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Posted on September 2nd, 2017 by Sanjit Anand ||Email This Post Email This Post

GCC Apart from India GST new in recent past , In another milestone towards the implementation of VAT across the Gulf Cooperation Council, the Unified Agreement for VAT was published in the official gazette of one of the member states, Saudi Arabia.

The Unified Agreement provides the framework for the operation of VAT across the GCC.

Each GCC member state will implement the framework through legislation and other instruments. This milestone is another reason for companies operating in the Middle East to put in place or further their VAT implementation plans.. Companies in these region already started for Implemnating GCC .

Let’s have a quick look :

The Gulf Cooperation Council (GCC) was formed in 1981 to create unity and economic stability amongst the member nations.

The International Monetary Fund recommended the introduction of an indirect tax system to increase revenue for the member countries.

All member states signed the VAT Framework Agreement, which establishes the main principles for the application of the VAT regime in the member countries.

Here are Key Highlights for KEY Unified VAT Framework


Currently , GCC Member Nations

  • Bahrain
  • Kuwait
  • Oman
  • Qatar
  • Saudi Arabia
  • United Arab Emirates (UAE)

Each member will issue VAT legislation.

Majority of Tax system provide Tax Engine and Integration:

  • Logic to natively support Goods and multiple Services type transactions in the Kingdom of Saudi Arabia and the United Arab Emirates
  • Domestic, Intra-GCC, and International (Import and Export) transactions are all supported

Why GCC is getting some much attention

Reason , a deadline is given for these countries

  • United Arab Emirates and Saudi Arabia in Q4 2017
  • Qatar, Oman, Bahrain, Kuwait in 2018 (dependent on legislation)

Though , It’s official: 2018 will see the start of implementation of a value-added tax (VAT) across the Gulf states

Business Functional Area where get impacted [TRANSITION-RELATED CHALLENGES]

Businesses will face the impact of VAT in two ways: by the additional investments needed for compliance,as well as the higher input cost of the new VAT, itself .

However, companies may refrain from passing on the entire input VAT to consumers owing to the fear of losing business.

Some key Challenges can be best understood as :

In Procurement : Major Trabsition Releated challenges might be

  • Formulate new procurement strategies
  • Vendor management
  • Revisit contracts and arrangements

Accounting & IT System

  • Update financial and point of sale systems
  • VAT coding for payables and receivables
  • Electronic documentation/process automation [ if any]

Sales & Pricing

  • Assess impact of VAT on demand/current contracts
  • Pricing strategy and terms of payment
  • Customer management

Knowing Where to Start

So, where do you start to determine which approach is best for you? Deploy a new ERP in the cloud? Keep your core ERP and connect cloud VAT services? Should go with Tax vendor ?

There are a number of factors to consider:

  • What is the age of your existing ERP system? Are you running the latest version of the software, or are you on an old vesrion?
  • In how many countries do you do business?
    • The more geographies, currencies,and languages you operate in, the more rules, regulations, and compliance issues you will need to consider.
    • It might be worth a full-scale migration to cloud in order to keep on top of all the permutations.
  • How many transactions does your ERP process in a day?
    • The higher the transaction volume, the more important it is that your core system be scalable enough to meet demand.
  • Are you looking at a full ERP replacement in the near future?
    • If so, it might make sense to take a phased, “outside-in” approach—starting with tax applications in the cloud to meet the immediate VAT deadline, and then moving core ERP to the cloud at a later date.

No matter which approach you decide on, VAT is coming. Every GCC business will need to comply. I recommend that you form a project team as soon as possible to understand how VAT will impact your business and operating model.

Assess the capability of your existing systems to comply with the new regulations.And then, choose an implementation partner and a software vendor with the real experience and capabilities to meet your needs.

More Reading

You can get more reading

Closing Thoughts

As per The UAE Ministry of Finance

The system for VAT registration and payment is being developed to meet the very best global standards using leading-edge technology. All services will be online and accessible 24/7, responding to the requirements of business. This reflects the UAE’s aim to be a leader in innovation and technology across all aspects.

