Menu Path: Credit and Collections Module Setup Credit Group Credit Rule Maintenance
Define valid credit groups and credit divisions.
Set up default credit rules.
Use Group Credit Rule Maintenance to define valid credit groups and credit divisions. Credit groups and credit divisions can be used for the following purposes:
Creating default credit checking options (to avoid having to set these up individually for every credit customer)
Analyzing data - Credit groups and credit divisions are available in Credit Management Business Intelligence.
Every credit customer must be assigned to a credit group and a credit division.
Note Organize credit customers into logical credit groups and credit divisions. For example, you could use credit groups to group credit customers that have the same credit checking rules. You could use credit divisions to group credit customers that are in the same industry.
For database information for this window, see Group Credit Rule Maintenance Database Information.
To create a credit group or credit division:
Select the Credit Group or Credit Division radio button.
Click the New button in the ribbon.
Enter the ID and name for the credit group or credit division.
Enter the key credit rules for the credit group or credit division.
Click the Payment Terms tab.
Enter the standard and credit memo payment terms.
Select the other credit rules for the credit group or credit division on the other tabs.
Click the OK button in the ribbon. The credit group or credit division is created.
To update a credit group or credit division:
Select the Credit Group or Credit Division radio button.
Enter the credit group or credit division ID in the Credit Group ID or Credit Division ID field.
Click the Update button in the ribbon.
Edit the credit rules for the credit group or credit division.
Click the OK button in the ribbon. The credit group or credit division is updated.
To delete a credit group or credit division:
Select the Credit Group or Credit Division radio button.
Enter the credit group or credit division ID in the Credit Group ID or Credit Division ID field.
Click the Delete button in the ribbon.
Click the OK button in the ribbon. The credit group or credit division is deleted.
Note You cannot delete a credit group or credit division if it has already been assigned to a credit customer.
Button |
Description |
Exit |
Click this button to close the Group Credit Rule Maintenance window. |
New |
Click this button to create a new credit group or credit division. |
Update |
Click this button to update the selected credit group or credit division. |
Delete |
Click this button to delete the selected credit group or credit division. |
OK |
Click this button to accept an action. This button is only available after you click the New, Update, or Delete button in the ribbon. |
Cancel |
Click this button to cancel an action. This button is only available after you click the New, Update, or Delete button in the ribbon. |
First |
Click this button to display the first credit group or credit division. |
Prev |
Click this button to display the previous credit group or credit division. |
Next |
Click this button to display the next credit group or credit division. |
Last |
Click this button to display the last credit group or credit division. |
Credit Change History |
Click this button to display Credit Change History Inquiry, which allows you to view changes made to credit rules for the selected credit group or credit division. This button is only available if the Key Rules tab is displayed. |
Field or Button |
Description |
Select whether to view, create, update, or delete credit groups or credit divisions. |
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Click the Lookup button to select the currency for all amounts displayed in this window. This defaults to the default general ledger currency. The Lookup button is disabled when you are creating, updating, or deleting a credit group or credit division. |
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Enter the credit group ID or credit division ID, or click the Lookup button to select an existing credit group ID or credit division ID. |
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Enter a name for the credit group or credit division. |
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Enter a number for the display sequence if you want the credit group or credit division to display in an order other than by ID. |
Field or Button |
Description |
Enter the amount that a sales order can be increased before being credit checked again. Example The credit check update limit is set to 300. The sales order is 1000. An update is made to the sales order which increases it to 1500. In this case, the update amount is 500, which exceeds the update limit of 300, so the system performs a credit check. If the credit limit is exceeded, the order is put on credit hold. |
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Select this check box if when backorders are released (allocated), you want related sales orders to be credit checked, if the backorder credit date has passed. |
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Enter the number of days since the sales order was placed (or backorders released) to wait before credit checking a backorder. This is used to calculate the backorder credit date. |
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Enter the amount of credit insurance. This is informational only, and does not affect any accounts receivable processing. |
Field or Button |
Description |
Enter the standard payment terms to use for sales order entry, and manual invoice and debit memo entry, or click the Lookup button to select the payment terms. This defaults to Net 30 payment terms if it exists. |
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Enter the standard payment terms to use for return order entry, and manual credit memo entry, or click the Lookup button to select the payment terms. |
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Select this check box if the credit group or credit division is approved for finance terms. |
Field or Button |
Description |
Enter the number of days to include in the past due bucket you are creating. These past due buckets are displayed for credit customers in Credit Hold Inquiry. Example If the first past due bucket being created is 1-15 days past due, enter 15. If the 2nd past due bucket being created is 31-40 days, enter 10. Note The last bucket must contain 999 past due days. This will help prevent situations where significantly past due transactions might be excluded. |
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Enter the priority assigned to a credit hold task in Credit Task Management if one of the credit hold reasons is past due. |
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Click this button to add another past due bucket to the Credit Aging grid. |
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Click this button to remove the selected past due bucket from the Credit Aging grid. |
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This grid displays credit aging buckets for the credit group or credit division. This grid includes the following columns:
Example If the first past due bucket is for 1-15 days past due, then this bucket is bucket 1.
