Transcript for:
Lecture on Credit Management

[Music] foreign so today again we're going to be talking about credit management to let you know a little bit about myself I've been working in the Dynamics space since 2009 my primary focus is on finance costly manufacturing and supply chain I've also done stuff with project management accounting and asset management fixed assets and and other things as well I've had the privilege of working with over 90 customers around the world um in 14 different countries and my customer base has been quite diverse I've done a lot of stuff in apparel and textiles and agricultural Pharmaceuticals retail medical devices I do have a blog site called intra Cloud Dynamics and I do put out a tip of the day for Dynamics financing supply chain so if you could subscribe I would appreciate it and then you can we can connect and start sharing some information I'm also very active on LinkedIn and you can find me there so feel free to connect and follow me on LinkedIn so what I want to talk about is the fly so when you're looking at your projects and you're doing different things why why would your client want to implement credit management what is that one reason or what are the reasons why you would want to do that so the primary reason is because is to mitigate risk it's all about risk so when you're looking at Credit Management as we go through these different components associated with credit management we're going to be talking about risk how can a client mitigate the risk to Bringing on a new customer so our business objective today again is to demonstrate the credit management portion of credit collection so as you know in d365 there's a module called credit and collections we're going to be focusing on the credit management portion of that and maybe it's on future day we'll talk about the collections piece but today we'll be talking about credit management and how to mitigate risk so inside of credit management there's a number of things that allows you to do to mitigate risk so when you want to talk about risk I'm talking about if I'm a company and I'm going to bring on a new customer I don't want to just say okay everyone has a million dollar credit limit right there's certain criteria that we want to take into consideration to say hey I'm going I want to bring on this new customer but what kind of credit do they have what should their credit limits be can I do they have insurance or can is there do they or do they maybe have they have a parent so there could be like a parent child relationship maybe it's a customer that has lots of different companies underneath them so you may want to say hey I don't want to just look at the credit limit associated with that one company I would look at the credit limit for the group of cup of companies because again if one company is in filing bankruptcy right but the other companies are doing okay well there's still a certain level of risk associated with that so you can actually do credit limits based upon a group of customers which is is really helpful there's also this concept in credit management called risk scores risk scores we're going to get into pretty deep here in just a little bit so kind of hold on to the carrot there um and tell you a bit about that a little bit but you'll they're pretty pretty cool along with risk scores we have risk groups and again we'll get into risk groups in good detail here in a bit as well so you do all this set up right you set up blocking rules you set up group scores you set up credit limits and you do all these things so that you can put sales orders on hold so that way when a customer puts gives you a sales order you're like hey do I want to accept this sales order or maybe it needs to go through a special credit check so you're doing all this configuration and the setup so that you can control what cell disorders actually get processed pickpack shipped and invoiced and we'll talk about the sales order hold process here as well um there's also a book I mentioned before there's a whole credit collections piece um which kind of plays into the credit management which we're not going to get into but the whole point of it is you want to try to figure out what is collectively my risk with this customer so all the pieces we're going to be going through today are talking about the tools needed to evaluate the risk around giving a client um credit limits and being allowing them to process sales orders so there are two key things we're going to talk about today and these are again wrapped around that risk piece is risk scores and blocking rules um so I'm going to get into these in in great detail all right so what is a risk score so risk scores are user defined and there's lots of different things that people measure so on projects that I worked on you may want to say hey if a customer has only been in business for six months right but probably pretty risky but if they've been in business for 30 years then maybe they're not as risky because they have built up credit they have history um so one of the things you may want to measure when you're doing a risk score is how many years have they been in business what's the nature of their business are they in gold or are they in Cotton are they in what are they in what industry are they in because depending on the industry is going to have a different level of risk associated with it you may want to say what type of company is it you know is it a partnership is it a proprietorship is it you know what type of company is it because again and these are all user-defined these are just examples again it'll help you start to determine and measure like how risky this customer is how many employees do they have you know that may be another thing if they had one employee and they're wanting a million dollar credit limit well that's pretty risky right but if they have a thousand employees and they're a five billion dollar company well the risk is probably less in that case um like you're done in Bradstreet your DMV rating you know so again these are just some examples um of what risk scores could look like or things you may want to measure when you're considering giving a client a credit limit so we're going to go into d365 now and we're going to show you some the scores the customers and some different things so let's hop out of here so I'm going to stop sharing um the Powerpoints and I'm going to pull up d365. okay and the first thing I'm going to talk about is the parameters table and I'm going to take you there first not because it's super exciting but because there's a lot of flags there that can drift drastically impact um how the system is going to perform so inside of credit collections there's this credit section and there's this