Credit Check Functionality in Order Management

Credit Check Functionality is an important feature of Oracle Order Management and helps you to minimize the financial risk of your organization. Lets have a look at the setup steps

Setups

Step 1) First Step is to define Credit Check Rules

Navigate: OM> Setups>Credit

Define Credit Check Rules

a) Define a Name for the Credit Check Rule : "Credit Check Car Orders"

This rule we can apply at 

Ordering

Picking/Purchase Release

Packing

Shipping

b) Select Effective Dates for Credit Check rule

c) In options Tab, define Credit check level i.e. you want to credit Check at Sales Order Header or Sales order Line

d) Define Credit Hold Level i.e. where you want to place the hold. Either at sales Order header or at sales order line level

e) Define Conversion type. I f you use to enter order in some other currency other than functional then this conversion will be used to calculate credit limits

Define Credit Check Rules

f) In exposure tab, you can select, how total exposure value will be calculated i.e. what to include in deciding the exposure and compare it with the limit. You can use Open receivables, tax, returns etc

Step 2) Select Credit Check Box at Payment terms you are going to use

Select Credit Check on Payment Terms

Navigate : OM>setup>Orders>Payment Terms

Select Credit Check Box. This payment terms need to be there on order

Step 3) Define Credit Limit at Customer Site level

Navigate: OM>Customers>Standard

Search you customer and Navigate to site level and Profile Tab

Define Credit Limit at Customer Site level

Here you need to tick the "Credit Check" box

And in Profile Amount, you need to mention the amount limit for the order

Step 4) Add Credit Check rule in Transaction types

Add Credit Check rule in Transaction types

Navigate: OM>setup>Transaction Types> Define

Query for "Test Car Orders" and in Main Tab's Credit Check Rules, please add the credit Check Rules Defined in Step 1.

This Covers the Setup Part

Test Case

Create a SO having limit more than 200000.On Booking the order you will see the Credit hold is applied as value exceeds 200000.

Thanks

Mandeep

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