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Oracle Credit Management Agenda
A. Overview of Credit Management
B. How will Credit Management help the business?
C. Who can use Credit Management?
D. Application Responsibilities that will be used today
E. How to setup Credit Analyst and Credit Manager?
F. Prerequisites to Implement Credit Management
G. Configuring Credit Management
H. Workflow Management
A. Overview of Credit ManagementA. Overview of Credit
ManagementA. Overview of Credit ManagementA. Overview of Credit
Management Oracle Credit Management empowers your credit personnel
to continually monitor and evaluate the credit worthiness of your
business-to-business customers and prospects. Coupled with a wealth
of timely internal and external data, you can create credit
policies tailored to your business enabling you to balance your
companys growth with your desire for financial stability.
Credit ManagCredit ManagCredit ManagCredit Management can be
explained in 4 Business Flow areas:ement can be explained in 4
Business Flow areas:ement can be explained in 4 Business Flow
areas:ement can be explained in 4 Business Flow areas: 1. Credit
Policy Management:1. Credit Policy Management:1. Credit Policy
Management:1. Credit Policy Management: In Credit Policy
Management, we use a unique matrix approach to defining Credit
policies, based upon the assignment of the customers credit
classification or risk assessment, coupled with the type of review
being conducted. Credit personnel can use checklist to determine
what data points will be gathered from the application tables, what
data points are
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required on a credit application and in the credit review case
folder. 2.2.2.2. Credit Application: Credit Application: Credit
Application: Credit Application: The credit application flow
enables personnel to submit credit application information on
behalf of a customer or prospect. There are also business events
that would drive the initiation of a credit review, such as an
order being placed on credit hold due to the pre-calculate credit
exposure or an externally defined user event.
3. Credit Analysis and Decision:3. Credit Analysis and
Decision:3. Credit Analysis and Decision:3. Credit Analysis and
Decision: Within the credit analysis and decision flow, the case
folder is the central repository for all data, analyst notes,
calculated credit scores and recommendations for the credit review.
Because Credit Management is a cross-org application, data
displayed in the case folder for a credit review can show
transactions counts and amounts for all operating units. Also,
because Credit Management utilizes the TCA Relationship Manager
hierarchy, the data in a credit review can be consolidated and
calculated for Party / Customer Account and Site levels. Throughout
the credit application and analysis flows, you can Purchase Dun
& Bradstreet data and the information is automatically imported
into OCM.
4. Performance: 4. Performance: 4. Performance: 4. Performance:
Credit Management provides you with comparison tools that help you
to determine if your credit policies have adequately assessed the
creditworthiness of your customers. You can access simple views
into the workload and effectiveness of the checklists and scoring
models that you have set up and used in credit reviews. Credit
Management plays a key role in the revenue and risk management of
the user organization. The assignment of a credit classification to
a customer identifies which revenue recognition rules are
applied.
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B. How will OCM help the business?B. How will OCM help the
business?B. How will OCM help the business?B. How will OCM help the
business? Improve profitability by minimizing bad debt Seize
revenue opportunities Balance short term debt with long term
financial solvency Reduce resource-intensive tasks Respond to
global customer credit needs Provide consistent purchasing power
Reduce Campaign-to-Cash life cycle Provide soup-to-nuts financial
instruments Resolve credit issues faster Work in best practices
environment with best of breed tools Reduce collections efforts
Minimize valueless tasks and create value-added work
C. Who can use Credit Management?C. Who can use Credit
Management?C. Who can use Credit Management?C. Who can use Credit
Management? 1. Credit Analyst: 1. Credit Analyst: 1. Credit
Analyst: 1. Credit Analyst:
Credit Review (OCM)Credit Review (OCM)Credit Review (OCM)Credit
Review (OCM) Credit Application Review and Analysis Periodic Credit
Review Special Credit Review
Customer Account Maintenance (AR) Customer Account Maintenance
(AR) Customer Account Maintenance (AR) Customer Account Maintenance
(AR) Review and Amend Transaction Profile Review and Amend Credit
Limits Place Customers on Credit Hold Release Customer Credit Holds
Process Requests for Refund of Credit Balances Writing Off
Un-Collectable Balances
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Sales Order Review (OM) Sales Order Review (OM) Sales Order
