[Music] hello and welcome to the second episode of credit management functionality view in Dynamics 365 for finance and operation in the first episode we talked about how we can configure a system to automatically suggest customer credit limits for us in this episodes we'll talk about how we can automatically put sales orders on hold in order for us to do that we will review parameters needed to be configured we will then talk about blocking and exclusion rules and then we will put it all together by creating multiple sales orders with different rules in place first let's review the parameters navigate the credit and collections go to setup and credit and collection parameters from there on let's click on the credit tab and let's expand credit management checkpoint tab auto box will have five triggers that will check rules and decide whether or not the sales order would have to be placed on hold for this example I have activated these checks on the sales through a confirmation posting and generation of the picking list so both are activated you could also apply the same checks on the pro forma postings there is also grace days that are defined here and you can see that it has two for both confirmation and the piccola steps and I will explain why those race days mean in the later in the video from there on we'll have to review different blocking rules so let's navigate to blocking rules under setup credit management setup we have eight different categories for which we can create blocking and exclusion rules we can create rules based on the invoice days overdue we can create rules based on the account status for the customer terms of payment expiration dates of the credit limit over the amount on sales or invoices sales or totals and the amount remaining on the credit limit so let's review a simple example let's create a new rule under credit limit expired section I will click new I will say that this rule should be applied not to a specific customer not a group of customers but all the customers but in order for me to limit my selection I would say that this rule should only be applied to the customers that belong to high-risk group and this rule will block sales order if the customer qualifies and the second criteria here will be a number of days that the credit limit was expired and let me save 10 days so what that rule basically says is there are two conditions first condition is the customer has to belong to the high-risk group and second condition is that the customer should have credit limit expired for more than 10 days if those two conditions are met then the sales order should be automatically placed on hold I'm gonna save this rule and now now let's review the customer that we will use in our scenarios how the customers the customers that we will use for this demonstration will be you as zero seven view as zero one seven turtle whole sales I will expand the cart and what I will do here is scroll down under credit and collection tab and make sure that the credit limit that is currently set to 1 millon is expired for more than 10 days so let's say it was expired on March 1st let me save those changes so now we know that the first condition has been met now let's think about the second condition which means customer should belong to the high-risk group if you watch the second the first part of this series you will know that we can define multiple risk groups and then assign automatically assign customers to one of those roots groups based on the number of points or the score that these customers have so let's review the score that was calculated for this customer I will navigate the credit management tab and click on risk or I can see that based on the to scoring groups that I have defined I have a score of 45 plus 50 so I have a total score for this customer which equals to 95 and then if I want to understand what risk group the score puts that customer to I will go and check the risk classifications credit in collections and then risk classifications and then I see that any customer that has score from 61 to 100 would belong to high-risk group and I know that this is the case for my customer u.s. 0 1 7 because this customer has a score of 95 let me go back to the customer and based on our review so far we understand that this specific customer satisfies two conditions for our blocking rule it belongs to the high-risk group and it's credit limit has expired for more than 10 days now let's test it let's create a sales order for this customer I will go to do list of all the sales orders clicking you to create a sales order select my customer account click OK to create new sales order I will use item 1000 that has a sales price of $120 save that sales order and now I need to trigger the check and you remember that one of my triggers would be posting of the sales or confirmation so this is what I will do I will go to the sales tab confirm sales order and I'm going to click OK so I'm gonna post that sales order without printing first of all we see the error message and if we click on the message details we see that the order has been sent to credit management and we see that the sales or confirmation failed to post because we don't have any sales or confirmation journals right here the second thing is that we can go to the credit management tab and click on credit management hold list and we will see that we have one active hold hold number 17 we see the active checkbox checked and we know that this specific sales order is on hold right now if we would like to know the reason for that whole to be created we're going to click on blocking reasons in the top left corner right here and we see if there isn't that this hole was created is because of expired credit limit let me close this form we will come back to that form to review all the options that are available here another thing that I would like to clarify here is that credit management holds are separate from existing order holes that were there prior to credit management update what I mean by that if we look at the sales floor header and we see that they do not process checkbox is set to no and if we go back to the sales order tab order holds we see that standard or legacy order holes were not created it was strictly credit management hole that was applied so those two holes are separate I think they should be combined at some point in time but at this