Example If the first past due bucket being created has 15 past due days, then the label defaults to 1-15 .
This defaults to buckets of 30, 30, 30, and 999 days. |
Field or Button |
Description |
Select this check box to allow orders to be entered for credit customers in the credit group or division. Example If customer A and customer B are linked to credit customer C in credit group D, and this check box is cleared for credit group D, you cannot enter a sales order for customers A, B, or C. |
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Click the Lookup button and select one of the following options:
Example For a credit group that includes Wal-Mart and similar credit customers, you may select None because of the size and creditworthiness of such companies. |
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Enter the number of days that controls whether a future credit check for a sales order occurs. Example If you enter 30, then the sales order will not be credit checked until the required date is within 30 days of today’s date. This keeps future sales orders from using up a current credit limit. |
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Select this check box to put sales orders on credit hold if the credit score for a credit customer is less than the minimum credit score entered in the Minimum Credit Score field. |
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Enter the minimum credit score below which orders are put on credit hold. Orders only go on credit hold if you select the Credit Score Hold check box. Example The minimum credit score is 65. A sales order entered for a credit customer that has an actual credit score of 50 is put on credit hold. |
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Select this check box to put sales orders for inactive credit customers on credit hold based on the number of days since the last order entered in the Days Since Last Order field. |
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Enter the number of days since the last invoice after which orders are put on credit hold. Orders only go on credit hold if you select the Inactive Customers Hold check box. Example You enter 90 in this field. If today is 6/30/2020, then if there has been no order placed since 4/1/2020, a placed sales order goes on credit hold. |
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Select this check box to put sales orders on credit hold if there has been an NSF payment for the related paying customer based on the number of days in the Days Since Last NSF Payment field. |
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Enter the number of days since the last NSF payment for a related paying customer to put orders on credit hold. Orders only go on credit hold if you select the NSF Payment Hold check box. Example You enter 60 in this field. If today is 6/30/2020, then a NSF payment made since 5/1/2020 will result in the sales order going on credit hold. |
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Select this check box to put sales orders for a specific order class on credit hold if they are greater than a specific threshold amount. If you select this check box, enter the order class in the Order Class field and the threshold amount in the Order Class Threshold Amount field. |
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Enter an order class for which to put sales orders on credit hold (for order amounts greater than the amount entered in the Order Class Threshold Amount field), or click the Lookup button to select an order class. Orders only go on credit hold if you select the Order Class Hold check box. |
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Enter the amount greater than which orders of the order class entered in the Order Class field go on credit hold. Orders only go on credit hold if you select the Order Class Hold check box. Example You enter 1000 in this field and enter DS in the Order Class field. An order placed for 1200 for order class DS is put on credit hold. |
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Click the Lookup button to select the monetary amount for credit card authorizations for the credit group or credit division. Select one of the following:
For information on how this setting affects credit card transactions, see Credit Card Orders. |
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Enter the percentage over the amount for allocated products to authorize during pick demand creation. This percentage should account for the following:
If this field is blank, the percentage entered in Customer Service Control Maintenance is used. |
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Select this check box to put sales orders on credit hold if the payment terms for the sales order are different than the default payment terms for a customer. Example The default payment terms are Net/30. A sales order entered with payment terms of Net/60 is put on credit hold. |
Field or Button |
Description |
Select this check box to put sales orders on credit hold if the adjusted past due balance is greater than or equal to the amount entered in the Minimum Past Due Balance field or the percentage entered in the Minimum Past Due Percentage field. |
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Enter the number of days to add to the due date before considering it past due for calculating a past due hold. Example The due date for an invoice is 6/30/2020 and the grace days is 7. The invoice is not considered past due for purposes of the past due hold until 7/8/2020. |