whole piece in here about credit holes now some of the key ones I want to kind of point out are let's see um this one right here allows sales order value after the order has been released so this one is important because if you don't set this flag or if you do set this flag you're going to get different behaviors when we do the sales order so let me explain to you what this does if this is said to no um if the sales order is released from hold and then the sales order is edited so if you have a sales order and you edit it it doesn't matter if the value of the sales order goes up or down the system is going to put the put the sales order on hold again all right if it's set to yes then if the sales order is released from the hold the sales order edit doesn't matter it's not going to put the sales order on hold again so if you put a sales order in for a dollar right and it's not on credit hold and then someone goes back and edits it and makes it you know ten thousand dollars well if this field is set to yes then it's going to say wait a minute I already checked you I'm not going to check do another credit check so this particular field is really important um another one I want to call out is down here um so there's one about the expiring so this one's important so ignore the credit limit expired when expert expiration date is blank so I want to talk about that one just a little bit so if this is such a yes then you can leave the credit limit expiration date blank on the customer record and the process will ignore the field if this field is set to no then you need to populate the credit limit expiration date on the customer record because if you don't the blocking rules will assume the credit limit has expired so again I'm kind of pulling these out um because there are some things that will behave differently when you're actually going through the sales order process or putting information on the correct customer record if they're not set so be aware that they're here something that's a little bit more important that I wanted to talk about was down here with um credit checks so inside of d365 as you know there's lots of posting opportunities you can post a confirmation you can post a picking list you can release the warehouse you can list the post a packing slip you can post some invoice so depending on how you have this configured will determine when the credit checks and the blocking rules are executed on the sales order so in other words um it also you have this column here called Grace days so you have the posting flag you have gray stays and you have this pro forma and then you have the number of Grace days so gray stays tells the system says hey how many days do I need to oh can I wait before I do another credit check so just as an example if we have a Grace day set to 10 for the confirmation that means that once a confirmation is posted we have 10 days to get the order pick packed and shipped and invoice before the credit check will be triggered again so as you can see here I have confirmation and packing slip posted well if I do it within 10 days it's not going to do another credit check on that packing slip if we don't have any Grace days then a credit check will be at each point so the gray stays are really helpful so it's again something you want to pay attention to and then one other thing here I want to point out is around the statistics these don't mean a lot to you now but when we get to the customer record um it'll be helpful to know that this is where you actually set the statistic values that's used on the customer record so I'll point that out in just a bit but just be aware that these are here all right um the information out here under credit limits is what you typically would have in in d365 prior to using this so you have your credit limit value you know non-balance balance and packing packing slip and balance plus all right so again I don't want to belabor the whole parameters piece but just be aware that it is here and it does impact how the system behaves on the customer record as well as a sales order right so now let's hop over here to customers and I'm going to create a new customer and we're going to call the customer d365. [Music] all right and we're going to go through the different pieces here again this is just normal setup for any customer nothing fancy here all right on the customer record there is a section for credit collections we have a slider bar I don't think you can see my whole screen and I don't know why there's stuff over here on the right hand side oh there's a slider bar alrighty there we go perfect um so in this credit collection section feel called credit rating um the credit rating is just a free text field a user field it doesn't do anything you can say that it's good or bad or excellent or it's just a descriptor it doesn't actually do anything you have the mandatory credit limit again in the credit collections parameters form um a credit type limit type is typically selected however if the credit limit is that To None then you would have to set up this to mandatory credit limit okay if you wanted the customer have unlimited credit then you could let's do this slider lots of times with companies they'll have like their Golden Child of sorts of customers and they're like hey they don't have they have unlimited credit whatever they want to buy they can buy and that's when you would do that slider and then you have this one I hear called exclude from credit management so exclude from credit management says I don't want this customer to be included in this credit management process their sales orders are not going to go on hold I don't care about what the blocking rules are I don't care about score groups I don't care any about that thing about that so that allows you to hand pick um which ones you can include or exclude from the credit management process all right then we have a customer management group this field allows you to group customers together and be used in a blocking rule this Credit Management Group is not the same as the customer credit group so there's two different groups there's a credit management group and there's a customer credit group the customer management group is just a user-defined field if I right click here and say view details I can set up whatever groups I want there's no really logic to it it's just a way of grouping customers together so that you can then create a rule around it so we'll get into that a little bit more not too much more but a little bit more and then we have the credit limit this is a customer's credit limit this is the same value that you had in other versions of d365 prior to them introducing credit collections in 2009 or 2019 rather um and then you have this customer credit in