Modifying credit term

This page allows you to modify the credit term that is in “Active” status. Tell me more.

Select the “Edit Credit Term” link available in the “Select Credit Term” page.

The “Edit Credit Term” page appears.

The system displays the following fields:

Credit Term Code	The code identifying the credit term.
Currency	The base currency of the company.
Status	The status of the credit term. Only the credit terms in “Active” status can be modified.

Modify the following field if required:

Desc.	A textual description pertaining to the credit term (Alphanumeric, 100). Mandatory.
	Zoom facility available.

Modify the following fields in the “Order Limits” group box:

Single Order Limit	The limit set for a single sale order in base currency (Decimal). Mandatory. The single order limit must be greater than zero. The value of a single sale order must not exceed the limits specified here.
Total Order Limit	The limit set for the total outstanding for a customer in base currency that is the part of sale orders that are not invoiced and the due amounts that are pending from the customer (Decimal). Mandatory. The total order limit must be greater than or equal to the single order limit.

The system displays the following fields in the “Credit Bucket Limits” multiline:

Note: The system retrieves the credit buckets in “Active” status.

Credit Bucket No.	The number identifying the credit bucket. The system displays the credit bucket number sequentially.
Days From	The starting day for the credit bucket in terms of overdue days.
Days To	The ending day for the credit bucket in terms of overdue days.
Weightage %	The percentage based on which the credit rating is calculated.

Modify the following field if required:

Credit Limit

The credit limit for the individual credit limit (Decimal). The limit must be greater than or equal to zero. The credit limit must be specified for the “Active” credit bucket.

Note: The sum of credit limit specified in the multiline must be less than or equal to total order limit.

If the credit limit has not been specified for the bucket, then the system displays zero.

Modify the following fields in the “Receivable Details” group box:

Dunning Required	Use the drop-down list box to select “Yes” to indicate whether the dunning is required. Dunning is the process of sending reminders to the customers for delayed payments. The options available are “Yes” and “No”.
Credit Check Action	Use the drop-down list box to select the action to be taken during credit check. The credit check actions available are
	Hold – Indicates that any new sale order/ pack slip/ pick order is put on hold the in the event of adverse credit rating for the customer.
	Ignore – Indicates that the no action needs to be taken even if the credit status of the customer is unfavorable.
Credit Check Level	Use the drop-down list box to select the credit check level. The options available are
	Customer - Indicates that credit check must be done only for the individual customer.
	Up the Hierarchy – Indicates that the credit check for the customer would be done by combining the actual balances and the credit limits for all the customers falling in his direct hierarchy

Note: The lateral branches of the customer hierarchy are ignored.

	Total Hierarchy – Indicates that combining the actual balances would do the credit check for the customer and the credit limits for the entire hierarchical group of customers, to which the customer belongs, starting from the highest parent.
Discount Grace Days	The number of grace days provided to the customer to avail the discount (Integer). The grace days specified must be greater than zero. For example, if the customer can avail a discount till certain date, the discount period can be extended by the number of days specified here.
Receivable Grace Days	The number of grace days provided for accepting the receivables from the customer (Integer). The grace days specified must be greater than zero.
Residual Write Off %	The percentage of the amount that can be written off per transaction during adjustments, and that need not be considered as receivables (Decimal). The percentage specified must be less than 100.
Residual Write Off Amount	The negligible amount that can be written off per transaction during adjustments, in base currency (Decimal). The adjustment transaction would consider the percentage of residual writeoff or the amount whichever is lower.
Applicability of Residual Write Off on Over Payments	Based on the selection of the checkbox, while adjusting the Credit document with a debit document, where Credit document Amount is greater than the debit document outstanding amount and the difference is within the residual write off % / amount, then the same is written off as residual write off. If the check box is not checked the system ignores this information and proceeds without Wirte off of over receipts.

Click the “Edit Credit Term” pushbutton to modify the credit term details.

Note: The credit term must exist for the BU or the company based on the nature of business units for the installation – business unit if business units span across companies, and company if business unit are internal companies.

The credit term must be in “Active” status.

The system saves the modified credit term information.

The system also stores the login ID of the user as and the system date with the modification details.

The system also displays the creation details of the credit terms.

The system displays the following fields:

Created By	The login ID of the user who created the credit term.
Created Date	The date on which the credit term was created.
Last Modified By	The login ID of the user who last modified the credit term.
Last Modified Date	The date on which the credit term was last modified.

To proceed, carry out the following

Select the “View Credit Term” link provided at the bottom of the page to view the credit term details.

Modifying credit term – An overview

The system displays the code identifying the credit term and the base currency of the company. You can modify the textual description pertaining to the credit term, the order limit set for the single order or the total sale order and the credit limit set for each individual credit bucket. You can also modify the receivable details

The system saves the modification details. The system also stores the login ID of the user and the system date with the modification details. The system also displays the creation details of the credit term.