Posted in Finance, Functional, Fusion Application, Oracle Cloud * | No Comments »

FASB 13 & Normalizing Payments

Posted on May 2nd, 2014 by Sanjit Anand ||Email This Post Email This Post

Landlords and tenants whose companies are publicly traded need to comply with FASB-13 standards for accounting of leases.

What is FASB 13?
FASB 13 regulates the accounting standards for office leases in the United States. In effect since 1977, these standards have established how leases are reported on financial statements by both tenants and landlords.

FASB 13 calls for every lease to be classified as either an Operating Lease or a Capital Lease based on specific criteria. As it currently stands, the vast majority of lease transactions are classified as Operating Leases. An Operating Lease is treated as an ongoing operating expense , where a Capital Lease is treated as a financing transaction and should be reported as an asset and liability on a company’s financial statements.

Understanding FASB 13 Standards

The Financial Accounting Standards Board (FASB) controls the accounting standards in the United States to ensure that financial statements are in accordance with Generally Accepted Accounting Principles (GAAP).

FASB 13, which is Ruling 13 from that board, states that the revenue from rent (recurring billings) must be recognized evenly (as a straight line) over the life of the lease. The difference between the straight-line rent that the system calculates for FASB 13 and the actual rent that you bill the tenant (or pay the landlord) must be reflected in the general ledger.

This examples below illustrate the actual rent amount for three years and the effect of FASB 13.

Actual Rent : This table illustrates the actual rent for the lease term January 1, 2012 – December 31, 2014 :


Effect of FASB 13 : This table illustrates the effect of FASB 13 for the lease term January 1, 2007 – December 31, 2 008:


Accural/Defferal :*Straight-line rent minus actual rent

To calculate the effect of FASB 13, the system adds the rent amounts for the entire lease term, and then divides the sum by the number of months in the lease term. Then the system subtracts the actual rent from the straight-line rent to determine the amount of the accrual or deferral that must be recorded in the general ledger.

GAAP states that accruals and deferrals must be recognized in the financial statements.

  • A positive difference is an accrual .
    • In above example, you received 15,000 in cash the first year, but you earned 20,000 based on FASB 13.
  • A negative difference is a deferral .
    • In above example, you received 25,000 in cash the third year, but you earned 20,000 based on FASB 13.

what you can see, the net sum of the accruals and deferrals over the life of the lease should be zero.

Understanding the FASB 13 Billing Process (Normalizing Payments) @Oracle Property Manager

As you have observed, according to these rules, companies need to normalize or calculate the average rent payments/billings over the term of the lease.

These normalized amounts need to be reported as revenue/expense, along with accrued revenue/liability, so that the investment community can accurately analyze the company’s financials.

If you have a lease for which payment/billing amounts vary over the lease term, you can use Property Manager to normalize a lease for you and renormalize it if you amend the lease.

Normalization, also known as straight-lining,spreads the cost of rent payments/billings and rent abatements over the life of a lease to more accurately record the lease expense or revenue during the time it was incurred.

Rent normalization is used to comply with FASB-13 standards. Landlords can vary rent amounts over the life of a lease term for the following reasons:

  • Provide an incentive for the lessee
  • Reflect the anticipated effects of inflation
  • Ease the lessee’s near term cash flow requirements

Using the rent normalization feature provides you with detailed monthly deferred liability and accrued asset amounts that can be accessed by accounting and finance departments to accurately calculate and estimate company-level revenue and expenses.

Only those lease terms for which the Normalize check box is checked can be normalized. Only actual amounts can be specified for normalized terms.

All normalized terms must lie within the lease term.

In other words, the start date of a normalized term cannot be earlier than the lease commencement date, and the normalized payment/billing term end date cannot be later than the lease termination date.

In EBS , When you enter a lease, you check the Normalize check box for a payment, billing, or abatement if you want it to be included in the normalization calculations .

After you finalize and save the lease, Property Manager creates a payment or billing schedule.

In the View Requests window you can then review the payment/billing schedule and the normalized amounts, or you can run the Normalized Rent Schedule Report.

