In February, Microsoft added Credit Management to Dynamics 365 for Finance and Operations’ standard product offering to enhance the existing Credit and Collections functionality. The February release was for public preview with general availability in April. I’ll begin with an initial overview and then get into the nitty-gritty details as we move along. As this is a hefty topic, this blog will be a multi-part series detailing the new Credit Management functionality and features in D365FO. Hopefully, after reading the blog series you can have a comprehensive understanding of how to set-up and apply the new Credit Management features! DISCLAIMER: The Credit Management functionality is all around Sales Orders and a little bit in Free Text Invoices. At this point in time, the Credit Management features do not apply to Project Invoices.
Overview of Credit Management for D365FO
Credit Management allows you to set credit limits for the long-term, but you can also set temporary credit limits to accommodate timeframes where the customer might be at a higher risk. Insurance and guarantees that you may purchase to cover certain risks can be added to the customer’s credit limit to lower their overall lability. You can also set up credit limits groups to manage sister-companies holistically and reduce the overall risk of a customer’s footprint both in a single legal entity and across multiple D365FO legal entities. Once the initial setup is complete, risk scores are auto-updated allowing the ebb and flow of risk to be automatically adjusted based on key points like the customer’s average days to pay, average balance, etc. Risk groups, which are used to determine risk scores, are also used to set automatic credit limits. The evaluate for release process can also be scheduled in a recurring batch to auto-release Sales Orders from hold. This along with the existing collection management features give the credit manager full visibility of the potential risk exposure and the tools need to respond with very little maintenance across multiple D365FO legal entities.
The topics included in the series are:
MSDyn365FO Credit Management, Part 1: Is Credit Management enabled in your environment? MSDyn365FO Credit Management, Part 2: What are the new parameters? MSDyn365FO Credit Management, Part 3: What’s new on the Customer screen? MSDyn365FO Credit Management, Part 4: What are Risk Scores and how are they updated? MSDyn365FO Credit Management, Part 5: What are Automatic credit limits? MSDyn365FO Credit Management, Part 6: What are Customer Credit Groups and how are they used? MSDyn365FO Credit Management, Part 7: What logic is used when looking at the customer’s credit limit? MSDyn365FO Credit Management, Part 8: What are credit limit adjustments? MSDyn365FO Credit Management, Part 9: What are Blocking Rules? MSDyn365FO Credit Management, Part 10: How does all this impact the Sales Order? MSDyn365FO Credit Management, Part 11: What are the new Credit Management Lists used for? Questions or comments? Feel free to contact us.