D365 Blocking Rules
Posted on: June 28, 2023 | By: Meaghan Andrews | Microsoft Dynamics AX/365
When transacting with a large and diverse customer base it is important to be proactive in the credit and collections process to deter uncollectable receivables. D365 Finance and Supply Chain management has automated blocking rules that can be configured by credit managers to prevent a customer’s sales orders from being released. This blog will detail the seven blocking rule types that can be set-up in D365 Finance and Supply Chain Management.
1. Days Overdue
The Days Overdue blocking rule will place a customer’s sales order on hold if they have a past due amount over a certain number of days. These rules can be set-up to apply to all customers, a group of customers, or an individual customer.
2. Account Status
The Account Status blocking rule will place a customer’s sales order on hold based on the account status assigned to the customer. The account status is maintained in the Credit and Collections fast tab of the customer. For example, if you had a group of customers with an account status of “Credit Hold”, and then created a rule with a type of “blocking” and account status of “Credit Hold”, those customers’ sales orders would go on Credit Hold. Additionally, you can set-up rules that release all sales orders for customers assigned to a specific Account Status.
3. Terms of Payment
The Terms of Payment blocking rule operates similar to the Account Status blocking rule. A customer’s terms of payment will be assigned in the Payment Defaults fast tab of the customer. This blocking rule will usually be used for customers who need to pay in advance of shipment of the items. For example, a Terms of Payment blocking rule can be created to place any order from a customer with terms of payment of “CIA – Cash In Advance” on hold.
4. Credit Limit Expired
The Credit Limit Expired blocking rule can be used to block an order if a customer’s credit limit has been expired for a specified number of days. This rule is driven off the “Credit limit expiration date” field in the Credit and Collections fast tab of the customer. These rules can be set-up to apply to all customers, a group of customers, or an individual customer.
5. Overdue Amount
The Overdue Amount rules will limit an order being released based on the $ amount that a customer is overdue. These rules can be set-up to apply to all customers, a group of customers, or an individual customer.
6. Sales Order
The Sales Order blocking rules can be used to block a Sales Order that meets or exceeds a specified amount. This rule can also be used to automatically release sales orders that are less than a specified amount. For example, if you set-up a Sales Order blocking rule with a rule type of “Exclusion”, an amount of $500, and checked the “Release Sales Order” box, any sales order under $500 would ignore other blocking rules and be released.
7. Credit Limit Used
The Credit Limit used blocking rule can be used to block orders that bring a customer’s credit limit utilization within a certain percentage of their credit limit. For example, you can set-up a rule that blocks orders if a customer has used 90% of their credit limit. These rules can be set-up to apply to all customers, a group of customers, or an individual customer.
Next Steps
If you are interested in learning more about D365 blocking rules and more, contact us here to find out how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8817.