their in the customer's currency so let's just say you know this is ten thousand dollars you'll notice that I'm also using US dollars so this is US dollars if the customer had um a different currency say Euros then the system would look at the currency conversion table and determine what that would be and and show you that in your rows all right now there's not a there's should be or could be a field on here called temporary credit limits um so you'll notice that you do not see it on the screen and you do not see it on the screen until you've actually created a temporary credit limit so let's talk about this for a minute so when would you use a temporary credit limit if you have a new customer that wants to place an order but you haven't yet determined their true credit limit so definitely speaking Google build someone yeah I think you can okay okay very good thank you um so a temporary credit limit is let's say somebody you know your sales guy calls you up and says hey I've got this big order we can put it in today and then your credit collections department is like wait a minute we haven't had time to check out their credit well you may say well they just want to place an order for five thousand dollars right it's very low risk let's just let them do it well inside the system you have the ability to do temporary credit limits um another example of when you may want to do a temporary credit limit is let's say you have a customer they got a big government contract right so they got a government contract for 10 million dollars and but in the contract's good for a year that would be a good reason to set up a temporary credit limit for that year time period because you don't want it to be their permanent credit limit it's just for a given time but again you'll notice you don't see a field here right you don't see temporary credit limit so what you do to get the field to show up and actually use it you go up here under credit management and you say credit limit adjustments and then you're going to say new which I already created a new record for me and then we're going to say temporary credit limit and you can give it a description if you want you go to lines and then here I can say that it's our d365. and we can say that it's going to be from a certain date and to a certain date and then we can give it a new credit limit so let's just say that this is fifty thousand dollars oh here's the date so we can say from day so we're gonna say that it's from monsters say today and it's going to expire you know the end of July and then we're gonna save this and then we have the ability to post and now when we go back and if we're going to refresh my screen here we should have a temporary credit limit so now you can see we have a temporary credit limit of five hundred thousand dollars so the temporary credit limit is going to take precedence over or to our normal um credit limit um you also have insurance and guarantees you'll notice this is a great Outfield again sometimes a customer will say I want to I'm going to create had Insurance because I'm going to have product shipped from China to somewhere else and I'm going to get insurance on it so what you can do is you can go up here to insurance and guarantees and say new and you can either say it's a guarantee or insurance right so we're just going to say it's insurance and we can pick our vendor and we can say that this is an insurance policy and it's effective from the state range and it's going to be a value of you know six hundred thousand dollars and here I have the option of saying do I want this to increase my credit limit so if I say yeah I want to increase my credit limit I want to use all of it towards my credit limit so all six hundred thousand people get added to my credit limit that I put 100 here if I just want half of it to go there I put 50 percent all right and you'll notice there's not a post button here you just save it and I'll refresh my screen and let's see here so let me get back in there Insurance Maybe ah let's see so what did I do wrong so we have our X we have our front and two we have our value we tell it to include here the so we do want to include in our total credit limit I'm probably leaving a flag off and it but it should show up right here I'm going to keep going the thing wrong I didn't flip a flag or something or maybe in my parameters table I don't have it set as well um all right so I'll keep going and then we have um let's see here so we have our credit limit expiration day so if it's going to expire at a certain date and again this does come from the parameter table um then we have our credit limit exchange date so every time I change this credit limit this date down here automatically changes um and then we have our customer credit group field that will get updated for us automatically as well um these are just user-defined Fields this last review date and next schedule date these are just user-defined Fields so that you can say hey this was the last time I looked at it this is when I need to look at a lot next time um you'll notice up here I gave them a ten thousand dollar credit limit but let's say that they're really eligible for you know 25 000 credit limit um and then you can put the currency that they're eligible in again this is just used for information purposes purposes so this section here is just for information purposes right and then you have this account status so the account status um allows you to add a status to the customer is only used for the blocking rules it doesn't actually put the customer on hold this invoice and delivery section over here on the right hand side is what actually puts the customer unfold right here um so but anyway so but the account status is tied to that so if I put this on hold you'll see that over here this goes unfold but this is just a default so I could go here and have this on hold but this could be set to know um the account status reason year um is just information so you can say why it's just used for information purposes um if it's with a collection agency again this is in title Health these are just used for information purposes um this risk section here we can create blocking rules around this so if you want to put in like when the company was established then you can put that here and then we can create blocking holes around that same with customer sense and nodes obviously is just a note and then this information here on the right hand side is fields that we're used to seeing um if the customer can't process you know you can't put an order for the customer you're going to set it to all that means you can't do anything um and then you have invoice so the customer is blocked with posting at the picking list packing slip and invoices and free text