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MSDyn365FO Credit Management, Part 2 – What are the new parameters?

Credit Management for D365FO

Last week, we reviewed how to know if Dynamics 365 Finance and Operations’ new Credit Management feature is enabled in your environment, in addition to the new security and workflow features. In this week’s blog, we’ll be providing an overview of the new parameters for MSD365FO’s Credit Management.

As D365F&O’s new Credit Management is a hefty topic, this blog is Part 2 of a multi-part series detailing the new Credit Management functionality and features in D365FO. Find last week’s blog here!

What are the new parameters?

In Credit and collections > Setup > Credit and collections parameters, there’s a new section called Credit. Here you’ll see parameters for Credit holds, Credit management checkpoint, Credit management statistics, and Credit limits. The parameters allow you to turn on/off certain fields and functions with Credit management.  This is also where you can set up the timeframe for the statistic fields and default reason codes.

Credit and collections set up

Credit and collections parameters

Credit holds

Allow edit of sales order value after order hold is released – If this is set to No, then if the Sales Order is released from hold and the Sales Order is then edited (doesn’t matter if the value goes up or down), and the system will put the Sales Order on hold again.  If this is set to Yes, then if the Sales Order is released from hold and then the Sales Order is edited, the system will not put the Sales Order on hold again.

Reason for canceled orders – When a Sales Orders is canceled, this is the reason default code that is assigned to the Sales Order.

Check customer credit group credit limit – For Customer credit groups to be used in the credit logic, set this field to Yes. If the credit logic is to ignore the Customer credit groups, set this field to No.

Check credit limit when payment terms are increased – If this is set to Yes, then with the customer’s payment terms are changed on the order, the credit rule will be triggered… and if the new payment terms have a different rank than the customer’s default payment terms then the system will do a credit check on the order.  If this field is set to No, then the rule is ignored.

Check credit limit when a settlement discount is increased – If this is set to Yes, then with the customer’s Cash discount terms are changed on the order, the credit rule will be triggered. . .and if the new Cash discount term has a different rank than the customer’s default Cash discount terms then the system will do a credit check on the order.  If this field is set to No, then the rule is ignored.

Reason for releasing modified orders – When a Sales Orders is modified, this is the default reason coded that is assigned to the Sales Order.

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

Remove blocked load lines – If you have a Sales Order is on a load, if that Sales Order goes on hold if this field is set to Yes, the hold process will remove the Sales Order from the load. If this field is set to No, the Sales Order will remain in the load.

Reason to release automatically – When the process that auto-releases Sales Orders from hold runs, this is the reason coded that is assigned to the Sales Order. Note: The process that re-evaluates the customer’s credit rules and determines if the order can be auto-released from hold is the Evaluate for Release process in All credit holds list and All credit holds due for review.

Automatically release – When the auto-release process runs, if a Sales Order is released, if you want to post whatever document put the Sales Order on hold, set this field to With posting.  To only release the order and manually post the document, set this field to Without posting.  Note: The process that re-evaluates the customer’s credit rules and determines if the order can be auto released from hold is the Evaluate for Release process in All credit holds list and All credit holds due for review.

For example, if this field is set to With posting, then, if the posting of the Packing Slip put the Sales Order on hold but in the meantime, the customer has made a payment and their credit allows orders to process when the auto-release process runs, the system will release the Sales Order from hold and post the Packing Slip.

Credit holds

Credit management checkpoint

Credit management checkpoints tell the system when to execute the credit check logic.

Based on the setup below, we’re telling the system to do a credit check when the Sales Order Confirmation is posted, when a Proforma Confirmation is created, when posting the Packing list, Release to warehouse, and when creating a Proforma Invoice.  By population the Grace days we’re telling the system to add that number of days to wait before doing another credit check on that Sales Order.

In other words, we have 10 Grace days setup for the Confirmation, which means that once the Confirmation is posted we have 10 days to get the order picked, packed, shipped, invoiced before the credit check will be triggered again.  If we don’t have any Grace days the credit will be checked at each point that we have a checkmark.

Credit management checkpoint

Credit management statistics

The Credit management statistics is where you enter the timeframes to be included in the statistical calculations.

Credit management statistics

Credit limits

Credit limit exchange rate type – Select the Exchange rate type that is to be used when converting currency. This field is the same as previous versions.

Allow manual editing of credit limits – If you want to be able to manually edit the customer’s credit limit on the customer record, set this field to Yes.  If you want to require the user to only use Credit limit adjustments to change credit limits (meaning you cannot manually edit the credit limit on a customer), set this field to No. This is a new field.

Credit limit type – This tells the system if credit should be checked and if credit should be checked which documents should be included in the credit check calculation. This field is the same as previous versions.

  • None– Do not check credit limits. You can override this option for a specific customer by selecting the Mandatory credit limit checkbox in the Customers If you do this, the credit limit is checked against the customer balance.
  • Balance– The credit limit is checked against the customer balance.
  • Balance + packing slip or product receipt– The credit limit is checked against the customer balance and deliveries.
  • Balance+All– The credit limit is checked against the customer balance, deliveries, and open orders.

Check credit limit on sales order – Set this field to Yes, if the credit should be checked on Sales Orders.  Set this field to No, if credit should not be checked on Sales Orders. This field is the same as previous versions.

Check credit limit on free text invoice – Set this field to Yes, if the credit should be checked on Free Text Invoices.  Set this field to No, if credit should not be checked on Free Text Invoices. This field is the same as previous versions.

Message when exceeding credit limit – This tells the system what message to display if the customer’s credit has been exceeded. This field is the same as previous versions.

  • Error– An error message is displayed, and the order cannot be processed.
  • Warning– A warning message is displayed, but the process can continue.
  • Review – This is related to Retail/Call Center.

Credit limits

 

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?

 

 

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