New Credit Management Feature for Dynamics 365 – Part 2

Posted on: March 24, 2020 | By: Dona Todorovska | Microsoft Dynamics AX/365

Risk Scoring and Classification 

Microsoft’s addition of the Credit Management feature allows users to assess their customers against multiple risk attributes to measure the amount of risk associated with each customer. Assessments are based on customer’s average balance, average days, the country of operation, and the years of business. Once classified by risk score, customers are assigned a risk group. These risk groups can then be used to calculate automatic credit limits and creates filters in blocking rules.  

Blocking Sales Orders 

Along with configurable risk scores, credit management capabilities will include blocking rules which can be created based on customer, risk group, or everyone. The 9 blocking rules include:  

  1. Days overdue 
  2. Amount overdue 
  3. Terms of payment  
  4. Credit limit expired 
  5. Account status  
  6. Sales order amount (with one exclusion that overrides all others)
  7. Credit limit used 
  8. Change in payment terms
  9. Change in discounts 

If a blocking rule is activated orders will be placed on hold or the orders can be forced on hold. Once the order is put on hold it is ‘in credit management’ and has a credit hold ID. The reason for blocking will be available to view by the collections team. Blocks can be evaluated through a periodic batch to release orders if the blocking reasons have been corrected.  

User’s will also be able to rank each customer based on their payment terms and put orders on hold if the rank is higher than the original. So, if a customer ranks 1 with payment terms NET10, but changes their payment terms to NET30 and then ranks 2, the order will automatically be put on hold.  

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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