invoices payment means you can just they can just do the payment part requisition which is not used for customers and it never means you're never going to put them on hold so all right so all this stuff I think you're pretty familiar with probably from working with a customer before except maybe some of these credit fields all right now one field I do want to call out here um is this contacts field because I think it's a little bit confusing so you have collections contact if you want to add a contact intuitively you would think it would come from this contact information but just to give you an idea see I put a contact here right but when I go down to my customer contact field here you'll notice I can't pick it if you actually want to add a contact for the collection so you go up here under customer and then you're going to go to contacts and add contacts 365 all right and now when I go over here I'll be able to add that so just kind of know that it's a little bit odd where that is there all right so the next thing we want to talk about are risk scores so up here at the top you see risk of scores so risk scores are a great place to store key pieces of credit related data about the customer but risk scores can also be used to Auto generate credit limits even though they are not required they come in handy especially if you have a lot of customer records so if you want you can create risk scores that are based on scoring groups that you create and you can have as many scorn groups as you want and I can go in here but I'm going to go into the setup here in a second but these just give this will give you an idea um and then for each one of these different groups you can create scoring groups and then over here on the right hand side the system will give you a scorecard a scoring number um they're also used in blocking rules which we'll discuss later and it says but escort risk scores are user defined it's best to explain them with like an example so we're going to create some risk scores so let me go here I want to go into this setup and show you those things so we're going to go under setup credit management and then we have risk and we have score groups so you can set up as many score groups again as you want um and when you set up a score group you can set it up let me click new here just so you can get an idea Whenever you set up a score group it can either be user defined it can be average payment days customer Cent in business sense the sdo which is the days of being in a sales order and you'll see this is 12 months and average balance 12 months that comes from your parameters table remember I talked about the statistics piece just a little bit ago um that's for these 12 months come from so if you didn't want to be 12 months then you would go to the parameters table and change that Credit Management Group so remember on the customer record we just saw there was that customer credit management group that's where that would be used the account status in the country so these all read from values that you put on the customer record um except for this user to find one and then over here you have a range it can either be a range of something or it can be easier to find so let me show you what some of those look like so average balance so you want to say what is the customer's average balance over some time frame and you can see it set to range so it's going to be a from and two so if their average balance is zero to five thousand dollars then their ranking score is a zero because that means they're a fantastic paying customer right um and then so on so but down here if their average balance is a million half a million to a million then their score is going to be pretty high because it means they have more risk same for payment days again you'll notice here payment day so the system does keep track of how many days it takes for them to pay there's a batch job that you run associated with that and again you notice it's range which means it's going to be a from and two this one is set up is for country and it's user defined so you go in here and it's user to find you're going to add the countries and that's the reason this is sent to countries because this looks up the country table and then you can a submarine score groups or scoring numbers associated with each country um in the United States we use something called dun and Bradstreet ratings so DMB ratings which are pretty important that does the credit rating system in it a third-party credit rating system um so here you could say you know if they're an A1 rating they have a very low risk that means they're really really good at paying their bills but as the scale goes down you can see the risk score gets higher and higher and then we have number of years in business again it's a range and then same for number of years as customers arrange so you go through and you set up these groups and you give them ranking then the next thing you do is you set up a risk classification and again keep the big picture in mind why are we doing this we're doing this so that we can start evaluating or scoring our customers so that way this we can actually run a process in the system and the system will tell us like hey if they have a certain score then they can have a certain credit limit so that's the whole gist and the reason for doing all this setup so we can say if their score remember we have that scoring column if the sum of those scores when we did on the custom record are from 0 to 29.99 then they're great they're a low risk you know but if they're 30 to 59 yeah there could be risky if they're above 60 they're really high risk customer so this just gives you the ability again these are user defined but it gives you the ability to go through and determine like how you want to classify or rank um these different scores and again at this point it's not customer dependent it's the customer piece will come in a bit here all right so the next thing we need to do is now we need to go back to the customer record and we need to start scoring our customer go back to our d365 customer then if I go to risk scores you can see the list that we created here um and of course we can go in and we can these like average day to pay or the balance and average days these fields there's a batch job that you can run that will automatically update those um so that way you don't have to manually go in here and change those if we go here and we pick you know Spain we can see we have a risk score of four if we pick Italy you can see we have a true score of five if we pick Canada it's a zero so you can see that this value changes every time we change um you know the country then we have our gun and Bradstreet rating again so so the concept is again put in framing