Automatic Credit Verification: Process Activity

The following activity will walk you through the process of analyzing how credit verification rules affect customers' credit check and removing credit hold for an invoice.

Story

Suppose that credit verification rules have been defined for some of SweetLife customers. On January 30, 2024, the COFFEESHOP customer bought online training services, but failed the credit check. On the same date, the GOODFOOD customer bought consulting services, but also failed the credit check.

Yona Jones called the COFFEESHOP customer and they told him that they sent the payment the day before but it had not yet been received. Yona decided to release the invoice from credit hold.

Acting as Yona Jones, you need to create two invoices for these customers and analyze how the credit verification rules set up earlier affect the customers’ credit check. Then you need to remove credit hold for an invoice of the COFFEESHOP customer.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

  • On the Enable/Disable Features (CS100000) form, Standard Financials, Multibranch Support, and Multicompany Support features have been enabled.

  • On the Accounts Receivable Preferences (AR101000) form, the Hold Documents on Entry and Hold Documents on Failed Credit Check check boxes have been selected in the Data Entry Settings section.

  • On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) and COFFEESHOP (FourStar Coffee & Sweets Shop) customers have been configured.

Process Overview

In this activity, on the Invoices and Memos (AR301000) form, you will create two invoices for customers that failed the credit check. On the same form, you will remove credit hold for one of the invoices and release the invoice.

System Preparation

Before you begin analyzing automatic credit verification, do the following:

  1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as an accountant by using the jones username and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 1/30/2024. If a different date is displayed, click the Business Date menu button, and select 1/30/2024 on the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.
  3. As a prerequisite activity, in the company to which you are signed in, be sure you have set up credit verification rules, as described in Credit Verification Rules: Implementation Activity.
  4. On the Company and Branch Selection menu on the top pane of the MYOB Acumatica screen, select the SweetLife Head Office and Wholesale Center branch.

Step 1: Creating AR Invoices

To create an AR invoice for each customer, do the following:

  1. On the Invoices and Memos (AR301000) form, add a new record.
  2. In the Summary area, specify the following settings:
    • Type: Invoice
    • Customer: GOODFOOD
    • Date: 1/30/2024 (inserted automatically)
    • Post Period: 01-2024 (inserted automatically)
    • Description: Consulting

    Notice that the system displays a warning near the Customer box that the customer's days past due limit has been exceeded.

  3. On the table toolbar of the Details tab, click Add Row and specify the following settings for the added row:
    • Branch: HEADOFFICE
    • Transaction Descr.: Consulting
    • Ext. Price: 380
  4. On the form toolbar, click Save to save your changes.
  5. On the form toolbar, click Remove Hold. The status of the document has changed to Credit Hold because the Hold Document on Failed Credit Check check box is selected on the Accounts Receivable Preferences (AR101000) form and the customer's document is on credit hold. You cannot release this document. (If the check box was cleared, you could release any document of the customer despite the warning.)
  6. On the form toolbar, click Save to save your changes.
  7. On the form toolbar, click Add New Record to enter the other invoice and in the Summary area, specify the following settings:
    • Type: Invoice
    • Customer: COFFEESHOP
    • Date: 1/30/2024 (inserted automatically)
    • Post Period: 01-2024 (inserted automatically)
    • Description: Online training

    Notice that the system displays a warning near the Customer box that the customer's credit limit has been exceeded.

  8. On the table toolbar of the Details tab, click Add Row and specify the following settings for the added row:
    • Branch: HEADOFFICE
    • Transaction Descr.: Online training
    • Ext. Price: 1450
  9. On the form toolbar, click Save to save your changes.
  10. On the form toolbar, click Remove Hold. The status of the document has also changed to Credit Hold. You now need to remove the credit hold for this document.

Step 2: Removing Credit Hold for the Document

To remove the credit hold for the document, do the following:

  1. While you are still viewing the invoice on the Invoices and Memos (AR301000) form, on the form toolbar, click Remove Credit Hold.

    The document's status has changed to Balanced and you can now release the document.

  2. On the form toolbar, click Release. The document's status has changed to Open.