Credit Check Setup

12/18/2014 Document
744642.1
Credit Checking Setup in Order Management (Doc ID 744642.1)
In this Document
Purpose
Scope
Details
Setup Steps
Test flow Steps
References
APPLIES TO:
Oracle Order Management Version 11.5.9 to 12.2.3 [Release 11.5 to 12.2]
Information in this document applies to any platform.
***Checked for relevance on 3Apr2014***
PURPOSE
The purpose of this bulletin is to provide Oracle Customers with a good basic understanding of
Credit Checking in Order Management setup.
SCOPE
This document helps Support Engineers and Oracle Customers to understand basic credit check
concepts within Order Management.
Screen shots in this note are from R12.2.3 Vision instance.
Scenario: In this test flow, we will setup a credit limit of $5000 for the billtosite for an existing
customer A. C. Networks.
We will verify in this test case that the order goes on credit check hold when the order amount
surpasses the credit limit.
* This test flow assumes that you are working in a Vision environment.
* The Setup steps include the relevant setup needed to create credit checking test case. Some
of these steps only require viewing the setup that already exists in the Vision environment. If
you have already gone through the Setup steps once, you can go directly to the Test flow Steps
to perform your test case.
DETAILS
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12/18/2014 Document 744642.1
Setup Steps
In order to trigger automatic Credit checking on sales orders it is necessary that the credit
checking is enabled for the order type, customer profile and payment terms associated with the
transaction. Credit check set up involves the following setup steps:
Step 1: Credit Check Rules Setup
Step 2: Customer Profiles Setup
Step 3: Payment Terms Setup
Step 4: Order Types Setup
If any one of order type, customer profile and payment terms does not have credit checking
enabled, the sales order will not be credit checked . Sales orders that pass credit check at all
the three points are allowed to progress normally. Those that fail will have credit check failure
hold placed on either the order header or order lines.
Login
User/Password : OPERATIONS / WELCOME
Responsibility : Order Management Super User, Vision Operations (USA)
Step 1 : Credit Check Rules Setup
(N) Setup > Rules > Credit
In the rules window enter 'CoE Credit Check Rule'.
In the effective dates field enter today’s date (optional) as the starting date and leave the end
date as blank.
In the credit check level drop down list, Select Sales order.
In the Credit hold level drop down list select the Sales order option.
Choose the conversion type as corporate.
Accept all other defaults and save your rule and close the window.
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Step 2 : Customer Profiles Setup
(N) Customer > Standard
Enter the Registry ID as '1143' and click 'Go' button.
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Click on Customer Name hyperlink to open the customer. Scroll down to the Bill To address you
wish to use. Click on the address' Details button.
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Open the Bill To. Click on the address' Details button.
The conditions for the site level credit check is as follows
After 11.5.10 CU2.
* If Credit Check not enabled(site level) => Go for Customer level
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* If Credit Check is enabled and both credit limit and order credit limit are NULL/BLANK =>
Go for Customer level
* If Credit Check is enabled and either credit limit or order credit limit is NOT NULL => i.e If
site level profile is created, it follows the hierarchy mentioned in the Note 365866.1
In (T) Profile: Transaction ensure the Credit Check box is checked and note Payment Terms.
In (T) Profile Amounts, '''select the currency USD''' and change the order credit limit to 5000
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Save your work and exit the form.
Step 3: Payment Terms Setup
(N) Setup > Orders > Payment Terms
Query for the Payment Term 30 Net and ensure that the credit check check box is selected.
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Save your work and exit the form.
Step 4: Order Types Setup
(N) Setup > Transaction Types > Define
Query for the Transaction Type Mixed and once the record is retrieved choose the credit check
rule
"CoE Credit Check Rule" created in the previous step in the credit check rule region in the
ordering field.
This indicates that when the order is booked, the credit check rule will be applied and when the
order amount exceeds the credit limit then a hold will be applied.
12/18/2014 Document 744642.1
Save your work and close the window.

Test flow Steps
(N) Order Returns > Sales Order
Enter the customer number as '1143' and ensure that the order type is 'Mixed'.
Also ensure the Bill To Location is the address for which you have set up credit checking.
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Click on the others tab and ensure the Payment Terms is selected as '30 Net'.
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Click on the Line Items tab and enter the line details with order qty as 4 and ensure that the
total value exceeds $ 5000.
Save the transaction.
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Click on Book Order Button. The pop up window appears showing that a credit hold has been
applied based on the site profile.
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Re query the order and click on the actions button to choose Additional Order Information and it
shows that a credit hold has been applied based on the site level credit profile.
To release the credit check hold, go to Actions>Release Holds, enter a Reason, and click on
Release.
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This completes the steps for the Credit Checking test flow
Still Have Questions?
To discuss this information further with Oracle experts and industry peers, we encourage you to
review, join or start a discussion in the My Oracle Support Order Management EBS Community.
Let us know your feedback!
We hope you find this information useful. Our desire is to provide the right information when
you need it. Please let us know how we are doing. To provide feedback on this note:
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REFERENCES
NOTE:365866.1 Credit Checking Limits Hierarchy
NOTE:436483.1 ORDER MANAGEMENT SUITE INVOICING LIBRARY

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