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Enter the minimum past due balance that will trigger a past due hold. Note This rule will only be used if the balance is greater than 0. If a percentage is also entered in the Minimum Past Due Percentage field, then both rules must be passed for credit checking purposes. Example The minimum past due balance is 100. The adjusted past due balance is 75. A sales order will not go on past due credit hold. |
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Enter the minimum past due percentage that will trigger a past due hold. Note This rule will only be used if the percentage is greater than 0. If an amount is also entered in the Minimum Past Due Balance field, then both rules must be passed for credit checking purposes. Example The minimum past due percentage is 10%. The adjusted past due balance is 200 and the total accounts receivable balance is 1,000 (so the past due percent is 20%). A sales order will go on past due credit hold. Example The minimum past due percentage is 10% and the minimum past due balance is 100. The adjusted past due balance is 200 and the total accounts receivable balance is 1,000 (so the past due percentage is 20%). The sales order will go on past due credit hold because both the balance and the percentage rules were violated. |
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Select this check box to include finance charges in the calculation of adjusted past due balance. |
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Select this check box to include disputed invoices in the calculation of adjusted past due balance. |
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Select this check box to include chargebacks in the calculation of adjusted past due balance. |
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Select this check box to use unapplied payments as offsets in the calculation of adjusted past due balance. |
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Select this check box to use on-account transactions as offsets in the calculation of adjusted past due balance. |
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Select this check box to use credit memos as offsets in the calculation of adjusted past due balance. |
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Select this check box to allow the collection team to release orders from credit hold if the only credit hold condition is a past due hold. This is sometimes used by larger organizations that have a credit department separate from a collection department. The collection team is sometimes given this option, and these orders appear in Collection Task Management. Example An order goes on hold for credit limit and past due conditions. This order can only be released by the credit team. An order goes on hold for past due conditions only. This order can be released by the credit team or the collection team if you select this check box. |
Field or Button |
Description |
Select this check box to put sales orders on credit hold if the adjusted accounts receivable balance plus the amount on open sales orders exceeds the credit limit. |
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Enter the basic amount of the credit limit authorized for a credit customer in the credit group or credit division. |
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Enter the overage percentage to create an over limit credit task. This acts as an additional credit safeguard. If a credit user has credit approval for up to 5,000 (per order), then multiple orders under 5,000 could be approved to drive the total credit exposure to significantly exceed the credit limit. When the credit limit is exceeded beyond this overage percentage, an over limit credit task is created. An over limit credit task only gets closed automatically when the total credit exposure falls below the credit limit overage. Example The credit limit is 100,000 for credit customer A. The customer's credit limit overage percentage is 10%. When the credit exposure exceeds 110,000 for credit customer A, an over limit credit task is created. Note In Credit Task Management when an order is released from a credit limit credit hold, if the customer has an over limit credit task, a warning message appears. |
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Select this check box if you want disputed invoices to be included in the calculation of adjusted accounts receivable in the determination of the credit limit hold. |
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Select this check box if you want chargebacks to be included in the calculation of adjusted accounts receivable in the determination of the credit limit hold. |
Field or Button |
Description |
Select this check box to create credit tasks for credit alerts. For more information, see Credit Task Refresh. Note Unless you are importing payment statistics data, you should not select this check box until you have sufficient data for the comparison months you plan to use. |
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Enter the number of previous full months to use for credit alert calculations. The current month-to-date numbers are additionally used in the calculations. Example You enter 3 in this field. If it is July 5th, April, May, June, and July (to-date) combined statistics are compared to the low and high trigger values. The next previous 3-month period of January, February, and March is used to determine the trend percentage, and is compared to the low and high trend percentage trigger values. |
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Enter the average days to pay (ADTP) low trigger amount. When the ADTP is equal to or less than this amount for the comparison months, a credit task is created in Credit Task Refresh. Example You enter 30 in this field. If the actual ADTP for the comparison months is 35, no credit task is created. |
