In this next part of credit management, we will try to understand list of blocking rules available against which sales order transaction can be evaluated.

If you have not gone through Part-1, Click here

When a customer initiates a sales transaction, the information on the sales order is reviewed against a set of blocking rules that guide the decision of whether to extend credit to the customer and allow the sale to move forward.

You can also define exclusions that will override the blocking rules and allow a sales order to be processed. You can set up blocking rules and exclusion rules on the Credit management > Setup > Credit management setup > Blocking rules page.

Note: As of version 10.0.21, the blocking rules in Credit management have been re-architected in the following ways, to provide more flexibility:

• Extensibility requests have been enabled, so that you can create your own blocking rules.
• The Release sales order checkbox is now available for all blocking rules. Previously, it was available only for the Sales order blocking rule. When this checkbox is selected, the exclusion rule will release the sales order without considering any other rules that can block sales orders. This checkbox is available only for the Exclusion rule type.

Note: All the rules can be defined at Customer, Credit management group (Which can be mapped to customer or All.

Note: We can define blocking as well as exclusion for exceptions where blocking rules should not be evaluated.

We have total Seven blocking rules available:

1. Portion of available credit used

2. Sales order amount

3. Overdue amount

4. Credit limit expired

5. Terms of payment

6. Accounts status

7. Number of days overdue

In addition, there are two parameters that control additional scenarios that will block a sales order

1. Change in payment terms

You can put a sales order on hold if the payment terms on the order don’t match the default payment terms for the customer. However, sometimes the payment terms differ but are similar enough that you don’t want to put the order on hold. You can rank payment terms so that some of them have the same rank, whereas others have a higher or lower rank.

If the rankings for payment terms are active, and if the payment terms on the order have a higher rank than the default payment terms for the customer, the sales order will be put on hold.

To set up the payment terms ranking go to Credit and collections > Setup > Credit management setup >Rank payment terms

2. Change in settlement discounts

If rankings for settlement discounts are active, and if the cash discount on the order has a higher rank than the default cash discount for the customer, the sales order will be put on hold.

To set up the payment terms ranking go to Credit and collections > Setup > Credit management setup >Rank settlement discounts

That’s it for this blog, Thank you Keep Reading and sharing !!!