AR Credit Limit

Hi List,

At the Customer Master, i found the field "Credit Limit" which i believe allows us to track our customer's credit status. If customer's outstanding invoices exceed the credit limit amount, i expect JDE to place the customer on "credit hold" status and stop all shipments/sales processing until the customer remit payments.

However, in all my testing, i cant seem to get JDE to auto-set the customer credit hold. It seems like JDE will display the customer credit status correctly (after i run the "Credit Analysis Refresh" batch but JDE wont auto-set the hold status for me. Finance team has to monitor the status and manually set the customer on HOLD status.

Has anyone used this feature before? I believe JDE shd have kind of automation to set customers on credit hold, since it can check customer status is exceeding credit limit.

Pls share some ideas. Thanks.

World A7.3

In Sales Order Entry, P4211 and P4201A, there are processing options to specify the use of the Credit Hold function for new orders only. In the Order Hold Information program, P42090, there is the definition of the amount the customer's balance exceeds there outstanding balance. But there is nothing in JDE to actively track the amount that the balance exceeds the Credit Limit.

As well the Credit Hold is only on new orders and does not do too well on order revisions as well, e.g. if an order is released from a specific hold and the amount of the order is changed such that the hold should be reapplied it won't (because the program already finds a release for that type hold). Not that the field office would ever add addtional items to an order after having the order released for a small over due balance.

The problem is not as critical for Distribution Systems but at my prior employee for Manufacturing it was extremely bad because the Work Order would hit the production floor and work would begin.

I have seen a demo of a 3rd party product, MC2 from Klee Associates, that greatly enhances the JDE World Credit Manangement function and I believe that it has additional functionality as well. I can not endorse the product as the demo is all I saw and our company couldn't decide to spend the money. Recently I have seen another ad for Cforia but again I don't know anything about it either.

Thanks for your sharing.

Well, this is for my sales branch so i wont have to worry abt Work Orders released *phew* With all the economic rollercoaster, my mgt has frozen investment for IT projects so any 3rd party applications are not an option for me right now. I have to make do with whatever i have

Where would you expect JDE to have programming logic to place a customer on auto credit hold, and thus stop shipments and sales order processing?=C2 =A0 Where would JDE place the programming logic to take the customer back o ff hold?=C2=A0 If you can spec out a good way for this logic to work, then submit an enhancement request to JDE.=C2=A0 They are certainly looking for customer requested enhancements to improve the product.=C2=A0 This certainl y would be something that some customers would be interested in, I am think ing.
=C2=A0
John Dickey

John,

That is really good news that Oracle is looking for ways to upgrade A7.3. When they had the chance to upgrade A/R they chose to only upgrade the One World version of A/R (remember 03B). So now we are stuck with this version of A/R that is fraught with inadeqacies. Besides if I spec'd out an enhancement for Oracle it would be based on my current system and do you really expect them to listen to me. They don't listen when I call them with valid fixes for bugs that are still in A7.3.

The problem is that A/R is a Financial System and Order Entry is a Distribution System and never the twain shall talk. Also Credit Management is a step-child in the Financial World since everyone runs credit a little different. Now that financial times are tight everyone is looking for ways to manage outstanding credit. Even if we could persuade Oracle to enhance the sytem it would take 2-3 years to see any change and it would be in A9.xx. And congratulations if you are fortunate enough to be at a company running A9.

PS. ericl, don't come back with a lecture about being negative, I am being honest. Also I like JDE as it pays the rent and I have learned to live with the quirks.

EXAMPLE 1. You have a customer that is over its credit limit (as calculated by Credit Analysis Refresh program).

A/R supervisor has released order 6789 for further processing by removing C1 credit hold from F4201 field SHHOLD.

Sales team wants to modify order 6789 and REDUCE the quantity of widgets and reduce the extended price of widgets and the Order Total. Order 6789 will automatically go on Credit Hold again unless you apply my custom code shown below.
If you applied SAR EL26 (written by ERICL) to program P4211 the sales order will NOT go back on hold because SAR EL26 only puts orders back on hold if the order total increases from its former total.
I can make this enhancement available to all of you who have the 'JDE Blues' and those discouraged! EricL

Example #2 for those who have the 'JDE Blues' and others suffering from discouragement!

