WS: 42: Credit Checking and Credit Holds (Doc ID 626654.1)

Last updated on JUNE 03, 2022

Applies to:

JD Edwards World Sales Order Management - Version A7.3 cume 4 and later
Information in this document applies to any platform.

Purpose

Credit Checking is a tool used to reduce exposure against outstanding accounts receivable balances and provides information about a customer’s account. The JD Edwards World credit checking process 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:

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
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.

This document provides details on the set up required to activate credit checking within the Sales Order Entry process, gives details on related files, introduces the various inquiry programs for reviewing customer accounts receivable/credit data and explains how customer credit holds can be released to allow sales order processing to continue.