Lecture: Credit Management Functionality in Dynamics 365 for Finance and Operations

Overview

• Second episode on credit management functionality
• Focus on automatically putting sales orders on hold
• Will cover:
  • Configuring parameters
  • Blocking and exclusion rules
  • Creating multiple sales orders with different rules

Parameters Configuration

• Navigate to Credit and Collections → Setup → Credit and Collection Parameters
• Expand Credit Management Checkpoint tab
• Five triggers available for auto checks which decide if sales order will be placed on hold
  • Example: Activated checks on sales order confirmation posting and generation of the picking list
• Grace days can be defined for each check (e.g., 2 days for confirmation and picking list steps)

Blocking Rules

• Navigate to Blocking Rules under Setup → Credit Management Setup
• Eight categories for creating blocking and exclusion rules:
  • Invoice days overdue
  • Account status
  • Terms of payment
  • Expiration dates of the credit limit
  • Amount on sales/invoices
  • Sales order totals
  • Amount remaining on the credit limit

Example Blocking Rule

• Credit Limit Expired category
• Applied to all customers in the high-risk group
• Block if credit limit expired for more than 10 days
• Customer U.S. 017 Turtle Whole Sales used for demonstration:
  • Credit limit expired for more than 10 days
  • Belongs to a high-risk group (score of 95)

Exclusion Rules

• Create under the same categories in Blocking Rules
• Credit Limit Expired example:
  • Applied to a credit management group 900
  • Exclude if credit limit expired for 100 days or less
• Customer in 900 group qualifies and is excluded from hold

Conflict Between Rules

• Blocking and exclusion rules in different categories do not cancel each other
  • Example: Terms of Payment exclusion rule does not cancel Credit Limit Expired blocking rule
• Special exception when using Release Sales Order checkbox in exclusion rule:
  • Overrides any blocking rules from other categories
  • Demonstrated with exclusion based on sales order total ($200 or less)

Practical Scenarios

1. Exclusion rule without Release Sales Order checkbox
2. Exclusion rule with Release Sales Order checkbox for an order total exceeding the defined limit ($100 or less)
3. Different category conflicts with and without the checkbox

Managing Active Order Holds

• Evaluate for Release: Automatically recheck the rules
• Reject with Reason: Cancel sales order with a reason code
• Release with/without Posting: Manual intervention to post the sales order confirmation

Grace Days Concept

• Define how long after a manual release the same hold cannot be reapplied (default example: 2 days)
• Allows for further steps (confirmation, picking list) without triggering holds again

Bug in Payment Terms Ranking

• Exists in current version preventing rank assignment for payment terms
• Affects functionality of blocking sales orders based on payment terms ranking change

Conclusion

• Demonstrated parameter configuration, blocking/exclusion rules, scenarios, and managing holds
• Issue with payment terms ranking highlighted

Future Fixes and Updates

• Hoping for a fix in future updates to utilize full functionality

End of Lecture