In our last blog, we reviewed Customer credit groups and how they are used. Since there’s a credit limit on the Customer credit group and the Customer record, it’s important to understand the logic of the hierarchy.
Here’s the logic when looking at the customer’s credit limit. . .
- First, the system checks to see if the customer belongs to a Customer credit group, if the customer is in a Customer credit group, then the Credit limit setup on the Customer credit group is used.
If the customer is in a Customer credit group, and there is enough credit in the group, then, the individual customer’s Temporary credit limit including Insurance and guarantees is used. If the customer does not have a Temporary credit limit, then the customer’s Credit limit including Insurance and guarantees is used. For example, if the Customer credit group has a credit limit of $1M and the total sum of all the open Sales Orders for the group is $500K, that means there’s enough credit for the Customer credit group. Then the system looks at the customer. If the customer’s Temporary credit limit or the Credit limit is $100K and the Sales Order is for $110K, the system knows that there’s not enough credit and will put the Sales Order on hold.
- Second, if the customer is not in a Customer credit group, the individual customer’s Temporary Credit Limit including Insurance and guarantees is used.
- Third, if the customer is not in a Customer credit group and if the customer does not have a Temporary Credit Limit, then the customer’s Credit limit including Insurance and guarantees is used.
This blog is the next part of a multi-part blog series detailing the new Credit Management functionality in Dynamics 365 for Finance and Operations. Look for additional releases in this series in the coming weeks!
Looking for the other posts?
MSDyn365FO Credit Management, Overview – Credit Management Overview MSDyn365FO Credit Management, Part 1 – Is Credit Management enabled in your environment? MSDyn365FO Credit Management, Part 1 – Are there any new security roles for Credit Management? MSDyn365FO Credit Management, Part 1 – Are there any new workflows available? 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 5 – What’s new in the Customer Fact Box? MSDyn365FO Credit Management, Part 6 – What are Customer Credit Groups and how are they used? If you’re interested in learning more about the logic hierarchy of credit limits and Customer Credit Groups, please Contact Us and feel free to connect on LinkedIn and Twitter!
