Credit Control - Credit Control Handling

Credit Control 

1. Credit limit for individual customer or customer group

2. Credit limit calculation to be according to Customer Group if Customer Group is recorded in Customer Card for the group credit limit

3. Credit limit calculation exclude the Sales Order which is Cancelled or Closed marked in SO Line Order Status

    Enhanced (JIRA289) - exclude the negative sales order line 

    The negative sales order line created for handle the return shipment case

    -  once the group shipment is posted then user use credit memo to reverse the invoice, user need to add the new sales order line for get the line to group shipment for create correct invoice.

    -  the negative sales order line is created for offset the new sales order line for prevent total sales amount increased due to the revision.

4. Credit limit calculation exclude if the payment terms is marked Skip Credit Limit Control

5. All credit limit calculation are base in LCY (CNA is use USD for LCY)

Approval Workflow

1. Multiple Approvers, document can be release if approved by either one approver.   Approval Request entries to be deleted for the approver who have not approve the order and the order have been approved.

2. No notification send for the approval request

3. Allow user to change the SO/PO order for non-amount impact after Released

4. Buffer for re-approval amount.  System will record last approved sales order amount for comparison
'- The % for compare the sales order amount can be config. in Sales & Receivable Setup

Customer Credit Balance Page 

Available Credit (Page 7177) - Consolidate all credit control information and shows the Customer Credit Balance breakdown 

   Information including: AR Balance, Export Order Balance (i.e. Sales Order), Invoice Balance (i.e. Group Shipment), Overdue amount

Credit Limit Approval

1. Flag for Request Approve added in sales header (this new field is not included in copy document)

          Summary of business requirement

          The logic for derive the flag for "Request Approve" as below:

(A) If Skip Credit Control = NO and Available Credit Limit or Group Available Credit Limit < = 0,  then Request Approval = Yes

else if Skip Credit Control = NO and Available Credit Limit or Group Available Credit Limit > 0, then Request Approval = No

(B) If Skip Credit Control = YES and Available Credit Limit or Group Available Credit Limit < = 0, then Request Approval = No

2. Field for "Approved Sales Amount" added in sales header  (this new field is not included in copy document)

    *Approved amount should be in local currency.

Case Scenario when Order Release 

     1.  If payment terms is skip credit control, order change to Released

     2.  If payment terms is not skip credit control, check the credit limit

                *if within credit limit => order change to Released

                *if excess credit limit => send approval for release.  Once approved and released, system update the Approved Sales Amount.

     3.  If order re-open and sales header or line is modified, then

              3.1 Check payment terms => if skip credit control then order change to Released 

              3.2 Check payment terms => if not skip credit control, compare the new sales amount and Approved Sales Amount 

                      *if within buffer => order change to Released

                     * if excess buffer => send approval for release.  Once approved and released, system update the Approved Sales Amount.

Credit Balance to be update when user change on sales order

Case Example