Review (OM) Sales Order Review (OM) Review Orders on Credit Hold
Place or Release Credit Holds on Sales Orders
2. Credit Manager: 2. Credit Manager: 2. Credit Manager: 2.
Credit Manager: Setting up Credit Management All Activities Listed
above for Credit Analyst 3. Credit Scheduler: 3. Credit Scheduler:
3. Credit Scheduler: 3. Credit Scheduler: Workflow related
activities in Oracle Credit Management 4444. Application User
(Requestor): . Application User (Requestor): . Application User
(Requestor): . Application User (Requestor): Create and Submit
Credit Applications D. Application Responsibilities that you need
to setup Oracle D. Application Responsibilities that you need to
setup Oracle D. Application Responsibilities that you need to setup
Oracle D. Application Responsibilities that you need to setup
Oracle Credit Management: Credit Management: Credit Management:
Credit Management: HRMS Management System Administrator CRM
Resource Manager Credit Management Super User Receivables Manager
Order Management Super User Credit Scheduler
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E. How to setup Credit Analyst and Credit Manager? 1. HRMS Used
to setup Employee in HRMS Application for Credit
Analyst/Manager. Responsibility HRMS Management Navigation HRMS
Manager > People > Enter and Maintain
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2. System Administration Used to setup Application User Account
for the Credit Analyst/Manager and then assign the User Account
to the Employee defined in above. Responsibility System
Administration Navigation Security > User > Define
3. CRM Foundation Used to assign Credit Analyst/Manager
Roles
to the Employee defined in above. Responsibility CRM Resource
Manager Navigation Maintain Resources > Import Resources
Select
Search
Import
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Responsibility CRM Resource Manager Navigation Maintain
Resources > Import Resources
Select
Search
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F. Prerequisites To Implement Oracle Credit Management:
1. Data Quality Management (DQM):1. Data Quality Management
(DQM):1. Data Quality Management (DQM):1. Data Quality Management
(DQM): DQM is a feature available Oracle Trading Community
Architechture Application which is used to search Parties, Accounts
and Sites in various Oracle Applications including Oracle Credit
Management. Oracle Credit Management employs the Data Quality
Management (DQM) search rules to identify how search results should
be displayed in the applications search screens. To implement DQM
in Credit Management, select Credit Management Search RuleCredit
Management Search RuleCredit Management Search RuleCredit
Management Search Rule for the DQM Matching Rule Name system
option.
[Step 1] Run DQM Staging Program: This program is run from
Trading Community Manager Responsibility and is designed to
populate DQM Staging Tables.
Responsibility Trading Community Manager Navigation Control >
Requests> Run
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[Step 3] Setup DQM Synchronization: After running DQM Staging
Program to populate DQM Staging tables, one has to setup DQM
Synchronization in Realtime / Batch mode to synchronize DQM Stage
tables with any new/changed Party/Customer Data. For more detailed
information on how to setup DQM Synchronization, please refer to
Oracle Trading Community Architechture Administration User
Guide
2. Populate AR Summary Tables with Transaction Data: 2. Populate
AR Summary Tables with Transaction Data: 2. Populate AR Summary
Tables with Transaction Data: 2. Populate AR Summary Tables with
Transaction Data: There are two summary tables that need to be
populated before using Oracle Credit Management and Oracle Advanced
Collections Applications. AR_TRX_BALANCES_SUMMARY_ALL: Stores
current balances, such as the amount of open invoices and open
receivables. Balances are stored as current snapshots and are not
dependent on any time parameter.
AR_TRX_SUMMARY_ALL: AR_TRX_SUMMARY_ALL: AR_TRX_SUMMARY_ALL:
AR_TRX_SUMMARY_ALL: Stores data, such as the count of open invoices
and total invoice value, which is summarized for a specified period
of time.