context of what's happening I'm setting up a new customer I've gone out and got the donut brass Street number I've already put in the number of years they've been in business how long they've been a customer by the way this is how long they've been a customer a number of years in business that's also part of that batch job these will dynamically update um based upon um based upon the the dates that we have on the customer record for the years of business or customer sent we don't have to manually go change these again if I say that they've been in your visit but I can manually set them as well so here I typed in a one you can see the risk four is a 10. if I say they've been in you know business for 50 years then they don't I've been in zero foreign same as being you know number of years being a customer it's going to be the risk of the main much higher than if they've been a customer for five years that kind of thing all right so how do we update these risks scores so again some of these actually as we mentioned and as we saw on the customer record down here under credit collections you know we do have all this information like years in business and then also by the way these are the statistics over here I don't have any yet because we haven't actually processed anything um but you know this information on the statistics you hit refresh but as far as like the system updating the risk scores there's a batch job you run and you can schedule it to run automatically and so you'll be going to credit collections and then under periodic there's something called update Credit Management update risk scores and if you want to include certain records you can just you know if we just want to include our one you know b365 or we can do all of them or do a range whatever then it's going to go run and it's going to go out there and reevaluate all of those customer the system defined Fields so we're probably not going to see anything different because I haven't processed anything but you can see that these got zeroed out I think it had those set to um to different numbers and again that you'll notice the risk is really high because they don't that we they just became a new customer so but again you would schedule this batch job or that process to run you know maybe once a month or or whatever or maybe even every day because it does affect the average days to pay and so on all right now we have this concept of automatic credit limits um so let's talk about what that looks like so if you wanted to a lot of companies don't do automatic credit limits it is an option um again I haven't really seen it used much but just know that if someone asks you for that it is something that that you can do all right so again um under setup Credit Management risk you have this automatic credit limits so what automatic credit limits allows you to do is you can say if their risk or value is a 30 so or excuse me I'm sorry I read that wrong so the average day to pay and I can just hit the drop down here so you can pick any of these right um but if you in this example right here we can say if the average day to pay is greater than 30 then we're going to give them is greater than or equal to 30 then we're going to give them a credit limit of 500 000. if it's greater than 65 days um then it's going to be a hundred thousand so you can see the the longer it takes them to pay the lower their credit limit is but again you can Define these um you know however you want so you could say is is not as greater than is less than and so on now once you have that set up um you can actually execute this so to execute it there's a job that you can run um so you go back to the customer and there's a process in here that you can run to generate so here we can say credit limit we go to lines we can say generate and then we can say automatic credit limits um one thing I do want to point out there are two ways or two different workflows associated with the credit limit changes um you can actually do a workflow for the whole Journal so for everything here you can have it go through workflow or you can do it per line so if you wanted you know so maybe certain customers belong to certain business people in your company then you can have the workflows go to different people but there's two different workflows that you can use for changing the credit limit um again I do want to talk about the fact box fact box a little bit on this customer just to give you some information so on the right hand side of your screen you do have a fact box you have recent activity last invoice invoice amount last payment last payment amount you know any kind of contact information that again I added the one so we have that one but down here for the statistics you have a high highest balance this is the date for the customer owed you the most money okay um or the highest balance this is the the highest balance and then we have I'm sorry here this is where I want to be so this is the highest balance date so this is the day for the customer owed you the most money you have this DSO six months and again what's that six months comes from the parameters table but this is the average days sales orders outstanding so DSO stands for days sales order outstanding and then you have the DSO for 12 day or 12 months and we have our average payment days this is an average number of days it takes this customer to pay their invoices and then you have average balance and again it's in parentheses because it comes from the parameter table this is the average balance for the for the time frame um and then you have average balance for in this case like 12 months as well so that you can have two different ones you have the credit credit rating this is a user defined field that shows a credit collections fast tab um so again that would be your credit rating you have the risk score and this is from the risk course screen or the risk group you have the credit limit this is the total credit limit that shows on the credit collections fast tab and then you have your average percent or credit limit and this is based upon the money the customer has spent this is the average percentage they have used for their total credit limit and that's here all right then you have average percent exposure and this is based on the amount of money the customer has spent is the average percentage they have used other credit limit so it's all just good information there all right so now we're going to talk about customer credit groups and how they're used so early on I was talking about how you could have a group of customers that share a credit limit um so I want to talk through that just a bit so we're going to go into customer credit groups so we're going to go here customer credit groups and you can have as