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Overview of Credit Management
Overview of Credit Management
Agenda
2. Credit Application: The credit application flow enables personnel to submit credit
application information on behalf of a customer or prospect. There are also business
events that would drive the initiation of a credit review, such as an order being placed
on credit hold due to the pre-calculate credit exposure or an externally defined user
event.
3. Credit Analysis and Decision: Within the credit analysis and decision flow, the case
folder is the central repository for all data, analyst notes, calculated credit scores and
recommendations for the credit review. Because Credit Management is a cross-org
application, data displayed in the case folder for a credit review can show transactions
counts and amounts for all operating units. Also, because Credit Management utilizes
the TCA Relationship Manager hierarchy, the data in a credit review can be consolidated
and calculated for Party / Customer Account and Site levels.
Throughout the credit application and analysis flows, you can Purchase Dun &
Bradstreet data and the information is automatically imported into OCM.
4. Performance: Credit Management provides you with comparison tools that help you
to determine if your credit policies have adequately assessed the creditworthiness of
your customers. You can access simple views into the workload and effectiveness of the
checklists and scoring models that you have set up and used in credit reviews.
Credit Management plays a key role in the revenue and risk management of the user
organization. The assignment of a credit classification to a customer identifies which
revenue recognition rules are applied.
2. Credit Manager:
Setting up Credit Management
All Activities Listed above for Credit Analyst
3. Credit Scheduler:
Workflow related activities in Oracle Credit Management
HRMS Management
System Administrator
CRM Resource Manager
Credit Management Super User
Receivables Manager
Order Management Super User
Credit Scheduler
[Step 1] Run ‘DQM Staging Program’: This program is run from Trading Community
Manager Responsibility and is designed to populate DQM Staging Tables.
Responsibility – Trading Community Manager
2. Populate AR Summary Tables with Transaction Data: There are two summary tables
that need to be populated before using Oracle Credit Management and Oracle
Advanced Collections Applications.
AR_TRX_SUMMARY_ALL: Stores data, such as the count of open invoices and total
invoice value, which is summarized for a specified period of time.
[Step 1] Set the Profile Option ‘AR: Allow Summary Table Refresh’: Change the above
Profile Option to YES at Receivables Application level.
3. Schedule ‘Workflow Backgroung Process’ program: Schedule this process for Item Key
‘AR Credit Management Application Process’. Must be scheduled to run periodically
based upon the ‘turnaround time’ required by the client (From Credit Application
submission to Case Folder creation).
The Credit Profile tab is used to define customer defaults for Credit Management.
• Classification
• Periodic Review Cycle (Optional)
• Credit Analyst (Optional)
• Credit Tolerance (Used if Integrated w/OM)
• Credit Checking (Used if Integration w/OM)
Confirm the Credit Usage Rule Sets are Assigned to your Profile Class / Operating Unit /
Party / Account / Site / Item Category.
1. Credit Analyst Assignment Rules: Credit Management uses the Rules Engine, a
component of the E-Business Suite, to let you define rules that control the correct credit
analyst assignment.
On the Credit Analyst Assignments page, use the Rules List tab to:
• Select a default credit analyst. Credit Management uses this default when no rule
either exists or applies during a particular credit review.
• Define the rules that indicate how credit analysts are automatically assigned to case
folders. Credit Management evaluates the rules that you create in sequential order.
2. Reassigning Credit Reviews: Access the Reassign Credit Reviews page using the
Credit Scheduler responsibility. Enter search criteria, then select one or more reviews
for reassignment. Reassigned reviews appear in assignees’ queues without additional
notification.
Use the Reassign Credit Reviews page to move selected credit applications and case
folders among credit personnel. Reassignment might be necessary to rebalance
workload between credit analysts. You can also use this page to assign credit analysts to
unassigned credit applications.
3. Reassign Credit Analyst Program: Over time, personnel changes might require a
change to the credit analyst who is assigned to an account, credit application, or case
folder. For example, a credit analyst might take a personal leave of absence, or leave the
organization entirely.
Use the Reassign Credit Analyst concurrent program to specify the required analyst
changes. This program executes a mass update on a batch basis, moving a credit
analyst’s entire work queue to another credit analyst’s work queue. This program also
updates the credit analyst assignment in the related customer profile class, so that
future credit reviews automatically reflect the new credit analyst assignment.