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Pre-requisities , Credit hold & credit check ….

What is the main difference between Credit check and Credit Hold?

Credit Hold is used to prohibit orders from being progressed beyond entry or booking, from a specific customer. It is not dependent on Credit Limit or Previous Balance or any criteria. This is normally used when you need to immediately stop all ordering for a customer.

Credit Checking allows you to control which customer site is affected, what the credit limit is, what is included in the credit check, etc.Credit Management provides even more control and functionality.

You can use Credit Checking and Credit Hold together or separately.

You Can disable to Credit Hold and enable Credit Check.

You can use Credit Check and Credit Hold together, if you think you need both functionalities. As indicated, Credit Hold will prohibit any
processing of the order. Credit Check is used to evaluate the customer's credit limit, outstanding balance, etc. It will function differently depending on numerous setting and situations. In case if you are implementing these you need to review OM Documentation to see all the various ways you can chose to opt credit checking.

Do you need to have 'Credit Management' module installed in our instance to use Credit Check?

You do not need to have the Credit Management module installed to use standard credit checking.

Does Credit Check will not prevent an order from Pick Releasing and Shipping if we set it up at those levels in the Transaction Type setup?

Defining Credit Checking on the Transaction at Pick Releasing and Shipping SHOULD cause Credit Checking to occur before an order picks or ships. However, there are other settings which impact this. For one, the behavior will depend on whether you have defined Order or Line level credit checking. The credit check will depend on the credit exposure existing at the time of pick release or ship. That is impacted by your credit Rule. Also, the credit checking behavior is dependent on how you have set up the option Override Manual Release on the Credit Checking Rule.

There is something called "OVERRIDE MANUAL RELEASE" which you can use this options. If you are, choose the number of Days to Honor Manual Release.

The Override Manual Release checkbox controls whether the credit check process will be triggered even if holds were released manually or not.

The Override Manual Release checkbox, used in conjunction with Days to Honor Manual Release field, enables you to define the duration (number of days) you will forego additional credit checking if an order or line credit check hold is released manually. Manually released holds are honored only during processes that are performed after Booking such as Picking, Packing, and Shipping.

If Override Manual Release is enabled, the credit checking process will validate if the release date is within the interval defined by the value of Days to Honor Manual Release. If the value is within the range defined, then manually released holds will be honored and additional credit checking is not performed. If the value is not within the range defined, credit checking can occur again and credit check holds can be applied if the order or lines fail the credit check process.

For example, suppose you have defined a Credit Check Rule in which you have enabled the Override Manual Release check box, with a value of 15 within the Days to Honor Manual Release field. Assume that this credit check rule is assigned to the transaction type as a Credit Check Rule for Booking and Shipping. If you manually release an order or line from credit check hold after Booking, and if you ship the order or order line within 15 days, Order Management will not enable credit checking to occur again during Shipping. However, if you ship after day 15, then Order Management will enable the credit checking process to be invoked again.

That means there is no guarantee that Credit Checking will work as you expect, just by defining the activities on the Transaction Type.

Hope this helps.