[Step 1] Set the Profile Option AR: Allow Summary Tabl[Step 1]
Set the Profile Option AR: Allow Summary Tabl[Step 1] Set the
Profile Option AR: Allow Summary Tabl[Step 1] Set the Profile
Option AR: Allow Summary Table Refresh: e Refresh: e Refresh: e
Refresh: Change the above Profile Option to YES YES YES YES at
Receivables Application level. Responsibility System Administrator
Navigation Profile > System
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[Step 2] Run Refresh AR Summary Tables Concurrent Program:[Step
2] Run Refresh AR Summary Tables Concurrent Program:[Step 2] Run
Refresh AR Summary Tables Concurrent Program:[Step 2] Run Refresh
AR Summary Tables Concurrent Program: This populates AR
Transactions Summary Table. This table is used for credit analysis
in OCM and also in Advanced Collections.
Responsibility Receivables Manager Navigation Credit
Management
[[[[Step Step Step Step 3]3]3]3] Set the Profile Option A Set
the Profile Option A Set the Profile Option A Set the Profile
Option AR: Allow Summary Table RefreshR: Allow Summary Table
RefreshR: Allow Summary Table RefreshR: Allow Summary Table
Refresh:::: After Step 2, system will reset the profile option to
No No No No and needs to be set back to Yes. Yes. Yes. Yes. Change
the above Profile Option to YES at Receivables Application
level.
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3. Schedule Workflow Backgroung Process program: 3. Schedule
Workflow Backgroung Process program: 3. Schedule Workflow
Backgroung Process program: 3. Schedule Workflow Backgroung Process
program: Schedule this process for Item Key AR Credit ManageAR
Credit ManageAR Credit ManageAR Credit Management Application
Processment Application Processment Application Processment
Application Process. Must be scheduled to run periodically based
upon the turnaround time required by the client (From Credit
Application submission to Case Folder creation). Responsibility
System Administrator Navigation Request > Run
4.4.4.4. Make sure Workflow Deferred Agent Listener Workflow
Deferred Agent Listener Workflow Deferred Agent Listener Workflow
Deferred Agent Listener is running all the time. This is very
important and used to sychronize AR Summary Tables and DQM Staging
Tables. Must be scheduled to run periodically based upon the near
real time data requirements of the client. For more questions on
this step, please contact your DBA/SysAdmin or log a TAR with AOL
Support Team.
Management Application Process
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G. Configuring Credit Management:G. Configuring Credit
Management:G. Configuring Credit Management:G. Configuring Credit
Management: Define Credit Management System OptionsDefine Credit
Management System OptionsDefine Credit Management System
OptionsDefine Credit Management System Options Aging Bucket -
*cannot be changed once saved Default Customer Profile Class DQM
Matching Rule Name Period for Time Sensitive Data Application
Numbering Option Exchange Rate Type DSO Days (Days Sales
Outstanding)
Delinquent Days Sales Outstanding (DDSO)
Responsibility Credit Management Super User Navigation Policy
Management > System Options
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Define Lookup Types Define Lookup Types Define Lookup Types
Define Lookup Types CREDIT CLASSIFICATION (Optional) CREDIT
CLASSIFICATION (Optional) CREDIT CLASSIFICATION (Optional) CREDIT
CLASSIFICATION (Optional) Responsibility Receivables Manager
Navigation Setup > System > Quick Codes > Receivables
Lookup Code: AR_MGT_CREDIT_CLASSIFICATION (Optional)
DefDefDefDefine Lookup Type ine Lookup Type ine Lookup Type ine
Lookup Type CREDIT REVIEW TYPE CREDIT REVIEW TYPE CREDIT REVIEW
TYPE CREDIT REVIEW TYPE Responsibility Receivables Manager
Navigation Setup > System > Quick Codes > Receivables
LOOKUP CODE: AR_CMGT_REVIEW_TYPE
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Bounce Apache * Bounce Apache * Bounce Apache * Bounce Apache *
---- Required only if you are on OCM.C or lower.
Define Scoring ModDefine Scoring ModDefine Scoring ModDefine
Scoring Modelselselsels Scoring Model is a measurement tool. In
Credit Management, scoring is used to evaluate the risk represented
by a Customer or Prospect or carried by a Lease or Loan.
Involves the following.
