New Credit Management Part 2: Sales Order Blocking and Exclusion Rules

In this video we will cover rules that will automatically put sales orders on hold based on predefined conditions such as expired credit limit or sales order total. We will first review credit management parameters that need to be configured, then we will create multiple blocking and exclusion rules and finally will test these rules by creating sales orders.

[@MaroonedAgainPL]

Great video - thank you!

[@jainminakshi21]

Hi, Thanks for the video, this is very helpful me the beginners like me. But can you please let the know the step how to check the exclusion and blocking condition. In the video at 11:19 time what you will perform, I did;t get it. So can you please let me the steps for that.

[@nextoneconsulting]

The only way to check it is to create sales order and see if order hold has been applied to it.

[@MrLaChien]

Great job.

[@nextoneconsulting]

Thank you! Cheers!

[@luisr.m1619]

I get the credict limit comprobation on the confirmation but at the checkpoint i dos not haave enable the posting check! ;(

[@nextoneconsulting]

Hi Luis, just try to understand you issue. Can you share screenshots and steps to reproduce?

[@luisr.m1619]

@@nextoneconsulting hello, thanks for answere , i found the solution, i was missing a step from your video. Thanks for share :). Regards

[@yogeshmanikpure]

Hi, Thank you for the detailed explanation. Can we create a blocking rule based on sales order where all sales order with payment term "Advance" would be blocked at the confirmation. Since the payment term is advance, customer would pay first and posted through receipt journal and then once it is applied to sales order, it should be automatically released. Or may be you can suggest another better way to manage it?

[@nextoneconsulting]

I am not sure if what you are describing is possible using standard functionality. System will not auto release order hold after pre-payment is posted. It will have to be done manually by user.

[@yogeshmanikpure]

@@nextoneconsulting Lets say prepayment is posted and user release the order manually. Is there any way to configure that the order should be released only when prepayment is applied and checking that the prepayment amount >= sales order amount.

[@nextoneconsulting]

I don't see how it can be achieved using standard functionality. Potentially you could have used "overdue amount" blocking rule. If payment terms on invoice are net 0 than it will become overdue at the time of posting. If you settle that open invoice with pre-payment received, then it will not be overdue anymore and system should not block related sales order. But this process assumes that you already posted invoice for sales order before it goes on hold which is where it falls apart.

[@brijeshsharma604]

Hi Oleksiy, really appreciate your efforts and nice explanation. I have created one customer credit group and defined credit limit 5000 USD for this group and attached 2 customers in this group, one customer has credit limit is 1000, but when I created sales order for 1500, system is not validating credit limit at group level and giving error that credit limit exceed.

[@nextoneconsulting]

Thanks Brijesh. To your question: the behavior you are getting is expected. According to MS (docs.microsoft.com/en-us/dynamics365/finance/accounts-receivable/cm-customer-credit-groups) "individual credit limit that is defined on the customer invoice account is also considered". What that means is that first system checks credit limit on the customer and if it's reach it will put order on hold. If it passed, the system will then check credit limit on customer credit group. In your case, individual credit limit is reached hence the error.

[@shar9491]

Hi great video, The credit rules can apply to the sales order generate from the POS? I appreciate your answer

[@nextoneconsulting]

Hi G, yes it can. Once sales order is created from POS terminal it can then be confirmed in D365 to trigger credit rules check and the order will be put on hold if one of the checks failed.

[@schmarotte5753]

Hi, thanks a lot for this great video, it solved a lot of questions. but do you know more about "reject" a sales order? what happens with the order? Thanks a lot in advance.

[@nextoneconsulting]

Hi Nadja, It will remove credit hold and mark sales order as rejected. If you confirm order again, then the system will create another credit hold.

[@yosephadiwibowo6580]

Hello NextOne, how's the calculation of overdue amount blocking rules. thanks in advance

[@oleksiykhoroshylov]

Hi Yoseph, this rule can be configured to check two things: if Overdue amount is exceeded and if Credit limit threshold is exceeded. For the first check system will compare total of overdue invoices to value entered in Overdue amount filed. If the rule type is "blocking" and total of overdue invoices is greater than Overdue amount then SO will go on hold. If the rule type is "exclusion" and total of overdue invoices is less than Overdue amount then SO will not go on hold. For the second check system will compare total of overdue invoices to value calculated based on % of credit limit. For example, customer credit limit is $1,000 and Credit limit threshold value is 50%. That means that system will compare total of overdue invoices to 500.

[@yosephadiwibowo6580]

@@oleksiykhoroshylov thanks for the explanation

[@TheRsnk]

This functionality is available on which version.? Thanks in advance

[@nextoneconsulting]

Hi Nanda, it's available from 10.0.9 update 33 and up.