Oracle Order Management - Credit Checking Setup in Order Management

Credit Checking Setup in Order Management

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 Name of Credit Check Rule .
In the effective dates field enter today’s 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 name or Number and 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.

As per Note 365866.1, the conditions for the site level credit
check is as follows
After 11.5.10 CU2.
* If Credit Check not enabled(site level) => No Credit Check
* 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 => Use them
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
Enter the name of 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.

To release the credit check hold, go to Actions->Release Holds, enter a Reason,
and click on Release.