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Enter the average days to pay (ADTP) high trigger amount. When the ADTP is equal to or higher than this amount for the comparison months, a credit task is created in Credit Task Refresh. Example You enter 40 in this field. If the actual ADTP for the comparison months is 45, a credit task is created in Credit Task Refresh. |
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Enter the average days to pay (ADTP) trend lower percentage. Based on the comparison months, the average ADTP is calculated for the most recent comparison month period and compared to the next previous comparison month period. If the most recent ADTP is less than the next previous ADTP by this percentage or more, then a credit task is created in Credit Task Refresh. Example You enter -10 in this field and 3 in the Comparison Months field. It is July 5th and the average ADTP from April-July 5th is 45 and from Jan-Mar is 48. So, the most recent ADTP of 45 minus the next previous ADTP of 48 is -3 days. -3 days divided by 48 equals a -6% trend. Since -6% is greater than the -10% trigger, this trend will not create a credit task. |
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Average Days to Pay (Trend Higher %) |
Enter the average days to pay (ADTP) trend higher percentage. Based on the comparison months, the average ADTP is calculated for the most recent comparison month period and compared to the next previous comparison month period. If the most recent ADTP is greater than the next previous ADTP by this percentage or more, then a credit task is created in Credit Task Refresh. Example You enter 10 in this field and 3 in the Comparison Months field. It is July 5th and the average ADTP from April-July 5th is 50 and from Jan-Mar is 35. So, the most recent ADTP of 50 minus the next previous ADTP of 35 is 15 days. 15 days divided by 35 equals a 43% trend. Since 43% is more than the 10% trigger, this trend will create a credit task in Credit Task Refresh. |
Enter the Weighted Average Days to Pay (WADTP) low trigger amount. When the WADTP is equal to or less than this amount for the comparison months, a credit task is created in Credit Task Refresh. Example You enter 30 in this field. If the actual WADTP for the comparison months is 35, no credit task is created. |
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Enter the Weighted Average Days to Pay (WADTP) high trigger amount. When the WADTP is equal to or higher than this amount for the comparison months, a credit task is created in Credit Task Refresh. Example You enter 40 in this field. If the actual WADTP for the comparison months is 45, a credit task is created. |
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Weighted Average Days to Pay (Trend Lower %) |
Enter the Weighted Average Days to Pay (WADTP) trend lower percentage. Based on the comparison months, the average WADTP is calculated for the most recent comparison month period and compared to the next previous comparison month period. If the most recent WADTP is less than next previous WADTP by this percentage or more, then a credit task is created in Credit Task Refresh. Example You enter -10 in this field and 3 in the Comparison Months field. It is July 5th and the average WADTP from April-July 5th is 45 and from Jan-Mar is 48. So, the most recent WADTP of 45 minus the next previous WADTP of 48 is -3 days. -3 days divided by 48 equals a -6% trend. Since -6% is greater than the -10% trigger, this trend will not create a credit task. |
Enter the Weighted Average Days to Pay (WADTP) trend higher percentage. Based on the comparison months, the average WADTP is calculated for the most recent comparison month period and compared to the next previous comparison month period. If the most recent WADTP is less than next previous WADTP by this percentage or more, then a credit task is created in Credit Task Refresh. Example You enter 10 in this field and 3 in the Comparison Months field. It is July 5th and the average WADTP from April-July 5th is 50 and from Jan-Mar is 35. So, the most recent WADTP of 50 minus the next previous WADTP of 35 is 15 days. 15 days divided by 35 equals a 43% trend. Since 43% is more than the 10% trigger, this trend will create a credit task in Credit Task Refresh. |
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Enter the Average Days Past Due (ADPD) low trigger amount. When the ADPD is equal to or less than this amount for the comparison months, a credit task is created in Credit Task Refresh. Example You enter 5 in this field. If the actual ADPD for the comparison months is 8, no credit task is created. |
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Enter the Average Days Past Due (ADPD) high trigger amount. When the ADPD is equal to or higher than this amount for the comparison months, a credit task is created in Credit Task Refresh. Example You enter 15 in this field. If the actual ADPD for the current month is 20, a credit task is created in Credit Task Refresh. |
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Enter the Average Days Past Due (ADPD) trend lower percentage. Based on the comparison months, the average ADPD is calculated for the most recent comparison month period and compared to the next previous comparison month period. If the most recent ADPD is less than the next previous ADPD by this percentage or more, then a credit task is created in Credit Task Refresh. Example You enter -10 in this field and 3 in the Comparison Months field. It is July 5th and the average ADPD from April-July 5th is 5 and from Jan-Mar is 8. So, the most recent ADPD of 5 minus the next previous ADPD of 8 is -3 days. -3 days divided by 8 equals a -37% trend. Since -37% is less than the -10% trigger, this trend will create a credit task in Credit Task Refresh. |
