Dynamics 365 Finance Tech Talk: Credit Management

General Information

• Presenter: Mike Faulkner, Principal Program Manager, Microsoft
• Q&A Support: Pat Nolte, Senior Program Manager
• Moderator: AJ
• This session is recorded, available via registration link.
• Questions can be asked in the Q&A panel on the right side of the screen.

Overview of Credit Management

• Part of an IP licensing agreement with Sable DXC.
• The term used is Credit Management.
• Included in version 10.0.9 of Dynamics 365 Finance.

Main Features

1. Enabling Credit Management:

   • Go to Feature Management, find Credit Management, and enable it.

2. Credit and Collections Module:

   • Credit Management is part of this module.
   • New menus and additional functionality available.

3. Customer Credit Information:

   • Credit Management Menu: New menu at the top with several options.
   • Credit and Collections Tab: Expanded to include over 20 additional fields.
   • Key changes:
     • Unlimited Credit Limit checkbox.
     • Exclude from Credit Management checkbox.
     • Credit Management Group: Custom groups for blocking rules.
     • Total Credit Limit: Can be shown in customer’s currency, and includes insurance and guarantees.
     • Credit Limit Expiration Date & Temporary Credit Limit fields.
     • Memo Information: Review dates, eligible credit limits, risk scores based on scoring groups.

Customer Credit Groups

• Group multiple related customers.
• Assign a group credit limit.
• Hierarchy: Group limit first, then individual limits (including temporary credit limits).

Risk Scores and Scoring Groups

• Define scoring groups and values.
• Periodic tasks to update risk scores.
• Risk scores translate into risk groups used for setting automatic credit limits and blocking orders.

Adjustments and Workflow

• Credit Limit Adjustments:
  • Can create adjustments manually or through workflow.
  • Options for temporary limits and customer credit groups.
  • Generate lists of adjustments and post them.
• Automatic Credit Limits: Generate based on risk scores and assign limits accordingly.

Blocking Rules

• Nine Blocking Rules:

1. Rank Payment Terms: Blocks orders if payment terms are changed unfavorably.
2. Discount Terms: Similar to payment terms, but for discounts.
3. Overdue Days: Blocks based on overdue days.
4. Account Status: Blocks based on account statuses (e.g., hold, open).
5. Terms of Payment: Blocks based on specific payment terms (e.g., COD).
6. Credit Limit Expired: Defines grace periods for expired limits.
7. Overdue Amount: Combines overdue amount with credit limit usage.
8. Value of Sales Order: Blocks based on sales order value with exclusion rules.
9. Credit Limit Usage: Miscellaneous checks and warnings based on custom parameters.

Order Management

• New tab for Credit Management in sales orders.
• Orders get placed on hold and shown in a global list page for review.
• Option to reject or release orders (with/without posting).
• Evaluate for Release: Feature to auto-release orders once criteria are cleared, can be run manually or in batch.

Additional Features

• Grace Days: Control credit checks at multiple order stages (e.g., confirmation, picking).
• Customer Entities: Extended and included in customer V3.
• Documentation and Resources: Learn more links and detailed documentation available.
• Enterprise Credit Management Transition: Sable DXC provides support for transition to the new system.

Q&A Highlights

• Credit management applies primarily to sales orders, with limited application to free text invoices (no support for project invoices).
• Configuration is per legal entity, but customer credit groups and hold lists are cross-company.
• Temporary credit limits must be managed through the process; expiration dates can be mandatory based on configuration.
• Blocking rules focus on sales order processes and do not extend to payment journals.

Conclusion

• Thank you to the presenters Mike Faulkner and Pat Nolte.
• Reminder to fill out the feedback survey.
• Presentation recording and slides will be available within five business days.
• For more questions, follow-up through email or the public Yammer group "Credit Management".