Credit Verification Rules: Implementation Activity

In the following implementation activity, you will learn how to set up credit verification rules for specific customers.

Attention:
This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that SweetLife Fruits & Jams has decided to start tracking credit limits and days past due for some of the customers. The COFFEESHOP customer has multiple unpaid documents and a large balance. This customer should be put on credit hold if the total balance of its open documents exceeds $2,000. For this customer, the Credit Limit verification rule should be used.

The GOODFOOD customer sometimes fails to pay the documents in time, so the Days Past Due verification rule should be used for this customer. Acting as Yona Jones, an accountant in charge of the Credit Control team, you need to set up the credit verification rules for these customers.

Process Overview

In this activity, on the Customers (AR303000) form, you will set up credit verification rules for the COFFEESHOP and GOODFOOD customers. On the Accounts Receivable Preferences (AR101000) form, you will review the accounts receivable preferences settings and make sure that the Hold Documents on Failed Credit Check check box is selected.

System Preparation

Before you start setting up credit verification rules, launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded. You should sign in as an accountant with the jones username and the 123 password.

Step 1: Setting Up Credit Verification Rules

To set up credit verification rules for specific customers, do the following:

  1. On the Customers (AR303000) form, open the COFFEESHOP customer.
  2. On the Financial tab (Credit Verification Rules section), specify the following settings:
    • Credit Verification: Credit Limit
    • Credit Limit: 2000

    The specified credit limit means that the maximum total balance of open documents of the customer in the system should not exceed the credit limit ($2,000). The Available Credit box shows the difference between the limit, the open order balance, and the customer balance displayed on the form, which in this case is –6,041.04.

  3. On the form toolbar, click Save to save the changes.
  4. In the Customer ID box, select GOODFOOD.
  5. On the Financial tab, specify the following settings:
    • Credit Verification: Days Past Due
    • Credit Days Past Due: 15
  6. On the form toolbar, click Save to save the changes.

Step 2: Reviewing the Accounts Receivable Preferences

To review the accounts receivable preferences, do the following:

  1. Open the Accounts Receivable Preferences (AR101000) form.
  2. On the General tab, make sure that the Hold Documents on Failed Credit Check check box is selected.

    Because this check box is selected, users will not be able to release documents for the customers who failed credit check.