Property Manager transfers revenue and expense distribution lines directly to Oracle General Ledger.

To calculate the average (normalized) amount for a term, Oracle Property Manager adds up all the cash items for that term over the entire lease term, and divides this sum with the number of months between the lease start and end dates.

If the lease starts or ends mid-month, the proration rule specified at the Lease Details level is used to calculate the number of months.

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Oracle Property Manager : API’s availability

Posted on March 29th, 2014 by Sanjit Anand ||Email This Post Email This Post

With recent Patch 10401569, you can take advantage of using API for Oracle Property Manager. The following APIs are available

  1. Lease creation and updation can be done using APIs.
  2. Index Rent creation and updation can be done using APIs.
  3. Variable Rent creation and updation can be done using APIs.
  4. Workflow, Business events for lease are available.
  5. Client extension for variable rent calculation is available.
  6. API to update the Lease status is present.

You can refer to Irep for more details.

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Oracle Credit Management : Top 12 most frequent issue you may encounter while supporting

Posted on November 13th, 2013 by Sanjit Anand ||Email This Post Email This Post

Here are Top 12 Issue , you may observe while you support Oracle Credit Management.

S.N Issue Resolution
1 New Customer Created , but Unable to view them in Credit Application Page
  • This will happen only for newly created customers
  • In that case , you need to run DQM Staging Program from TCA for viewing new customers in Credit Management Screen
2 Credit Analyst appear/assigned in Case Folder, not correct

Credit analyst is first picked up based on rules defined in Credit Management Setup.

  • If there is no rule then it picks up from Default credit analyst field existing on Rules page.
  • If neither rule nor default credit analyst is written then it is picked up from profile class of the customer.
  • If all of above fails then Credit Manager should assign the credit analyst manually through logging in Credit Scheduler responsibility

You check the setup.


Scores show null values in Created case Folder

  • This May be , caused if some of the data points may not have value in application.

In order to Fix , you need convert null values to zero values is checked in scoring model then only zero will come if points doesn’t have value in application.

4 Case Folder created but Credit Analyst is missing
  • This could be only happen if thereview process is automated and then the case folder would be closed.

Other possiblity may be happen due to some missing setup. Check out the post for setups.


Credit Management Case Folder Number link gives

500 Internal Server Error

Apply Patch 9452151, Credit Management Case Folder # Link Gives 500 Internal Server Error –

Credit classification Not getting picked up in Credit review

This is how this works

  • It may be picked up from the previously completed credit review or picked up from customer profile.
  • If no credit review exists or no classification exists from it picks up from Credit Classification field in system options in Credit Management setup

You can review the setup.


Case Folders Not Created, Workflow Errors

error Message is something likes

If you are getting similar message as below

Workflow errors when trying to create case folders. Error is:
AR_CMGT_WF_ENGINE.GATHER_DATA_POINTS(ARCMGTAP, XXXXXX, Unable to Generate Case Folder, Error While getting Largest Invvoice and High Credit Amount, SqlError: ORA-01422: exact fetch returns more than requested number of rows)
Wf_Engine_Util.Function_Call(ar_cmgt_wf_engine.gather_data_points, ARCMGTAP, XXXXX, XXXXXX, RUN)

Run Refresh AR Summary Tables and it will resolve the issue with the workflow and duplicate data.

8 Data points show incorrect values in Credit Management
  • Data needs to be refreshed automatically .
  • Sometime it is not refreshed then AR Refresh Summary Table Program needs to be run which requires profile AR: Refresh Transactions Summary set to Yes
9 Case folder not approved automatically even-if credit review is automated
  • It is possible that skip approval is not checked in Automation rules for your score of the credit application
  • If skip approval is not checked in Automation rules then you will need to do AME setups to assign the credit analyst for approval.
  • Sometimes it is possible that your setup is missing for your score in automation rule. In that case it will be assigned based on Credit Analyst assignment and analyst need to manually enter recommendations and submit the case folder.
10 When creating credit applications, Guarantor or child workflow may throw an error message – Credit usage rule has not been setup. In this case, you need to setup credit usage rule
11 Attempting to create a Case, in Credit Management Super User, using a Scoring Model with a custom data point and find the Credit Score is not created. This issue has been addressed in Bug 9342120
12 You have selected the Credit Exposure data point to show on the case folder, but you are not sure how this amount is derived.