many customer credit groups as you want but a customer can only be an a customer group so we're going to call those three sixty five and we're going to say that this customer group is nine hundred thousand and if you want to give it an expiration date you can all right and then down here you can start adding customers now one of the things you're going to notice is you can do it across legal entities so if you had multiple companies that were you know in different d365 companies then you they would that you can include those here so when the system's doing the credit check it's not just looking at your legal entity can look across legal entities which is really helpful okay all right and again you can add and add an ad to this list and just have the one there but now one of the things that you may be asking yourself is like well what does the credit limit on the individual customer do if I have it part of a group does it actually look at the credit limit on the customer record because if you recall over here we also have a credit limit on the customer and the answer is yes so it's important to understand the hierarchy of how the system looks at the credit limit first the system checks to see if the customer belongs to a customer credit group if the customer is in a customer credit group then the credit limit set up on the customer credit group is used if a customer is in a customer group and there's enough credit in the group so again we had nine hundred thousand dollars right so if we have nine hundred thousand dollars and collectively there's still money left over like collectively all those customers if they look at the sales order balances and stuff there's money left then the system goes here and it looks at the temporary credit limit if there's not a temporary credit limit then it's going to look at the credit limit on the customer so it does respect the fact that there is a credit limit on the customer record but it only looks at the credit limit on the customer if there's enough money left over in the group so it's something to keep in mind it's um it's a little bit confusing if you don't understand the hierarchy but you guys are Consultants like me so you're used to the system um your use of that table group all kind of concept or the hierarchy kind of concept so the first thing is doing is looking at the group if there's enough money in a group then it goes and looks at the individual customer to say how much can that customer spend then one other thing I just want to briefly touch on I know we have about 15 minutes left and I want to leave some quiet time at the end for some questions so um I mentioned this briefly but I want to talk about it again you'll notice that I can't you know if I want to change his credit limit I can go here and do it but again it's because there's a there's a parameter for that that says they're not allowed to do that or not um if if I didn't have that enabled where I could manually do it then I would have to use this adjustments so typically if a customer is going to use credit collections you're not going to let them change it just willy-nilly on the screen you want them to actually go through a journal and to do that they do credit limit adjustments and you can go up here you can say that it's a credit limit and you can go to lines and then you're going to give it your customer and we're going to say the new credit limit is fifteen thousand dollars right and if I want to do an expiration date I can again I don't have to and I'm going to save and then I have if I had a workflow I would submit a workflow um otherwise I can just go ahead and post all right and now when I refresh my screen we should see that our credit limit is now 15 000. but I'm going to skip through some stuff for sake of time um yeah let's go down back to our PowerPoint here just really quick and talk about blocking rules so we've done all this work right we have all this work done to say hey what are what do we want the criteria to be well now we have all this criteria but now we're going to talk about blocking rules so blocking rules allow us to use that criteria but it also allows us to do some other things so there are nine blocking rules so there's days overdue account status terms of payment credit limit expired overdue amount sales order amount credit limit used rank payment terms and rank settlement discounts so I'm going to go into the system and show you those um how that how that works so let's get back into d365 so again you have risk bars and you have blocking rules and that's really the the important thing to know so blocking rules so credit collections um and then set up and then blocking rules so this is where you'll notice if you're getting these there's seven here and I mentioned that there are nine so there are two more outside of this list um but you can go through here's for days overdue and again it is a table group all concept you can do it for a certain customer customer group risk group you can either say it's either blocking or excluding something um you can say if it's equal to or greater than that kind of thing and so on so what I want to talk about here because I'm going to run out of time um is that again there are nine blocking rules and there's a hierarchy to how the system uses this table group all along with this the accounts group and risk group and stuff like that um oh I'm going to skip through a piece of that um just know that these are here so we have days overdue we have our payment terms of payment trying to see if there's any of these that aren't very intuitive that I want to call out um because I don't have time to go through all of them so trying to one of these that might be particularly helpful if we talk about the terms of payments this is not necessarily um what you might think so you have payment terms right like net 30 to 10 at 30 that kind of thing but there's also something called terms of payment and I'm going to split hairs a little bit on that because I personally thought that that was a little bit um fusing oh no I'm sorry I'm getting ahead of myself it's it's something else a bit later so I'll get into that in a second then you have credit limits expired now one thing to know about the credit limit expired this looks at the customer's credit limit expiration date and adds the grace days if a customer credit has expired and the gray says are exceeded the sales order will put the order on hold if it's a type of blocking so just so the important thing to know here is this is important because just because a customer's credit limit has expired does not cause the order to go on hold the setup of this rule is what makes it go on hold so is going to look at this customer's credit limit expiration date and it's going