point Microsoft decided to keep them separately let's go go back here now let us go back to our blocking rules and let us create an exclusion rule in the same credit limit expired categories so I'm still in my category right here I'm gonna click on you to create a new rule another thing that I will say here is that if you keep a table here the system doesn't really prompt you to enter a customer account if I can save the rule here and it doesn't really ask me to specify the customer account in this field so I think it's one of the bugs that should be fixed in next releases I guess but that's what I would expect if you see table I would I think the entry of the customer account should be mandatory but I'm gonna say in this case I would like to create a rule for a group of customers now the question is is it for the customer group is it for the price group or another group on the customer record so that's raised here this is for the credit management group this credit management group can be used to define a credit limit for a group of customers but in this case I'm gonna use this group to define an exclusion rule so I would select that this rule should be applied only to the customers that belong to credit Management Group 900 and then I will say it's not going to be really blocking rule it's going to be an exclusion rule and right away when I change it you see that this operator has changed to less than or equal to and then I will say let's say hundred days what that means is there are two conditions if the customer belongs to customer credit group 900 and it's customer credit limit has expired 400 days or less then we should exclude that customer from our hold I'm gonna save that rule and now let's review the customer that we are using right here so credit limit has expired on March 1st so it's really less than hundred days because right now is April fourth that's that's number one and number two is that we see that this customer belongs to the credit management group 900 so we just confirm that this customer qualifies for that exclusion rule so let's test it in action we're going to create another sales order right now so now we see that sales or confirmation was posted successfully here it is if you look at any credit related holes in this list right here it should be blank so we just confirmed the exclusion rule has worked let's go back to our blocking rules again and now what I would like to do is to create an exclusion rule but in a different category so I'm gonna delete this exclusion rule from credit limit expired yes so now I still have a blocking rule based on the ten days expired credit limit but now I will navigate to the terms of payment category and I will create an exclusion rule that says let's exclude the customers from blocking if they payment terms are not 45 and I'm gonna save that so now have a blocking rule under credit limit expired section category and then I have an exclusion rule under terms of payment category if you look at our customer we can see that the customer default payment terms are net 45 so it definitely qualifies for that exclusion rule but at the same time it qualifies for that blocking rule based on the expired credit limit so let's test it in action so we see that the seller confirmation was not posted and our order went into credit hold let's check it here's our list blocking reasons it was put on hold because of the expired reason so what we can conclude from here is that if the exclusion rule and the blocking rule are into two different categories they will not cancel each other so in this case customer qualified for both rules and because the exclusion rule was in a different category than the blocking rule exclusion rule didn't really cancel the blocking rule now we will review another example where it actually is an exception to what I just said so what I will do here is I will go and delete this exclusion rule based on the payment terms do we I will then go and create another exclusion rule under different category in this case it will be that sales order category so here it is I'm gonna click new again it will be applied to a group which group is going to be applied to credit management group 900 it's not going to be a blocking rule is going to be exclusion rule and what I will say here if the sales order is less than or equal to 200 then this exclusion rule should be applied at the same time I will also check that reliefs sales for each check box now let's think about what's gonna happen so what that rule says is there are two conditions if the customer belongs to credit Management Group 900 which we know that our customer does and the sales order total is $200 or less then this exclusion rule should apply but we also check this release sales a checkbox and what that tells system is cancel any other applicable blocking rules and make sure that this sales order is released and is not placed on hold so this checkbox overrides any blocking rules from any other category and we definitely have another blocking rule under credit limit expired rule right so let's save those rules and let's test it by creating another sales order so here's my brand new sales order if I check the total for that sales order I see that it is $120 right here so definitely under $200 and we know that this customer belongs to that nine hundred group so let's post sales through a confirmation here we see that we have successfully posted sales through confirmation and we know that there are no credit holes that have been applied right just because we have this checkbox checked so now for us to confirm that let's go back to our rules and the only change we will do now is just an check that release sales were old and save these changes and now we will test again you have brand new sales order same item so now we have a brand new sales order we have one hundred twenty dollars as the total and now we will go and trigger the check of the credit rules and from sales or post it again so now we see that the order why not hold again we can see it under this list right here and we click on blocking reasons we see that it might not hold because of the expired credit limit so what we can conclude from here is that without that checkbox checked we're back to the situation where we have blocking rule and exclusion rule in two different categories and they did not cancel each other so they it's quite