The Credit Exposure should include transactions that are not overdue. Credit exposure means total receivable in AR plus un-invoiced orders in Order

The credit exposure in Order Management(OM) and Oracle Credit Management(OCM) may or may not match because OM credit exposure is calculated based on the OM Credit Check Rule definitions which allow users to choose what balances to include in the calculation of credit exposure.

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Credit Managment :Release 12.2 enhanced functionality

Posted on September 4th, 2013 by Sanjit Anand ||Email This Post Email This Post

Two Major Enhancement in Credit Management in R12.2

  1. Credit Tolerance Limits
    Tolerance limits Field In credit check rule setup. This provided functionality to define credit tolerance limits to prevent credit check holds from getting reapplied on orders that were previously released from credit check hold. Changes in order amounts are compared to tolerance limits, as defined in the credit check rule. Reapplication of credit check hold is prevented if the change in order amount is within the specified tolerance limit
  2. Credit Hold Based on Bill To Customer
    A new system parameter “Apply Credit Hold Based On“¨ has been added. Options are:
    • Sold To Customer
    • Header Level Bill To Customer
    • Line Level Bill To Customer

This allows the customers to place orders on credit hold if the Bill To Customer is on credit hold. Additionally, customers can decide to place the Order on credit hold based on the header level Bill To Customer, or Order line on credit hold based on the line level Bill To Customer.

This new feature is extension of existing capability of placing orders on credit hold if the Sold To Customer is on credit hold ‘Sold To Customer is the default value and maintains existing behavior.

You can refer to RCD for more insights.

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Integration of Oracle Credit Management with other modules

Posted on August 3rd, 2013 by Sanjit Anand ||Email This Post Email This Post

Oracle Credit Management have mainly three integration touce-point for credit needs with these EBS appliucation:

  1. Oracle Order Management
  2. Oracle Lease Management
  3. Oracle Loans
  • Oracle Order Management : This have integration for Order Management Credit Review.As we know Credit Management is used by Credit/Receivables analysts to allow more in depth management of customer credit worthiness and credit availability.Credit Management allows the C/R analysts to assign a level of credit worthiness/risk to customer accounts.In OM when a sales order is placed on credit check failure hold, a case folder is created in Credit Management
    • Setups to be verified for Review from Order Management
      • Credit check checkbox should be checked in payment terms
      • Setup order credit limit in customer standard page for the currency for which credit application needs to be created.
      • Checklist for review type order hold needs to be created along with credit classification of the customer.
      • Make sure credit check rule is selected on Order Transaction type.
  • Oracle Lease Management :Lease applications are created and managed in Lease and Finance Management for the purpose of obtaining credit approval from Oracle Credit Management. A lease application contains both a lease sales quote and a credit application. Once a prospect has accepted a lease sales quote, you can convert the lease quote into a lease application, add customer credit data and pricing information and submit it for approval. You can also create a lease application without converting a lease sales quote.
    • Setups to be verified for Review from Lease Management
      • Lease application template has been setup in Lease for credit classification for the customer with review purpose as New Deal Lease Application
      • End of term option should be set up in lease
      • Checklist for review type new deal lease application needs to be created along with credit classification of the customer.
  • Oracle Loans – Oracle Loans integrates with Oracle Credit Management to perform credit reviews for loan application requests and decide to approve or reject it. The Credit Review option is set at the Loan Type level. You can either create a loan with a loan product that requires credit review or request review while creating or updating a loan. You must complete as much of the application including recording assets, financial data, co-borrowers, guarantors and other loan details to request credit review. Loans displays information from Oracle Credit Management in the Borrower Summary.
    • Setups to be verified for Review from Loans
      • Loan type should have credit review enabled
      • Checklist for review type Loan needs to be created along with credit classification of the customer.