to add these Grace days okay so that's what these are days credit limit expired so if it's expired it's going to allow to go 30 days beyond that before it actually puts it on hold so it's something to pay attention to it's something kind of easy to miss if a sales order doesn't go on old but it has expired then you want to go here and see what the grace days are all right overdue amounts um this is particularly helpful sometimes we don't want the sometimes you don't want to say okay if you're 100 you don't want the customer to use all of their credit limit so if I have a credit limit of fifteen thousand dollars I don't want to wait till I'm at fifteen thousand dollars to put the order on hold I may want to say hey when I get to fourteen thousand dollars I want to put the order on hold so that someone can look at it it doesn't mean they're not going to process the order but it does mean that they want a human to look at it and say yep it's okay so in this example we're saying that uh the overdue amount is ten thousand dollars and it's over eighty percent of their credit limit has been used then we want to go ahead and put the order on hold so this is one that a lot of customers use this is a really nice one to use all right and then we have sales order this looks like the sales order amounts um the first rule that it looks at now this one is important so I want to get into this exclusion you see this exclusion down here I want to talk about this a bit all right so the first rule that is looked at is it looks for all and it looks for exclusion and it looks for this release sales order this combination is unique so whenever you're putting in a sales order if your sales order meets this criteria then this becomes like the Golden Rule so that way if if it meets this criteria it's not going to look at any other blocking rules it's going to say hey it met this criteria in other words I have a sales order under a thousand dollars I don't care what the credit limit is I'm going to let it go through this becomes like the Golden Rule so you do want to make sure that this com this combination right here of all exclusion and this release sales order combination is the first rule that's going to be looked at all right and then we have this credit limit used and again this is saying if they use 90 of their credit limit you know put them on hold um as we looked at all right um and then rule number eight down here is we have rank payment terms this is the one I want to call out because again this I thought this was a little bit um different so you can go in and actually put these are your terms of payment right here and then you can rank them so if someone's paying in cash the risk is really low right um if someone is paying net 30 you know it's a one if it's net 45 it's a two and so on so that becomes particularly helpful um but here's here's where the rule part of it comes in so the rank payment terms if a user changes the payment terms on the sales order the whole process looks to see what the new payment term is ranked so if I'm on a sales order and normally they're set to cash right but on the best particular sales order I said it's net 30. well guess what that's going to trigger a credit hold because it's saying hey you went from a rank of zero to a rank of two no you can't do that now if I were to go from cash to Cod they have the same rank then it's not going to throw it on hold but if I skip this rank change rank numbers the system's gonna put that sales order on hold all right and then the last rule or the last blocking rule is this rank settlement discounts so the same thing is true if I'm on a sales order and I have again they're going to have to pay net 0.05 within 10 days it's a one but if I were to go down here and do one percent if they pay in seven days it's a two then on a particular sales or is going to throw it to be on hold okay and so how does this impact the sales order so this is what we've all been waiting for right we do all this work so that we can get to the point of doing the sales order um so we're going to create a sales order and just to show you some how this works so we have our new customer right it's because service items so we don't worry about inventory and let's just say that the unit price we're gonna make it really big just so it's risen on credit hold right okay so now when I go over here and I go to sales order and I do the confirmation and again remember it's going back to the parameter table and it's saying when am I supposed to take credit and I had a flag on the confirmation so what this is going to do is it's going to show us up here at the top you can already see see it stopped it so if we say manage here we can say that order has been set to creditments into Credit Management all right so what does that mean on a sales order if we go up here into Credit Management we can say Credit Management old list and we can see that it's on hold if we go through the blocking reasons we can see why it went on hold I have the ability now to release it if I want to by the way there's this with posting and without I want to explain that um so if we just said you know manager decided with posting if this is so this is with posting or without posting so if it's with posting the system keeps track it says what put it on hold well it was the confirmation so if I say with posting the system will automatically post the confirmation whenever I release it if this says without posting then it's going to release the order bill it will not post the confirmation okay and same would be true if I was doing a credit check a packing slip or one of those other steps um the other thing to know is on the customer record um on the header so if we go to header there is a credit piece here again we can see that it's on hold list and he released it and some different things here the other place to see it is under credit and collections if we go under Credit Management list we can see all credit holds which would include open and closed we can see open we can see closed and we can see the ones that are due for review so if we go to our open Credit holds we'll see our order there see it's here and if I want to release it I could say you know manager with posting and release and okay and the system does keep track of your query so however you were trying to to do that post for this packing slip or whatever um then it it knows that query setting so whenever you do do the post then um it will post with that you don't have to worry about resetting the query so let's go back into our sales orders and it's d365 but I think right there and we'll notice now when we go up here to credit management Credit Management old list we can see that it's no longer on hold okay all right so we go back