Credit Checking Setup in Order Management [ID 744642.

1] Modified 09-DEC-2010 In this Document Purpose Scope and Application Credit Checking Setup in Order Management Setup Steps Test flow Steps References Type BULLETIN Status PUBLISHED

Applies to:
Oracle Order Management - Version: 11.5.9 to 12.0.6 - Release: 11.5 to 12.0 Information in this document applies to any platform.

Purpose
The purpose of this bulletin is to provide Oracle Customers with a good basic understanding of Credit Checking in Order Management setup.

Scope and Application

This document helps Support Engineers and Oracle Customers to understand basic credit check concepts within Order Management. Screen shots in this note are from an Internal 11.5.10 CU2 instance. Scenario: In this test flow, we will setup a credit limit of $5000 for the bill-to-site for an existing customer A. C. Networks. We will verify in this test case that the order goes on credit check hold when the order amount surpasses the credit limit. * This test flow assumes that you are working in a Vision environment. * The Setup steps include the relevant setup needed to create credit checking test case. Some of these steps only require viewing the setup that already exists in the Vision environment. If you have already gone through the Setup steps once, you can go directly to the Test flow Steps to perform your test case.

Credit Checking Setup in Order Management Setup Steps

Login User : OPERATIONS / WELCOME Responsibility : Order Management Super User, Vision Operations (USA)

In order to trigger automatic Credit checking on sales orders it is necessary that the credit checking is enabled for the order type, customer profile and payment terms associated with the transaction. Credit check set up involves the following setup steps Step1:Credit Check Rules Setup Step2:Customer Profiles Setup Step3:Payment Terms Setup Step4:Order Types Setup If any one of order type, customer profile and payment terms does not have credit checking enabled, the sales order will not be credit checked . Sales orders that pass credit check at all the three points are allowed to progress normally. Those that fail will have credit check failure hold placed on either the order header or order lines. Step 1 : Credit Check Rules Setup (N) Setup->Rules->Credit In the rules window enter CoE Credit Check Rule . In the effective dates field enter todays date(optional) as the starting date and leave the end date as blank. In the credit check level drop down list, Select Sales order. In the Credit hold level drop down list select the Sales order option. Choose the conversion type as corporate. Accept all other defaults and save your rule and close the window.

Step 2 : Customer Profiles Setup (N) Customer->Standard

Enter the customer number as 1143 and click on find button

Click on OK to open the customer. In the Addresses tab, select the address for the bill to site that you want to enable credit checking and click on the Open button. The conditions for the site level credit check is as follows After 11.5.10 CU2. * If Credit Check not enabled(site level) => Go for Customer level * If Credit Check is enabled and both credit limit and order credit limit are NULL/BLANK => Go for Customer level

* If Credit Check is enabled and either credit limit or order credit limit is NOT NULL => i.e If site level profile is created, it follows the hierarchy mentioned in the Note 365866.1 In (T) Profile: Transaction ensure the Credit Check box is checked

In (T) Profile: Amounts, '''select the currency USD''' and change the order credit limit to 5000

Step 3 :Payment Terms Setup (N) Setup->Orders->Payment Terms Query for the Payment Term 30 Net and ensure that the credit check check box is selected. Save your work and exit the form.

Step 4 :Order Types Setup (N) Setup->Transaction Types->Define Query for the Transaction Type Mixed and once the record is retrieved choose the credit check rule "CoE Credit Check Rule" created in the previous step in the credit check rule region in the ordering field. This indicates that when the order is booked, the credit check rule will be applied and when the order amount exceeds the credit limit then a hold will be applied.Save your work and close the window.

Test flow Steps

(N) Order Returns-> Sales Order Enter the customer number as 1143 and ensure that the order type is Mixed. Also ensure the Bill To Location is the address for which you have set up credit checking.

Click on the others tab and ensure the Payment Terms is selected as "30 Net".

Click on the Line Items tab and enter the line details with order qty as 4 and ensure that the total value exceeds $ 5000.Save the transaction

Click on Book Order Button. The pop up window appears showing that a credit hold has been applied based on the site profile.

Re query the order and click on the actions button to choose Additional Order Information and it shows that a credit hold has been applied based on the site level credit profile.

To release the credit check hold, go to Actions->Release Holds, enter a Reason, and click on Release. -- This completes the steps for the Credit Checking test flow ***Checked for relevance on 13-JUL-2010***

References
NOTE:365866.1 - Credit Checking Limits Hierarchy NOTE:436483.1 - ORDER MANAGEMENT SUITE - INVOICING LIBRARY Attachments

Additional_info_on_order.jpg (86.57 KB) Credit_check_applied.jpg (109.51 KB) Customer_details.jpg (59.18 KB) Order_line.jpg (92.05 KB) Order_type.jpg (105.69 KB) Payment_term_on_so.jpg (81.54 KB) Payment_terms.jpg (66.66 KB) Sales_order1.jpg (80.63 KB) Site_level_amount.jpg (91.86 KB)

Site_level_credit_check.jpg (103.12 KB) credit rule1 (50.63 KB) customer_find.jpg (72.67 KB) Related

Products

Oracle E-Business Suite > Order Management > Order Management > Oracle Order Management

Keywords CREDIT CHECK FAILURE; PAYMENT TERMS; CREDIT CHECKING; CUSTOMER PROFILE; RELEASE HOLDS; PROFILE; CREDIT HOLD Back to top
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