Credit Management Blocking Rules Sequencing

Something happened while I wasn't looking and now we have a clearer sequencing of Credit management Blocking rules. This has been a much-needed change, and I am happy to report on it!

Sequencing of Blocking Rules

Credit Management Release to Warehouse Credit Hold Loop

Some big changes were made to Credit management in recent versions that need to be addressed. One of which is the following parameter: 

Bypass inventory reservations

A new parameter has appeared called Bypass inventory reservations, but what does it mean?

Set up Collections Agents and Customer Pools

When setting up the Credit and collections module in your D365 Finance environment, you will want to ensure that your collections team will have access to work with their assigned customers. Logging in and seeing all of the Customers with all of their information can be an overwhelming experience, making it more difficult for your collections team to do their job. D365 Finance allows for the creation of Collections agents with the ability to filter only assigned information.

Credit Management - Automatic Credit Limits

When creating Automatic credit limits, you can create a set of rules that will take specific criteria into account while quickly and easily applying credit limits. Navigate to Credit and collections > Setup > Risk > Automatic credit limits to begin. 

Automatic Credit Limits

When defining Automatic credit limits, you will use the Scoring groups that were created for Risk scores. 

Credit Management - Credit Limit Adjustment Journals

At long last, we finally have controls on Credit limits! Sure, you could set security on the Credit limit field, but it was never my favorite thing that the Credit limit field on the Customer was so easily editable. 

Credit Management - Calculate Risk Scores

Part of the new Credit management feature is the ability to calculate Risk scores for your Customers. There is a little bit of setup initially, but the value that can be derived from calculating a Customer's potential risk is tremendous!

Credit Management - Workflows

New workflows! That's always an exciting phrase to hear. With the introduction of the new Credit management functionality, new workflows have been introduced into the Credit and collections module. You can view them at Credit and collections > Setup > Credit management workflows. The three new workflows that have been introduced are:

Credit Management - Blocking Rules

Within Credit management, a new feature called Blocking rules is introduced. One way I like to explain how Blocking rules work is that they function as more of a "soft" hold against a Customer versus using the Invoice and delivery on hold field to put a Customer on a "hard" hold. I say "soft" and "hard" hold because when you attempt to create a Sales order when the Customer is on hold using Invoice and delivery on hold, you get stopped at order entry. That's it, you cannot proceed any further. With blocking rules, you can still enter a Sales order, but if one of the blocking rules gets activated, then the Sales order goes into a queue for review. That is what I refer to as a "soft" hold.

Parameter Setup

Credit Management - New Fields on Customer Record

One of the great benefits to Credit management is that there is expanded functionality on the Customer record.

Here is a great "Before and After" shot of the Credit and Collections FastTab on the Customer record:

Before Credit management feature was enabled

Credit Management - Customer Credit Groups

One of my favorite features of Credit management is the Customer credit group. This can be accessed by navigating to Credit and collections > Customers > Customer credit groups.

Customer Credit Group

Credit Management - Temporary Credit Limits

One concept in Credit management is the ability to easily apply temporary credit limits to your Customers. This can be done for a variety of reasons such as:

• The customer is displaying at-risk behavior and you want to decrease their credit limit.
• The customer has filed bankruptcy and you want to limit their spending power in your organization.
• The customer wants to make a one-time purchase that is greater than their credit limit, so you give them a temporary increase to accommodate their purchase. 

Whatever your reasons, you need to adjust their credit limits for a period of time before reverting back to their regular credit limit. This is done through Credit limit journals. 

Credit Management Feature

In Dynamics 365 Finance, the new Credit management functionality is part of the Credit management feature that was made GA on April 3, 2020.

https://docs.microsoft.com/en-us/dynamics365-release-plan/2020wave1/dynamics365-finance/credit-management

The link above from Microsoft does a decent job of describing the new functionality from a 10,000 ft view, but what it doesn't describe is the more intricate features of this that will have your Credit and Collections team giddy with joy.