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Two credit limit on single customer

Posted on June 3rd, 2013 by Sanjit Anand ||Email This Post Email This Post

A reader question:

Can You help me for one of senarios for my client :

“I have single customer ABC .For Same customer we have set credit limit of 50000 USD, but with same customer we are doing two business first of finish goods sold and second is service.So we don’t want to give that much credit limit to service business. that’s why we want to set two credit limit for same customer. Is there any way to Handle this ?How can two credit limits be set for one (the same) customer?

Answer : Here is summary of Requirement , for same customer , need two credit limit

  • The First is Goods Sold
  • The Second is Service

If you have such requirement , then you may be get disappointed. Currently OCM application is not designed to handle such requirement. Though Oracle have enhancement request for Future releases . Thats means, Future release might have TWO CREDIT LIMIT ON SINGLE CUSTOMER .Sound Intresting .

Therefore , for this case what you can do as workaround is to setup multiple customer accounts under that same party and then define separate credit limits. This way you can use different customer accounts for different types of businesses. Hope this helps.

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Oracle Credit Management : No Case Folder Upon Credit Application Creation

Posted on March 13th, 2013 by Sanjit Anand ||Email This Post Email This Post

Oracle Credit Management gives you the information and tools you need to monitor and evaluate the creditworthiness of your customers and make informed credit decisions faster.


To create a new credit application, you must first enter your search criteria and then select the credit applicant . This procedure capitalizes on the data that you already maintain by automatically populating the credit application with basic information about the applicant.

When you open a new application , Credit Management automatically prefills the application with certain basic information from the account record that you selected, such as account name, account number, address, requestor name, and so on.

Only those parties (both customers and prospects) who are defined with the customer type of Organization are included in the search results.

If you select a customer at the top organization level, then data for all accounts that are related to the organization will be consolidated for the credit analysis. Or, if you select a specific customer account from the search results, then the data for all sites that are associated with the account will be consolidated.


When you create a credit application but do not get a case folder, what should you do?

Look for script wfstatus.sql (You can find the wfstatus.sql under $FND_TOP/sql/wfstatus.sql) , to get information about what may have occurred with the creation of your case folder during the workflow process.

In this script , the first parameter is the itemtype.

  • The itemtype for Oracle Credit Management (OCM) is ARCMGTAP.
  • The second parameter is the itemkey. There are two ways to get the itemkey:

If you check the workflow status and see that there is an error existing for your process, you can see the itemkey as part of the error.

For example, if your error looks something like this:

AR_CMGT_WF_ENGINE.IMPLEMENT_RECOMMENDATION(ARCMGTAP, 100424, Error while applying Removing Hold for Party : 76902 Cust Account id 107716 Site Use Id ONTOE_HOLDS_AUTHORIZATION_FAILEDACTIONRelease, ORA-0000: normal successful completion) Wf_Engine_Util.Function_Call(ar_cmgt_wf_engine.implement_recommendation, ARCMGTAP, 100424, 158878, RUN)

  • You will see both the itemtype = ARCMGTAP and right next to it the itemkey = 100424 < /FONT > .

If you do not see any errors, next step for you is to get the itemkey by using the CREDIT_REQUEST_ID using this query.

where APPLICATION_NUMBER = ‘&number’;
< /FONT >


  1. Make sure the checklist actually exists for the credit classification and review type provided in the application.
  2. In some cases checklist exists but it may not be submitted. It may only be saved. It is also possible it may be end dated.
  3. Make sure credit assignment rules are assigned to the profile class/customer/bill to location.
  4. It is possible that your customer has multiple currency transaction rates for which currency exchange rates must be missing.
  5. Your checklist/scoring model to the checklist may have and additional customized data point for which setup may be incorrect.
  6. Workflow activities may have been stopped. Please run Workflow background process for item type “AR: Credit Management Application Process
  7. In case of credit review from order management review type will be common ‘Order Hold’ for all applications hence there should be a checklist for these review type with customer applicable credit classification.
  8. Some things may be mandatory to be provided in application like bank references, trade references, financial data etc. which may not be provided while submitting application. This mandatory data is required for the checklist created.

