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E1: 42: Credit Checking in Sales (Doc ID 2319760.1)

Last updated on JANUARY 03, 2020

Credit Checking is an EnterpriseOne tool used to reduce exposure against outstanding accounts receivable balances. Credit checking provides information about a customer’s account.¬†EnterpriseOne compares a customer’s accounts receivable and open orders to the customer’s current credit limit.¬† Orders can be placed on a credit hold depending upon setup definitions.

Two types of credit checking are provided:

  1. Credit Limit– An amount set up in the customer master record is compared to the order total and any outstanding accounts receivable balances. When a customer exceeds their credit limit, their sales orders go on credit hold.
  2. Aging – Criteria can be setup that causes a customer’s orders to go on hold based on the age of outstanding accounts receivable and the percentage of receivables in an aging category.

When aging credit checking is active, a credit limit check will be performed in addition to the aging credit check. No distinction is made between an aging credit check or a credit limit credit check when an order is placed on credit hold. The only way to perform a Credit Aging Check without a Credit Limit Check is to leave the credit limit field blank on the customer master but still activate credit checking with aging criteria set in the order hold constants.

 

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