over here to our demo so this is this is it um we have about four minutes left which I was hoping to have more than that but um there's a lot to cover in a short amount of time so is there anything that you have questions about or do you guys have anything you would like to ask uh I think this was a great session at least yeah thanks for demonstrating all the functionalities what we have this has been really an insightful session uh yes I will leave this to the audience I think what else she has there's this man yes Ramen hi Alicia very nice session thanks for doing that appreciate that it's a wide topic so we can't cover everything in detail uh just a question around um notification so is there a setup or capability where we can send notifications to customers if they're if they have been put on hold um just curious curious to know yeah I know it's a good question now there to send something to the customer to say hey your order was put on hold um the internal process is the calls are just internal um I'm sure you could probably do a modification pretty easily for that because the system knows the customers invoice or the their email address and they have all that criteria but out of the box I'm not aware of any way to notify the customer that is on hold yup thank you uh just one more uh business and I do just throwing out in case you have any thoughts around it so uh is there a capability where we can take the credit limit off based on the quantity which we are not able to deliver so an example is a customer places an order for let's say fifty thousand dollar worth of goods and we promise to deliver it in 10 days but let's say because of supply chain issues we can't deliver it for 30 days so now the customer credit limit is blocked and they can't order other Goods which are available in stock so is there any such capability where we can um you know release that credit limit if we are not able to fulfill the order I'm just throwing out the question uh we face that scenario yeah no it's a good question that you wouldn't you'd have to create another order so what you would want to do is reduce the quantity on that one order and create another sales order for the balance um so that way you would you you know you could just decide which orders you wanted to release there's not a way to discriminate um because a sales order hold is at the header of the sales order it's not at the line level it's at that the header level of the sales order so you'd have to create a separate sales order to to do that no that's correct we are managing it manually as well yeah but yeah thanks for confirming that thank you absolutely I appreciate it my pleasure that is there any data entity where I can upload or you know anyone can upload multiple credit adjustment in one go for all the customers well worth it for the for the adjustment the credit limit adjustments is that what you're asking yeah I have a scenario that you know it's just a suppose a company wants to input all the credit limit adjustment for in in one go when they have 1000 customers so they want to have 1000 customer adjustments we have question I've not personally done that have you tried the X Aladdin and have you tried to import I've not personally imported into that table um but I don't know if there's a data entity for that um but it seems like that you should be able to but I haven't personally done that it's a good question it'd be worth looking into now you've got me curious it's a good question okay um is there any question from anyone other place we are on time I have one question here Alicia this is Rakesh here so first of all thank you very much for your time and it was a really lovely session if someone wants to understand go to Spirit management the whole picture of white form parameter setups and end tone process would you like to touch base on the standard reporting capability around what product offers if someone wants to just go through and just tie the knot of end-to-end process along with the reports inside of it as well yeah so there's not any reports per se per say inquiry screens this show you like what's on hold what's so you have the all which shows you everything that's either open and closed or just the open or just the closed or the ones that are um need to go through review so and again those can go through workflows I didn't point that out but when you release a sales order from hold it can actually go through a workflow so there are three workflows in the system but as far as like reports go I'm not aware of any reports around it per se you would just go query off of those that that view screen that shows you the stuff that's on hold or has been released from hold thank you again all right very good um I did blog about this I did like a 11 series blog a few about a month ago and that's where roommate reached out I do have the entire documents if you're interested in that I could um be happy to share that out um but it does it literally goes from top to bottom in here because I didn't have time to cover everything today I was trying to get the Highlights but um because one of the key things in dg365 is the hierarchies right so when you're doing a sales order and you're looking at all these nine different blocking rules and you're like which one does it look at first like how does it know right so I've documented that in this document um and I also blogged about it so if you happen to have seen that blog it's in there as well but I've that's the information for me that I find really helpful because it's the logic it's like how does it know what to do next because you'll have a customer that'll be like oh well why didn't the sales order go on hold well and you're sitting there scratching your head going gee I don't know right so you have to go back through the logic and if you know what the logic is it's really easy to kind of pinpoint that and determine why it went on hold or wiped in go unfold [Music] great yeah I also wanted to tell that if to everyone that Alicia wrote around 11 blocks 11 Block series on credit management so when we will be publishing the recording we will also be publishing the her the blog Series so that you can take a look and take a reference on those blogs okay so if that is no questions then we can wrap up but I would like to appreciate Alicia for you know preparing so much so well that she could you know able to explain these things very well so thanks so much it's my pleasure and everyone especially for joining this session cheers good morning yeah thank you okay for the great session yeah okay it was my pleasure and if you do have any questions feel free to reach out I'm happy to help any way I can thank you thank you Alicia nice is here you too take care thank you bye foreign