Best Use Cases for Credit Management in D365 Finance and Supply Chain

Introduction

• Speakers: Chris and Sue
• Moderator: Jenna
• Topics: Best use cases for credit management in D365 Finance and Supply Chain
• Questions: Type in the chat and will be addressed at the end
• Survey: Complete the session survey
• CPE Credits: Session survey for credits
• Expo Hall: Visit ISVs, partners, and sponsors
• Presenters:
  • Chris Reussein: Senior Consultant at Logan Consulting
  • Sue: Project Manager at Stein Industries

Company Background

Logan Consulting

• 28 years of experience in ERP implementations and support
• Focus: Manufacturing, distribution, and service industries
• Microsoft Dynamics ERP Gold member since 2003
• Involved with D365 UGG since 2014
• Core services: Dynamics AX and 365 assessment, implementation, optimization, and support

Stein Industries

• Founded in 1907 in Wisconsin
• Divisions:
  • Carlson Airflow Merchandising Systems: Manufacturing display hardware
  • Carlson Fixtures: Custom fixture solutions
  • E-Switch: Electrical switches manufacturing
  • Ten Logistics: Third-party logistics (3PL)

Agenda

1. D365 Finance and Supply Chain Management (F&SCM) Overview
2. Functionality of Credit Management at Stein Industries
3. D365 Setup and Demos
4. Tracking and Maintaining Customer Credit Limits
5. Workflow Configuration
6. Credit and Collection Parameters
7. Automatic Sales Order Blocking
8. Sales Order Release Process
9. Open Q&A

Dynamics 365 F&SCM and Credit Management

Reasons for Choosing D365

• Multi-currency and multi-company support
• Scheduling Capabilities (Capable and Available to Promise)
• 10-year cost comparison competitive
• Advanced warehousing functionality
• Data integration/import capabilities
• Cloud-based technology
• No-code/low-code options

Customer and Credit Characteristics

• Customer Types: B2B (business to business), varying sizes
• Credit Terms: Vary significantly based on customer creditworthiness
• Order Size and Frequency: Vary greatly; larger orders require review
• Organizational Structure: Division-level order processing, corporate-level credit decisions
• Customer credit can change frequently; need for regular review

Credit Management Setup and Functionality

Tracking and Maintaining Customer Credit Limits

• Workflow Configuration: Directs approval of new credit limits (No manual editing)
• Customer Record: Revamped credit collections tab
  • Total Credit Limit
  • Credit Limit Expiration Date
  • Credit Limit Change Date
• Credit Limit Adjustments: Workflow-enabled
  • Method for adjusting credit
  • Parameters include expiration date and change amount
  • Filters for customer records
• Expiration Dates: Set for regular review of credit limits
• Workflow Process: Approval and automatic posting

Credit and Collection Parameters

• Credit Management Checkpoints: When credit is checked
  • Chosen checkpoints: Sales order confirmation and release to warehouse
  • Grace days included to allow for flexibility

Automatic Sales Order Blocking

• Blocking Rules Setup: Based on various criteria
  • Days overdue
  • Account status
  • Terms of payment
  • Credit limit expiration
  • Overdue amount
  • Large order amounts
  • Credit limit usage
• Additional Blocking Rules: Based on ranking of payment terms and settlement discounts

Sales Order Processing

Sales Order Blocking

• D365 Blocking: Automatic based on configured rules
• Manual Hold Release: Available for review and action
  • Decision on with or without posting

Sales Order Release

• Evaluate for Release: Automated batch job processing
• Demo: Screenshots illustrating blocking and release processes

Q&A Highlights

• Expiration Dates: Not required but useful for blocking rules
• Terms of Payment: Shared across AP and AR in D365
• Order Creation Blocking: Earliest point is at sales order confirmation

Conclusion

• Contact information for further inquiries
• Reminder to complete session survey and visit remaining sessions