Related topics
Credit profiles define when your customers’ orders/order lines will be put on credit hold. You can, alternatively, choose to have the system reject lines that exceed the credit limit and create lost sales statistics.
You connect a credit profile to your customers on the A/R basic data panel (the Credit profile field) in the Business partner file. Depending on the credit control handling set up in the Function control file, during events in which a customer’s credit is evaluated, e.g. order line entry, the profile is used to determine whether the customer has exceeded their overdue day/amount threshold. During the evaluation process, the system compares the maximum overdue days/amount combination to the credit time axis containing the customer’s overdue A/R balance. If the overdue balance exceeds the thresholds, then the order is put on hold until the overdue A/R balance is resolved.
Options
Selection fields
- Profile
- This column lists the existing credit profiles.
- Description
- This column lists the descriptions of the credit profiles.
Work with credit profiles (GDMD19204)
This panel displays the parameters that form a credit profile. On this panel you can specify which parameters should be valid for the credit profile you are creating, or you can change an existing profile.
Function keys
- Credit profile
- Mandatory entry. Enter a code to identify the credit profile you are creating. For existing records, this field cannot be changed.
- Description
- Mandatory entry. Enter a description of the credit profile.
- Max overdue days
- Enter the maximum number of days allowed for an overdue A/R balance before the customer’s orders will be put on credit hold. This field works in combination with the maximum overdue amount set up in the Max overdue amount field, and is mandatory when using that field.
- Max overdue amount
- Enter, in system currency, the maximum amount allowed for an overdue A/R balance before the customer’s orders will be put on credit hold. This field works in combination with the maximum overdue days set up in the Max overdue days field, and is mandatory when using that field.
- Overdue credit stop
- Optional entry. Enter a code from Work with credit stop codes. The credit stop code works independent of other credit check parameters. This code is used when the credit check is performed via the Batch order hold routine within the credit control handling. See Overdue credit stop handling for more information.
This code can be used, e.g., to stop sales to a certain group of customers by assigning a credit profile to the applicable group. If you want to make an exception for one of these customers, then you would manually define another credit stop code directly on that customer on the A/R basic data panel in the Business partner file. The manually defined credit stop code is not considered by the Batch order hold program, only in the sales order and quotation routines.
- Base credit limit
- Enter the base credit limit in system currency. When base credit limit is exceeded (but not the credit limit) you will receive a warning message when, e.g., creating a new sales order. This field is also used in the calculation of the credit limit. See Credit overdraw percentage for further information.
- Credit overdraw %
- Optional. Enter the credit overdraw percentage that is afforded to a customer, before their order or order line will be put on credit hold or rejected. This percentage, if entered, is also used in the calculation of the credit limit. See Credit overdraw percentage for further information.
- Credit limit
- Displays the total credit amount that is afforded to a customer, before their order or order line will be put on credit hold. See Credit overdraw percentage for further information.
- Credit limit stop
- The setting in this field determines the outcome when a sales order exceeds the credit limit for the customer.
- If you set this field to NO a sales order will be placed on hold if the sales order exceeds the credit limit for the customer.
- If you set this field to YES, it will not be possible to create a sales order if the customer has exceeded the credit limit. It will also not be possible to create a sales order line that, when created, would mean that the customer’s credit limit was exceeded.
- Open order days
- Optional entry. Enter the number of days that should be taken into account for open sales orders, when customers’ credit balances are being checked. Note: This field should not be used if Reject lines is YES. Lines are rejected when the credit limit is exceeded, even if the dispatch date is beyond the open order days.
- Credit hold of lines
- Indicate if a credit check on line level should be implemented. If this field is set to YES, then the sales order can be partially held, i.e. a subset of lines will be held during order entry, if the credit limit is exceeded.
For example:
The result can be that the balance, after entry of the first lines on a sales order, is below credit limit. However, during order entry the credit limit is exceeded which means that lines will be held. You will be flagged that part of the lines are held (Held lines = YES) in the sales order header.Note: If this field and Reject lines below are set to NO, then the credit check/hold is done for the whole order. See Different credit hold scenarios for further information.
- Reject lines
- An alternative to holding an order or order line is to reject the line and create Lost sales statistics. Indicate in this field if you want to use this alternative of rejecting lines. Note: Reject is only valid for new lines. See Different credit hold scenarios for further information.
Note: This field should not be used in conjunction with Open order days. Lines are rejected when the credit limit is exceeded, even if the dispatch date is beyond the open order days.
- Rejected line reason
- Mandatory entry if Reject lines is set to YES. Enter the code, from the Lost sales reason table, for the rejected line. If an order line is rejected, this reason code will be updated to the Lost sales statistics together with the order line information.
Work with credit profiles, Copy (GDMD19205)
- Profile
- Displays the credit profile you selected to copy.
- New profile
- Enter the new credit profile that you are creating.