Dynamics 365 Credit Management Feature Overview

Jul 2, 2024

Dynamics 365 Credit Management Feature

Overview

  • Introduced: 2020 Release Wave 1
  • Main Feature: Automatically calculate credit limits for customers based on predefined rules

Enabling the Feature

  • Navigate to Feature Management Workspace
  • Search for "Credit"
  • Ensure feature is enabled (e.g., enabled on March 24th in the demo)

Accessing Credit and Collections Module

  • Navigate to Modules > Credit and Collections
  • New setup items include:
    • Risks
    • Credit Management Setup
    • Credit and Collections Parameters

Setup Steps

Disable Manual Editing

  • Go to Credit Tab > Credit Limits
  • Disable Allow Manual Editing of Credit Limits

Define Ranking Rules

  1. Risk Classification
    • Define classifications (e.g., Low: 0-35, Medium: 36-60, High: 61-100)
    • Customers fall into these based on points
  2. Scoring Groups
    • Define groups such as Account and Growth
    • Account Status (e.g., Small, Medium, Large) assigns points
    • Growth Index is user-defined and assigns points

Assign Values to Customers

  • Navigate to Customer Table
  • Select a customer, go to Credit Management > Risk Score
  • Ensure Account Status and Growth Index are defined
  • Update using Periodic Job under Credit Management

Enter Growth Index Manually

  • Manually enter Growth Index in Risk Score
  • Reflects in ranking points (e.g., 0-30: 10 points, 35-70: 30 points)

Inputs for Calculating Rank

  • Account Status, Default Country Address, Credit Management Group
  • Customer Since, Average Payment Days, DSO, Average Balance, etc.

Defining Automatic Credit Limits

  • Navigation: Credit and Collections > Automatic Credit Limits
  • Define records for Low, Medium, High-risk groups
  • E.g., Account Status in Low group results in specific credit limits

Demonstration

  • Example with customers #21, #22, and #23
  • Customer #21: Account (30 points) + Growth (50 points) = 80
  • Customer #22: Account (10 points) + Growth (30 points) = 40
  • Customer #23: Account (30 points) + Growth (0 points) = 30

Applying New Credit Limits

  • Navigate to Credit Limit Adjustments
  • Generate Automatic Credit Limits
  • Specific credit limits suggested based on rankings
  • Save sequences and review calculated credit limits
  • Post updated credit limits to customer records

Summary

  • New feature provides automated calculations for customer credit limits
  • Ranking, scoring groups, growth index, and manual adjustments
  • Demonstrated configurational steps and examples

Next Steps

  • Future video to cover order holds and defining associated rules

Note: The video includes detailed steps and several examples for better understanding.