Credit Hold in Credit Management in Microsoft Dynamics 365 Finance and Operations: Part-3

Now in this blog we will understand what credit hold is, how it is managed. If you have not gone through previous parts of this series, then read here Part-1 and Part-2

Credit hold is kind of exception queue where if any transaction gets block due to defined/ applicable blocking rule gets created. Now in this queue we can monitor and take necessary action.

  1. Release (Approve Credit hold exception)
  2. Reject
  3. Evaluate for release

Sequence the application of rules

  • One instance of the Sales order exclusion rules lets you override all rules that might block a sales order. Create a sales order exclusion rule and mark the Release Sales order option. The order will not be put on hold if that exclusion rule is true, and no other rules will be checked.
  • Blocking rules can place the order on hold.
  • Exclusion rules are run after blocking rules. Exclusion rules will only affect the rule on which they are defined.
  • Blocking and exclusion rules are run in Table, then Group, then All order. Because of this order of processing, it is possible to have a blocking rule at the All level that will not be run because an exclusion rule at the Table or Group level is run
  • Exclusions do not override the blocking rule if they are at the same level. For example, an exclusion rule at the group level will not override the blocking rule at the group level. You will not need to set up exclusions at the All level except as noted above with the one instance of the sales order exclusion rule.

The behaviour of the Credit limit used rule will change based on the settings for the Check credit limit for sales order parameter found in the Credit and Collections parameter form.

  • If the parameter is set to No, then the Credit limit used rule will not be run.
  • If the parameter is set to Yes and the Message when exceeding credit limit is set to warning, then you will get a warning when the credit limit is exceeded. The Credit limit used rules will be run to see if you have rules that you want to be run. However, for this scenario, you would normally not add any rules
  • If the parameter is set to Yes and the Message when exceeding credit limit is set to error, then the credit limit will be checked, and the order will be put on hold if credit limit is exceeded. In addition, the Credit limit used rules will be run to see if there are additional rules that should be run. An error message won’t display, but the Exceeded credit limit blocking reason will be shown

Settings that will change the way an order is placed on hold

Orders can be excluded from credit management even if there are rules in place.

  • If you change the settings Exclude customer from credit management in All customers > Select a customer > Credit and collections FastTab to Yes, then no orders for that customer will be processed
  • If you change the value Exclude from credit management on the sales orders header in the Credit management fast tab to Yes, then the credit management rules will not be processed. This setting can only be done by the credit clerk or credit manager.

Note: Credit management can only be used currently for sales orders. Free text invoices, point of sales orders and call center orders will use the temporary credit limits and insurance/guarantees that you add to adjust the credit limit. They will not use the blocking rules and they will not be placed in the hold list if there is an issue with the credit limit.

There is no support for project invoices in credit management

That’s it for this blog. Thank You !!! Keep Reading and Sharing !!!

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