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Oracle Credit Management with/Without Order Management

Posted on February 4th, 2013 by Sanjit Anand ||Email This Post Email This Post

What needs to be done if you are implementing Credit Managment but we have Order Management on a legacy system? If a Sales order is on credit hold at legacy, how will that information come to the Credit analyst to do a credit Analysis before deciding to release the credit hold.

You will need to use the Credit Management API to create a credit application from your OM system.
You will need to call this API from your legacy custom code when ever the order goes on hold due to credit limits to create the Credit Application.

The Credit Management public APIs includes five APIs:

  • Create Credit Request API :The ar_cmgt_credit_request_api.create_credit_request routine is used to create a credit request for initiating a credit review for a party, account, or account site.
  • Update Credit Request API :The ocm_credit_request_update_pub routine is used to update an existing credit request for a party, account, or account site.
  • Withdraw Credit Request API :The ocm_credit_req_withdraw_pub routine is used to withdraw an existing credit request for a party, account, or account site.
  • Guarantor API :The ocm_guarantor_pub routine is used to automatically submit a credit application for a guarantor that is included on a credit application or in a case folder.
  • Get External Decision API :The ocm_get_extrl_decsn_pub routine is used to bypass Credit Management’s scoring functionality and extract case folder contents for scoring by an external scoring engine.

Setting up Credit Management for OM

If you are using Oracle OM , these are mandatory setup

  • Credit check checkbox should be checked in payment terms
  • Setup order credit limit in customer standard page for the currency for which credit application needs to be created.
  • Checklist for review type order hold needs to be created along with credit classification of the customer.
  • Make sure credit check rule is selected on Order Transaction type.

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How To Set Up Oracle Credit Management