important to understand the meaning of that chat box when you create your blocking or exclusion rules all right so now let's test one more scenario where I checked this check box again but now I will say that the sales were totals should be $100 or less save these changes and we're going to test it once more by creating brand new sales room so the total for that sales order is $120 and we're going to post sales for confirmation we see that the sales for a confirmation did not post and when now I'll see that we have the credit limit applied it's active credit limit number 20 and we go to the blocking reasons and we see it was because of the expired credit limit again so what we understand now is that that exclusion rule that would have cancelled the expired credit limit hold did not really apply to that sales order because the sales route Aurel was more than hundred dollars that we have defined now let's take a look at things that we can do with active order holes this is a list of all the order holes that are applicable to that specific sales order you also have a view that shows you our active order holes for all the sales orders one thing that we you can do is you can evaluate for release what you basically asking system to do is say let's check the rules again to see if that hole is still valid you may have changed the rule you may have added an exclusion rule you may have changed the credit limit expiry date you may have gotten some payment from the customer so there may be different things that had happened in the system and now the reason for that hole might not be longer there right so you can actually manually trigger the check to see if that hold is still valid right because we have not really changed anything the system will not remove that hold for us you can also reject with a reason so what that will do is will cancel the sales order with a reason code that we specify right here and what we're interested here is we're gonna release that sales or of course we'll have to provide the release reason code as and then we have an option to release it with posting or without posting one you release it without the posting the system will just deactivate or release that hold for us but we will then have to manually do our next steps for example posting that sells for a confirmation that failed to post in the first place if we are doing the release with post in which we will do right now the system will prompt us to post that sells for confirmation right away because it knows that we were not able to do it initially so now we're back to posting sales for confirmation and I'm gonna click OK once you do that you will see that the sales for your confirmation will be posted and the hold will no longer be active it's still going to be there but it's not going to be active that means it's not going to block us from any other next steps let's close this form let's go back to the sales order now let's talk about those grace days that we have defined under our credit and collection parameters you remember that I have defined two days for the sales or confirmation and two days for the picking list posting what are the meaning of those those days define a number of days for which this sales order hold that was previously released by the user will not be applied again so in our case we posted a sales for a confirmation and the system applied expired credit limit hold for us will then manually release that hold deactivated that hold and posted the sales for confirmation from there we have two days to do any steps that would check the whole rules again and within those two days the same Holt will not be applied so what I'm what I mean by that is I have two days to do my sales or confirmation posting and the pick and list posting so let's check it out I will then go and post a second sales or confirmation and because I'm doing that within grace days within two days from the release of that sales or a hold the system will not reapply the same hold again you see that I have posted myself through a confirmation again and I don't have any active holes created again I still have that original hole but it's no longer active right here and the same thing goes to the picking list right pick and list posting was one of the other actions that would trigger the check for my holding blocking rules but because I'm doing it within two days to graze days the system will not apply the same hold again I cleared that expired credit limit hold so it will not apply it again if there were any other holds that were applicable the system would still create those but it would not create the same hold that I just cleared you see right here that I was able to post the picniced without any errors and the last thing that I wanted to mention here is I found a small bug that did not allow me to specify ranking for my payment terms and my cash discounts there is another blocking rules that exist natively that allow you to put as sales or on hold if you change payment terms with a high ranking so for example you had a net 45 terms that had a ranking of 10 let's say and then you manually change this payment terms from net 45 to net 15 on that sales order and the net 15 terms had a ranking of let's say 50 so the net 15 has a higher ranking compared to original payment terms ranking and the system should have placed that cells automatically on whole so in order for you to use this functionality you first have to assign the credit deck ranking to all your payment terms and if you try to do that right now you will go to setup rank payment terms right here so here is the list of all the existing payment terms you cannot create new terms here you can only just assign the ranking so if you try to assign a rec you know for example of 10 to cash and try to save that change you're gonna get this reference table ID must be filled in ere I bet it's a very small bug it's a very easy problem to solve for a developer but at this point in this way if one 20/20 release of dynamic 365 that error is still there and you will not be able to assign rankings and therefore you will not be able to test that functionality so I hope that this issue will be fixed soon and users would be able to use this functionality to block sales orders based on the ranking change for the payment terms that is all I wanted to show you today I hope you found that useful until the next time [Music]