1. Selecting Data Points 2. Define Scoring Formula
Associate Scores to Data Points ranges of values Define weights
if weighted average is the selected Credit
Policy/Scoring Model Responsibility Credit Management Super User
Navigation Policy Management > Scores
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Define and Assign Automation Rules - For any scoring model, you
can define a set of automation rules to implement credit decisions
without user intervention. Such automation is implemented when the
credit risk is minimal. Automation Rules are associated to Scoring
Models. Responsibility Credit Management Super User Navigation
Policy Management > Automation Rules
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Define Credit ChecklistsDefine Credit ChecklistsDefine Credit
ChecklistsDefine Credit Checklists - Define / Record your credit
policy for a given combination of Credit Classification and Review
Type:
Select the Data Points Optionally assign a Scoring Model
Responsibility Credit Management Super User Navigation Policy
Management > Checklists
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Define Customer ProfilesDefine Customer ProfilesDefine Customer
ProfilesDefine Customer Profiles
The Credit Profile tab is used to define customer defaults for
Credit Management.
You can define:
Classification Periodic Review Cycle (Optional) Credit Analyst
(Optional) Credit Tolerance (Used if Integrated w/OM) Credit
Checking (Used if Integration w/OM)
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Responsibility Receivables Manager Navigation Customers >
Profile Class
DDeeffiinnee aanndd AAssssiiggnn CCrreeddiitt UUssaaggee
RRuullee SSeettss Define and Assign Credit Usage Rule Sets - Credit
Usage Rule Sets define the set of currencies that will share a
predefined credit limit during the credit checking process, and
enable the grouping of currencies for global credit checking. Usage
Rules Sets ensure that if credit checking is enabled, that all
transactions for specified currencies go through the currency
conversion process and are summarized by currency prior to the
credit checking process.
Confirm the Credit Usage Rule Sets are Assigned to your Profile
Class / Operating Unit / Party / Account / Site / Item Category.
Responsibility Receivables Manager Navigation Setup > Credit
> Define Credit Usage Rules
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Responsibility Receivables Manager Navigation Setup > Credit
> Assign Credit Usage Rules
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H. Workflow Management:H. Workflow Management:H. Workflow
Management:H. Workflow Management: This section covers the
following topics:
Credit Analyst Assignment Rules
Reassigning Credit Reviews
Reassign Credit Analyst Program
1. Credit Analyst Assignment Rules: 1. Credit Analyst Assignment
Rules: 1. Credit Analyst Assignment Rules: 1. Credit Analyst
Assignment Rules: Credit Management uses the Rules Engine, a
component of the E-Business Suite, to let you define rules that
control the correct credit analyst assignment.
On the Credit Analyst Assignments page, use the Rules List tab
to:
Select a default credit analyst. Credit Management uses this
default when no rule either exists or applies during a particular
credit review.
Define the rules that indicate how credit analysts are
automatically assigned to case folders. Credit Management evaluates
the rules that you create in sequential order.
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2. Reassigning Credit Reviews: 2. Reassigning Credit Reviews: 2.
Reassigning Credit Reviews: 2. Reassigning Credit Reviews: Access
the Reassign Credit Reviews page using the Credit Scheduler
responsibility. Enter search criteria, then select one or more
reviews for reassignment. Reassigned reviews appear in assignees
queues without additional notification.
Use the Reassign Credit Reviews page to move selected credit
applications and case folders among credit personnel. Reassignment
might be necessary to rebalance workload between credit analysts.
You can also use this page to assign credit analysts to unassigned
credit applications.
3. Reassign Credit Analyst Program: 3. Reassign Credit Analyst
Program: 3. Reassign Credit Analyst Program: 3. Reassign Credit
Analyst Program: Over time, personnel changes might require a
change to the credit analyst who is assigned to an account, credit
application, or case folder. For example, a credit analyst might
take a personal leave of absence, or leave the organization
entirely.
Use the Reassign Credit Analyst concurrent program to specify
the required analyst changes. This program executes a mass update
on a batch basis, moving a credit analysts entire work queue to
another credit analysts work queue. This program also updates the
credit analyst assignment in the related customer profile class, so
that future credit reviews automatically reflect the new credit
analyst assignment.