Implementing Order Management (2024)

Use these guidelines to help you set up creditcheck in Order Management.

Determine When to Check Credit

Credit check during order entry or order fulfillment.

Implementing Order Management (1)

Note

Order Management processes credit check differentlyduring order submit or order fulfillment.

Question

Check Credit On Submit

Check Credit During Order Fulfillment

How does Order Management send order lines to CreditManagement?

Send order lines as a group according to bill-tocustomer.

Send one fulfillment line at a time.

What happens when an order line fails credit check?

Order Management does one of these.

  • Place order line on credit checkhold.

  • Lock order line, set status toCredit Review Pending, and wait for credit analyst to review casefolder.

Set fulfillment line to error.

How can an order line that fails credit check proceed?

Order Entry Specialist does one of these.

  • Manually releases hold.

  • Revises the sales order to statusDraft, modifies it, and submits it again.

Do one of these.

  • Order Entry Specialist revisesthe sales order.

  • Credit analyst adjusts credit limit, then Order Management runs a scheduled process that you set up that retries the orchestration process step. The Order Entry Specialist can also manually retry.

Limitations

Credit check happens only for all order lines in theentire sales order. You can't check credit for a single line or onlyfor some lines.

Order Entry Specialist can't modify attributes thataffect credit while the fulfillment line is on credit check hold.Order Entry Specialist can only cancel the line.

Order Entry Specialist can't manually proceed pastthe credit check. Can only retry the step.

Order Management processes credit check differentlydepending on the state of the order lines.

State of Order Lines

Check Credit On Submit

Check Credit During Order Fulfillment

In draft.

Allow all changes.

Make changes, then recheck credit on all lines.

Fulfillment hasn't started, so allow all changes.

Lines are in order fulfillment, and.

  • Before credit check step.

  • In error because credit check failedduring fulfillment.

  • Credit check finished.

Order Management rechecks each line that it checkedearlier during submit. It does the recheck regardless of the change.It creates a new authorization.

Allow all changes. Apply normal change processing.

If Order management finished credit check duringorder fulfillment, and if credit check fails when processing the change,then Order Management doesn't allow the Order Entry Specialist torevise the sales order. You must use error recovery to fix the problem.

In order fulfillment, on credit hold.

If changed attributes.

  • Affectcredit. Reject revision.

  • Don'taffect credit. Recheck credit.

Allow all changes. Apply normal change processing.

Check Credit During Order Fulfillment

Here's when you can check credit during order fulfillment.

  • Your fulfillment cycles run fora long time. For example, run credit check immediately before shippingto make sure credit authorization hasn't expired while process thesales order through fulfillment.

  • You import sales orders from asource system, the source system already checked credit, so you don'twant to check credit again when submitting the order to fulfillment.But you also don't want to send the order to shipping if credit authorizationexpired. A long delay might exist between the time the source systemchecks credit and when the item is ready to ship.

Here's how it works.

Implementing Order Management (2)

Note

  1. Order Entry Specialist clicks Submit.

  2. The orchestration process startsfulfillment, such as schedule inventory, reserve inventory, then reachescredit check step.

  3. If the expiration date of the creditauthorization is expired, or if Order Management hasn't already donecredit check at least one time, then the orchestration process sendsa request to Receivables to do credit check on fulfillment lines.

    • If credit check passes the firsttime Receivables performs credit check, then it creates an authorizationnumber and authorization expiration date.

      Forexample, assume you do credit check during order submit on January1, 2019, credit check passes, and Receivables sets the expirationdate to January 10, 2019. If the orchestration process runs the creditcheck step on.

      • January 2 during fulfillment, thenit won't run credit check again, but will instead proceed to the nextorchestration process step.

      • January 11, then it will run creditcheck again.

    • The orchestration process sendsonly the fulfillment lines that require credit check. It doesn't sendthe entire sales order.

  4. If credit check fails, then thefulfillment line goes into error and processing stops.

    • Credit analyst must adjust creditin Credit Management in Receivables.

    • Orchestration process will runcredit check step again after credit analyst adjusts credit.

Set the Order Management Parameter

Set the value for the Credit Check Failure at Order Submit parameter.

Implementing Order Management (3)

Note

Value

Description

Save Order in Draft Status

Save the sales order in the Draft status. Don't sendany lines to order fulfillment.

Use when.

  • Your sales order includes morethan one value for Bill-to Customer on the order lines, and you mustmove the order to fulfillment only if credit check passes for allbill-to customers.

  • You don't need to do credit checkduring fulfillment.

  • You don't need to release creditcheck hold so fulfillment can continue. You can wait for the creditanalyst to resolve the hold.

Submit Order with Hold on Lines that Failed CreditCheck

Save the sales order in Processing status, placea hold on each order line that fails credit check, then send orderlines that aren't on hold to fulfillment.

Use when.

  • Your sales orders sometimes includemore than one value for Bill-to Customer on the order lines, and youmust move the order to fulfillment even if credit check fails forsome or all bill-to customers.

    For example, ifcredit check for Bill To Customer x succeeds, and if credit checkfor Bill To Customer y fails, then Order Management can send orderlines for customer x to order fulfillment, and place order lines forcustomer y on hold.

    If order lines include only one Bill To Customervalue, then Order Management uses the order total when it checks credit.

  • You don't revise attributes thataffect credit check, or you might cancel the failed lines.

  • You must release credit check holdso fulfillment can continue, even if you must manually release thehold.

Frequent Implementation Questions

Question

Description

Why does Order Management place a credit check hold on the fulfillment line instead of on the order header when all fulfillment lines of the sales order fail credit check?

The orchestration process orchestrates and OrderManagement tracks each fulfillment line separately so they can optimizefulfillment.

For example, if supply is available for lines x andy but not z, then it can reserve supply and move to the next orchestrationprocess step for x and y.

If Order Management placed the hold on the salesorder instead of the fulfillment lines, then it would have to pauseorchestration for all lines while it waits for supply to become availablefor z.

How can we allow fulfillment lines that are on creditcheck hold to proceed beyond scheduling?

Manually release the credit check hold. To make sureyou don't ship a line that fails credit check, add another orchestrationprocess step that does credit check. Add it after the scheduling step.

Assume credit check fails during fulfillment andthe credit check step is in error. Can we manually get that line pastthe credit check step?

You must retry the step and it must pass credit checkso the fulfillment line can move forward in the flow.

You can't manually remove a hold because Order Managementdoesn't place a hold when credit check fails during fulfillment. Itonly places the line in error.

Can I set up my orchestration process so we don't do a credit check according to the type of sales order? For example, I create a task type named Skip Credit Check, and then add a condition to my orchestration process:

If task type equals Skip Credit Check, the release pause tasks that are on only because of credit check.

You can't set up an orchestration process that skips credit check according to the type of sales order.
Implementing Order Management (2024)

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