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Average Days Past Due (Trend Higher %) |
Enter the Average Days Past Due (ADPD) trend higher percentage. Based on the comparison months, the average ADPD is calculated for the most recent comparison month period and compared to the next previous comparison month period. If the most recent ADPD is greater than the next previous ADPD by this percentage or more, then a credit task is created in Credit Task Refresh. Example You enter 10 in this field and 3 in the Comparison Months field. It is July 5th and the average ADPD from April-July 5th is 50 and from Jan-Mar is 35. So, the most recent ADPD of 50 minus the next previous ADPD of 35 is 15 days. 15 days divided by 35 equals a 43% trend. Since 43% is more than the 10% trigger, this trend will create a credit task in Credit Task Refresh. |
Enter the Weighted Average Days Past Due (WADPD) low trigger amount. When the WADPD is equal to or less than this amount for the comparison months, a credit task is created in Credit Task Refresh. Example You enter 30 in this field. If the actual WADPD for the comparison months is 35, no credit task is created. |
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Enter the Weighted Average Days Past Due (WADPD) high trigger amount. When the WADPD is equal to or higher than this amount for the comparison months, a credit task is created in Credit Task Refresh. Example You enter 40 in this field. If the actual WADPD for the comparison months is 45, a credit task is created in Credit Task Refresh. |
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Weighted Average Days Past Due (Trend Lower %) |
Enter the Weighted Average Days Past Due (WADPD) trend lower percentage. Based on the comparison months, the average WADPD is calculated for the most recent comparison month period and compared to the next previous comparison month period. If the most recent WADPD is less than the next previous WADPD by this percentage or more, then a credit task is created in Credit Task Refresh. Example You enter -10 in this field and 3 in the Comparison Months field. It is July 5th and the average WADPD from April-July 5th is 5 and from Jan-Mar is 8. So, the most recent WADPD of 5 minus the next previous WADPD of 8 is -3 days. -3 days divided by 8 equals a -37% trend. Since -37% is less than the -10% trigger, this trend will create a credit task in Credit Task Refresh. |
Enter the Weighted Average Days Past Due (WADPD) trend higher percentage. Based on the comparison months, the average WADPD is calculated for the most recent comparison month period and compared to the next previous comparison month period. If the most recent WADPD is greater than the next previous WADPD by this percentage or more, then a credit task is created in Credit Task Refresh. Example You enter 10 in this field and 3 in the Comparison Months field. It is July 5th and the average WADPD from April-July 5th is 50 and from Jan-Mar is 35. So, the most recent WADPD of 50 minus the next previous WADPD of 35 is 15 days. 15 days divided by 35 equals a 43% trend. Since 43% is more than the 10% trigger, this trend will create a credit task in Credit Task Refresh. |
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Enter the Days Sales Outstanding (DSO) low trigger amount. When the DSO is equal to or less than this amount for the comparison months, a credit task is created in Credit Task Refresh. Example You enter 5 in this field. If the actual DSO for the comparison months is 8, no credit task is created. |
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Enter the Days Sales Outstanding (DSO) high trigger amount. When the DSO is equal to or more than this amount for the comparison months, a credit task is created in Credit Task Refresh. Example You enter 5 in this field. If the actual DSO for the comparison months is 3, no credit task is created. |
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Enter the Days Sales Outstanding (DSO) trend lower percentage. Based on the comparison months, the average DSO is calculated for the most recent comparison month period and compared to the next previous comparison month period. If the most recent DSO is less than the next previous DSO by this percentage or more, then a credit task is created in Credit Task Refresh. Example You enter -10 in this field and 3 in the Comparison Months field. It is July 5th and the average DSO from April-July 5th is 5 and from Jan-Mar is 8. So, the most recent DSO of 5 minus the next previous DSO of 8 is -3 days. -3 days divided by 8 equals a -37% trend. Since -37% is less than the -10% trigger, this trend will create a credit task in Credit Task Refresh. |
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Enter the Days Sales Outstanding (DSO) trend higher percentage. Based on the comparison months, the average DSO is calculated for the most recent comparison month period and compared to the next previous comparison month period. If the most recent DSO is greater than the next previous DSO by this percentage or more, then a credit task is created in Credit Task Refresh. Example You enter 10 in this field and 3 in the Comparison Months field. It is July 5th and the average DSO from April-July 5th is 50 and from Jan-Mar is 35. So, the most recent DSO of 50 minus the next previous DSO of 35 is 15 days. 15 days divided by 35 equals a 43% trend. Since 43% is more than the 10% trigger, this trend will create a credit task in Credit Task Refresh. |