New Credit Management Feature for Dynamics 365 – Part 1

Posted on: March 10, 2020 | By: Dona Todorovska | Microsoft Dynamics AX/365

Introduction

Microsoft plans to release its new Credit Management feature (version 10.0.9) for Dynamics 365 in April 2020. This feature will enhance users’ abilities to manage credit for sales orders in their business. However, this is not its own module and is instead a part of the Credits and Collection tab. In order to enable it you must go into feature management and manually enable ‘Credit Management’. Within the credit management tab of the customer record, 20 additional fields will exist as well.

Customer credit groups and setting credit limits

The various components in this new feature center around establishing credit limits for a business’s customers and managing different credit groups. Within this feature, a business can set unlimited credit for its customers or impose a specific credit limit with a defined expiration date. Additionally, a business can smoothly convert credit limits between different currencies to prevent confusion when dealing with clients in different countries. It is easier to manage the credit levels for multiple customers by creating credit management groups. With this feature you will have the ability to assign one credit limit to multiple customers in various legal entities.

Credit groups alleviate organizational pain points in credit management because they allow your business to categorize similar customers together. Each customer can only be in one credit group at a time to eliminate any confusion. So, in this example let’s say customer A and customer B are in credit group X. Credit group X has a combined limit of $600k. Within this group there are also individual credit limits per customer like customer A having $100k and customer B having $150k. Before an order can be put on hold, the system will first narrow down which credit group a customer is in and then check their individual limit. Within these credit groups temporary credit limits can also be implemented on the entire group or specific customers. This is especially useful when you are dealing with customers in similar industries and with similar credit limits.

Logan Consulting  

If you are interested in understanding more about the Credit Management feature for Microsoft Dynamics 365, please feel free to reach out to us at info@loganconsulting.com or (312) 345-8817.  

Logan Consulting is a professional services firm committed to helping businesses improve business processes to get the most from their ERP investments. 

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