top of page

Credit Management Part 5 - Automatic Credit Limits and Customer Fact Box

Updated: Nov 2, 2023

Tip of the Day: In Microsoft D365 Finance and Supply Change (D365 F&SC), Part 5 What’s in Credit Management? This blog is the next part of a multi-part blog series detailing the Credit Management functionality in Dynamics 365 for Finance and Operations. Look for additional releases in this series!


To advance your consulting skills, let me share my Microsoft Dynamics D365 F&SC expertise with you by signing for my post notifications at www.intraclouddynamics.com or www.aliciakeener.com or subscribe to my YouTube Channel @aliciakeener6544



What are Automatic credit limits?


Automatic credit limits allow you to setup rules by Risk group to calculate what the customer’s credit should be based on the criteria and then assign Credit limit to the customer(s).

To setup the Automatic credit limits rules, go to Credit and collections > Setup > Credit management setup > Risk > Automatic credit limits (see example below).



To add a new Automatic credit limit, click New > select the Risk group and Currency > in the Lines section click Add. Here you’re going to add lines to make up the rule.

To execute the logic so that the Automatic credit limit rules are applied to selected customers or groups of customers, use the Generate > Automatic credit limits option in the Credit limit adjustments program.

For example, if a customer has a D&B (Dunn and Bradstreet) value of A1, then, they get an Automatic credit limit of $400K. If a customer has a D&B value of A2, then, they get an Automatic credit limit of $300K. If a customer has a D&B value greater than A2, then, they get an Automatic credit limit of $10K.



What’s in the Customer Fact Box?


A new Credit statistics fact box has also been added to the customer record. The fact box shows key information. One thing to keep in mind, you do need to click the Refresh button (the Refresh was added for performance).

  • Highest balance date – This is the date where the customer owed you the most money.

  • DSO (6 months) – This is the average Days Sales Outstanding (DSO) for the timeframe in parentheses. The setup for this logic is in Credit and collections management parameters.

  • DSO (12 months) – This is the average Days Sales Outstanding (DSO) for the timeframe in parentheses. The setup for this logic is in Credit and collections management parameters.

  • Average payment days – This is the average number of days it takes this customer to pay their invoices.

  • Avg balance (6 mths)– This is the average balance for the timeframe in parentheses. The setup for this logic is in Credit and collections management parameters.

  • Avg balance (12 mths)– This is the average balance for the timeframe in parentheses. The setup for this logic is in Credit and collections management parameters.

  • Credit rating – This is the user defined field that shows on the Credit and collections fast tab.

  • Risk score – This is the Risk score from the Risk scores screen.

  • Risk group – This is the Risk group from the Risk scores screen.

  • Credit limit – This is the Total credit limit that shows on the Credit and collections fast tab.

  • Exposure – This is the Credit limit that shows on the Credit and collections fast tab.

  • Average % of credit limit – Based on the amount of money the customer has spent, this is the average percentage they have used of their Total credit limit.


For example, if a customer’s Total credit limit is $650,000, and on average they’ve spent $200,000, then their Average % of credit limit would be 30.77%.

§ Average % of exposure – Based on the amount of money the customer has spent, this is the average percentage they have used of their Credit limit.


For example, if a customer’s Credit limit is $550,000, and on average they’ve spent $200,000, then their Average % of exposure would be 36.36%.





Yorumlar

5 üzerinden 0 yıldız
Henüz hiç puanlama yok

Puanlama ekleyin
bottom of page