Posted on February 3rd, 2013 by Sanjit Anand ||Email This Post Email This Post

Here is a summary of steps to set up Oracle Credit Management

  1. Maintaining Customer Data :Oracle Credit Management employs the Data Quality Management (DQM) match rules to identify how search results should be displayed in the application’s search screens
    • DQM Match Rule
    • Run DQM Staging
  2. Defining Credit Analysts :Credit analysts assist in the resolution of credit-related issues and evaluate the creditworthiness of your customers and prospects. Credit analysts can view credit applications and case folders in Oracle Credit Management, and can submit recommendations after concluding a credit analysis.
    • Import/assign Credit Analysts – First define your credit analysts as employees in Oracle Human Resources Management System (HRMS).Next, import employees from HRMS into Resource Manager and assign roles.Two seeded roles exist for Credit Management:
      • Credit Analyst :You can assign the credit manager role to a credit analyst
      • Credit Manager : This is setup functionality
  3. Credit Mgmt System Options : You can define these Oracle Credit Management system options.
    • Aging Bucket :Specify which aging buckets to use when presenting aging data in Credit Management. Credit Management presents aging data as data points in several pages, such as from the Aging Details and Credit Summary pages.
      • Take a note, Credit Management calculates its own aging data after pulling certain pieces of information from Oracle Receivables tables.
      • Take a note , Credit Management and Oracle Receivables aging data can be different beacuse of due dates and collection dates.In Receivables, the primary concern is around collection
    • Default Customer Credit Classification :Credit classification assignments can either be assigned by a previously completed credit review, or assigned on the customer profile. Default Value is High Risk
    • Period for Time Sensitive Data :Select the period for which credit data will be collected into the summary tables and used in scoring during a credit analysis. Reviewing summarized order, invoice, and payment data over a period of time can provide you with an overall picture of a customer’s past credit relationship with you, and can help to predict future performance. Default Value is 12
    • Application Numbering Option :Indicate if you want Credit Management to automatically assign a number to each credit application.Default Value is YES
    • Exchange Rate Type :Pick either default exchange rate type that Credit Management will use to convert foreign currency data points to your credit currency during a credit analysis. You can select Corporate, Spot, or User.Default Value is Corporate
    • DSO Days : You have to indicate the time period that Credit Management uses to calculate Days Sales Outstanding (DSO) and Delinquent Days Sales Outstanding (DDSO).The default is 90 days.
  4. Define Hierarchical Relationship :To provide global credit limits that are shared by some or all entities within a complex, multinational organization, you can define credit relationships between parties using Oracle Trading Community Architecture Relationship Manager.
  5. Credit Mgmt Profile Options
  6. Populate Summary Tables
  7. Setup Credit Usage Rules
    • Credit usage rule sets are used as follows:
      • In Oracle Order Management, 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 currencies for global credit checking.
      • In Oracle Credit Management, credit usage rule sets ensure that all transactions for the specified currencies are converted to the credit currency and included in data point calculations in the case folder.
    • In Oracle Credit Management, credit usage rules are required. Even if you perform credit reviews in only one currency, or conduct your business in only one currency, you must still set up one credit usage rule.
  8. Remove existing credit limits from Profile Classes and propagate changes to all customers (Optional) : This setup is used to pull and tag dafault setting of customer master.
  9. Assign Credit Info to Profile Classes (Default Credit Analyst, Default Classification)
    • Updating Customer Profile Classes : in AR Customer Profile Classes window, use the Collectors region on the Profile Class tab to assign credit information to your customer profile classes:
    • Classification :use the Assign Customer Credit Classification program.
    • Periodic review cycle :Update Periodic Credit Review Program.
    • Analyst : you can assign credit analysts to indicate who is responsible for monitoring the creditworthiness of the account and for assisting in the resolution of credit-related issues.
      • Take a note, Oracle Credit Management looks for an assigned credit analyst at the customer profile, only after other locations fail to provide an assignment.
  10. Assign Credit Usage Rule
  11. Credit Management Application Workflow :The Credit Management Application workflow manages the process flow of gathering and analyzing account or prospect credit data, and making and implementing credit decisions.
    • Enable Workflow Agent Listener (If not enabled)
    • Schedule WF Agent Listener (WF_DEFERRED)
    • Schedule WF Background for Credit Management
  12. Create hierarchical Party Relationship (Optional) : This is required if you have requirement to keep the customer setup as-is, a hierarchical relationship was created between parent party and its customers.
  13. Define Scoring Model
    • A scoring model is one of the primary credit review tools that Oracle Credit Management uses to assess the creditworthiness of your customers
    • Scoring models include the data points and scoring method that are appropriate for a particular credit review. When defining scoring models, for each data point, (1) indicate a score for each range of values and (2) optionally assign a relative weighting factor.
    • During a credit analysis, Credit Management uses the scores that you assigned to each data point range of values to calculate a score. The lower the credit score, the greater the credit risk.
  14. Define Checklist
    • In Oracle Credit Management, you document your enterprise’s credit policies via user-defined credit checklists. Using various checklists, you manage the credit analysis process by defining the required and optional data points that are included in the credit review.
    • Defining a checklist is a multi-step process, during which you can select checklist criteria in the form of data points from a multitude of sources. Credit Management uses these checklists in two places:
      • Credit application – The checklist determines which fields are required on the application.
      • Credit analysis – The checklist identifies what data should be automatically collected and displayed in the case folder.
    • When defining a checklist, you select a credit review type and credit classification combination. During a credit review, Credit Management uses the intersection of the credit review type and the applicant’s credit classification to select the appropriate checklist to use for the credit analysis. The higher the customer credit classification risk, the more stringent the credit policy (scoring model).
    • Additionally, your enterprise defines these credit classifications:
      • High Risk
      • Moderate Risk
      • Low Risk
  15. Assign Credit Analyst
  16. Define Automation Rule :For any scoring model, you can define a set of automation rules to guide the implementation of credit recommendations without user intervention. Automation rules let a credit review proceed uninterrupted through the workflow, during which a credit recommendation is automatically implemented based on the score that the scoring model calculates.
  17. Define AME Rule :For credit recommendations that require approval, Credit Management works with Oracle Approvals Management (AME) to manage the list of required approvers.

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