    • When you set up the Account status, the default Invoice and delivery on hold selection is also set up, which determines if the customer should be on hold and what type of hold. . .but it is just a default. On the customer record, you can actually change the Invoice and delivery on to be different from the default.
      • All – Customer is blocked with posting all transaction types, including free text invoices, customer invoices, and payments.
      • No – Customer is not blocked with any transactions.
      • Invoice – Customer is blocked with posting picking lists, packing slips, invoices, including free text invoices.

Invoice

    • Account status reason – Select the reason why the Account status option was selected. This is an optional field.
      • It’s important to notice that only the Credit management reasons with a Reason type = Status, show in the Account status reason drop-down.

account status reason

  • With collection agency – If the customer has been turned over to a collection agency set this file to
  • Title held – If the customer has a title and if you’re holding the customer’s title, set to Yes.

Risk

  • Year business established – Enter the date the customer’s business was started. This is an optional field.
  • Customer since – Enter the date the customer first started doing business with you. This is an optional field.

Notes

  • Note – This is a free-form text box. This is an optional field.

Collections

  • Invoicing and delivery on hold – This field is what controls the customer’s hold. The options are:
    • No– Customer is not blocked with any transactions.
    • Invoice– Customer is blocked with posting picking lists, packing slips, invoices, including free text invoices.
    • All– Customer is blocked with posting all transaction types, including free text invoices, customer invoices, and payments.
    • Payment– Invalid option for the customer.
    • Requisition– Invalid option for the customer.
    • Never– Customer is never put on hold.
  • Collections contact – Select the person in the customer organization who works with your collection’s agent. This person is used as the default contact on the Collections page, and email messages are sent to him or her. If a collections contact isn’t specified for a customer, the primary contact for the customer is used. If a primary contact isn’t specified, email messages are sent to the first address that is listed on the Contacts

Note: To add a Collections contact, from the customer menu, click Customer > Accounts > Contacts > Add contacts.

collections contact

  • Default write-off reason – Set up the default reason code that is used when transactions are written off on the Collections You can change the code during the write-off process.
  • Date – This is the last date a collection letter journal was posted.
  • Valid collection letter code – Select the valid collection letter code for the collection letter that you want to use the next time that a collection letter is generated.

 

This blog is the next part of a multi-part blog series detailing the new Credit Management functionality in Dynamics 365 for Finance and Operations.  Look for additional releases in this series in the coming weeks.

Looking for the other posts?

MSDyn365FO Credit Management, Overview – Credit Management Overview
MSDyn365FO Credit Management, Part 1 – Is Credit Management enabled in your environment?
MSDyn365FO Credit Management, Part 1 – Are there any new security roles for Credit Management?
MSDyn365FO Credit Management, Part 1 – Are there any new workflows available?
MSDyn365FO Credit Management, Part 2 – What are the new parameters?

 

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