Your sales team is frustrated that P4211 sales order entry program always puts ALL orders on credit hold when the customer is over its credit limit, even orders of free, no-charge stuff like free promotional sales brochures, Sales Quote Orders, other Orders for No-Charge widgets, and Credit/Return Orders for widgets being returned.
SOLUTION: Apply old SAR EL03 written by ERICL. These order types will no longer go on credit hold because you actually do not want them to go on credit hold anyway.
Yippee! Life is sunny and cheerful. No more JDEblues and no more discouragement!
EricL

Are you saying that if your customer has 50 open orders in the pipeline, and his next order puts him over his credit limit, that you want manufacturing and shipping to put ALL his 50 open orders to a screeching halt and you want JDE stop work on those previously authorized orders, even though those orders were under the credit limit?
Is that why you are feeling blue today?

EXAMPLE #3: F0301 customer master file has the field you can populate to display that customer's PRIOR year sales total when you run the JDE program to close out the year.
And F0301 has the field that is the total of all OPEN orders. But your A/R person wants to see a combined total of Current Year Open combined with Current Year Invoiced. But How?
SOLUTION: Run custom program P550301 each night. It aggregates Current Year Open Orders with Current Year Invoiced. Now your A/R person is happy!

Hi Eric Well i really have the blues now... all those fixes you listed need to be applied etc. We are no longer under JDE support and like i mentioned, mgt has frozen all IT projects. I am not allowed enhancements and have to make do with the current standard JDE features. If credit hold does not automatically change customer status to become on hold once exceed Credit Limit, then i have to create a manual process to control this *sigh* If this was on One World, i could easily do the customization myself.

Thanks for your input.

Hi.

I came across this problem many years ago and came up with a solution.

Create a version of BATCH Back order release...... Yes BACK ORDER RELEASE. set processing option 3 as required, remove the data selection that only processes orders on on back order and add any others that are appropriate, maybe Branch and statuses. Set this to run using sleeper again as required (daily, hourly etc) It will check all orders and do a credit check. Hope this helps

Hi.
I had this same problem several years ago. This is my work around

Create a version of 'Batch back order release' yes BATCH BACK ORDER RELEASE. Set processing option 3 with ab apropriate Credit Hold code.

Remove the data selection on qty on back order and add data selections as required eg Doc types, status, B/P etc.

Set this version to run automatically either by 'jobstream' or sleeper, as required.

Not perfect but it saves mods or new programs

Hope this helps

Hello Nigel

Thanks for your input, but i cant figure out how does a Back Order batch help set customer status to HOLD? *scratches head* I am not looking to stop sales transactions, but the actual Customer Master record to be set on hold.

Hi JDEBLUES. You are correct to scratch your head. The way the program works normally is that it selects only orders on back order and checks to see if there is inventory if there is it will release the order, then if PO 3 is set it will do a credit check (Outstanding AR + Open orders) if this total is above the customers credit limit the order gets held.

This logic still works for all orders Back Ordered or not, so if you remove the data selection on B/O lines and apply the same check the credit check is done and if the total is again greater than the credit limit the order will be held.

Test it.

I assumed that you wanted all unshipped orders to be held if the customer goes over his limit.

Greetings Nigel, thanks for your explanation. I will test this when i get back to office tomorrow. Sounds strange but it is definitely a discovery! Many thanks for sharing

Trust me it works.

The thing to remember JDE has been written over so many years, programs have evolved also ideas. The trick left for those of us left is to make it do stuff it was never designed to do. I guess from your handle you're not a great fan, maybe I'm from the old school. (pre windows)my watch has more power than my first computer, remember the days of comps with 32k memory?? no hard drive?? Use what you've got and make it work

Came up with this solution more than 10 years ago

Check it in your test environment!!!! The nice thing is you can custom your data selections to exclude credit orders and/or doc types as you want

Nigel, it works Thanks so much.

My company doesnt use backorders though, so i am wondering if there is any other impact....

Hi, I had this problem where AR is set with N30 credit days and credit limit = 55,000
and this is the status of the AR when I perform a credit checks
Future
(+) Current 15,229
(+) 31 - 45 788-
(+) 46 - 60 1,108
(+) 61 - 90 2,010
(+) 91 - 120 32-
(+) 121 - 150 3,105
(+) 151 - 999 8,300
(+) Over 999
(=) Balance Due A/R. . 28,931
(+) Open Orders. . . . 13,768
(=) Total Exposure . . 42,698
(-) Credit Limit . . . 55,000
(=) Over Credit Limit.

Though system does not shows that this AR credit limit exceeded - it seems all new orders created for this AR will automatically put on hold with hold code = C1

Please assist to guide me how to check for the reason for this to happen.