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Overview

Establish and maintain Credit, Charges & Commissions parameters.

Terminology

Unbilled Orders: Sum of all Sales Order Lines for a given Customer Master that are at least at a Firmed status and have not been added to an 'Approved' Sales Order Invoice. This field will remain blank if the Credit Check Method does not include Unbilled Orders, the default method (AR Balance vs. Credit Limit).

AR Balance: Accounts Receivable is the balance due from a Customer for goods or services delivered (Invoiced) but not yet paid for. The value is displayed on the Customer Master Current AR Balance value, which in Rootstock is calculated as the Sum of SO Invoice Lines for a given Customer Master that have been approved and posted, but not yet matched with a Payment. The maintenance of this value is different depending on which Financial Package is in use:

Rootstock Financials: Value is automatically updated on the Rootstock Customer Company record and set on Customer Master instantly.
FinancialForce & Accounting Seed: The value is automatically incremented as invoices are processed but must be updated manually (to sync processed invoices) using the Update AR Balance button, either on the Customer Master or Company Master page (in edit mode).
Intacct: Value fetched from Intacct for given Customer Master by pressing button Update Intacct AR Balance on Customer Master > Credit tab (in edit mode) or for given Company Master by pressing button Update Intacct AR Balance on Company Master page (in edit mode).

NOTE image.png NOTE In Finance, this field 'Current AR Balance' carries the sum of the SO Invoice Lines, Debit Memos, and Credit Memos for a given Customer Master.

EXAMPLE image.png EXAMPLE Consider, Customer 'A' has a Sales Order Invoice Line costing '25', a Debit Memo of '50', and a Credit Memo of '100'. So the 'Current AR Balance' will be '-25' [i.e., 25+50+(-100)].

Credit Limit: User-defined Credit Limit for a given Customer Master, set on Customer Master Credit Tab

Unbilled Order Limit: User-defined Unbilled Order Limit for a given Customer Master, set on Customer Master Credit Tab. This would include any firm order lines not yet included in an Approved Invoice.

Fields

Credit Check Method: This value defines the Credit Check method for Sales Order-related activity for this Sales Division. The default is ‘AR Balance vs. Credit Limit’. Options are:

AR Balance vs Credit Limit
Unbilled Orders vs Unbilled Order Limit
AR Balance plus Unbilled Order vs Credit Limit
AR Balance vs Credit Limit and UBO vs UBO Limit

If the Credit Check at Entry Time below is True, and the value of the Order being added causes the Credit Limit to be exceeded, the Sales Order is automatically placed on Credit Hold. For the other options (Credit Check at Allocation Time, Credit Check at Pick Time or Credit Check at Shipment Time) is True, a warning message is presented when the action is attempted, but the Order is not placed on Credit Hold - the action is just prevented.

The following explains the different credit checking methods. Regardless of the credit checking method selected, once Sales Orders are placed on hold, they are removed from hold using the Credit Release process page, which is covered in detail in that help section. The Credit Hold referred to below is the field on the Sales Order, NOT the Customer Master. The Customer Master Credit Hold field is manually set or cleared.

AR Balance versus Credit Limit: When the Customer AR Balance reaches or exceeds the Credit Limit amount on a Sales Order, all future Sales Orders will be placed on credit hold until the Customer AR Balance drops back below the Credit Limit amount. The order line that exceeds the Credit Limit will not put the order on Credit Hold, but the next order line will.
Unbilled Orders versus Unbilled Orders Limit: When the Customer Unbilled Orders amount reaches the Unbilled Orders Limit amount, all future Sales Orders will be placed on hold until the Customer Unbilled Orders amount drops back below the Unbilled Orders Limit amount.
AR Balance plus Unbilled Orders versus Credit Limit: When the Customer AR Balance plus the Customer Unbilled Orders amount (added together) reaches the Credit Limit amount, all future Sales Orders will be placed on hold until the sum of the Customer AR Balance plus the Customer Unbilled Orders amount drops back below the Credit Limit amount.
AR Balance versus Credit Limit and Unbilled Orders versus Unbilled Orders Limit: When the Customer AR Balance amount reaches the Credit Limit amount, AND the Customer Unbilled Orders amount reaches the Unbilled Orders limit, all future Sales Orders will be placed on hold until one of the factors drops back below the limit. Orders are only placed on hold when both balance amounts have exceeded the associated limit.

Allow Direct Credit Hold Release: When checked, allows the Sales Order Header Credit Hold flag on individual Sales Orders to be cleared by inline edits and workflows, allowing that particular Sales Order to be processed, outside the normal credit checking parameters.

User-added image IMPORTANT If you do not want users to be able to remove the credit hold from the Sales Order Header, make sure your user's profile or permission sets do not allow them to 'Edit' the 'Credit Hold' field on the Sales Order Header object.

Credit Organization: The Credit Organization for this Sales Division. It is populated from Organizational Depts. It is optional. Therefore, it can be left blank.

Credit Check at Entry Time (Firm Line): When Checked, indicates that a credit check is done, using the defined Credit Check Method, when the Sales Order line is firmed. If the new order causes the Credit Limit to be exceeded, the Order is placed on credit hold.

Credit Check at Allocation Time: When Checked, indicates that a credit check is done, using the defined Credit Check Method, when a Sales Order Line is Allocated. If the Customer is over their credit limit a warning message is presented to the user and the Allocation is prevented.

Credit Check at Pick Time: When Checked, indicates that a credit check is done, using the defined Credit Check Method, when a Sales Order Line is Picked. If the Customer is over their credit limit a warning message is presented to the user and the Pick is prevented.

Credit Check at Shipment Time: When Checked, indicates that a credit check is done, using the defined Credit Check Method, when a Sales Order Line is Shipped. If the Customer is over their credit limit a warning message is presented to the user and the Shipment is prevented.

Use Shipping Charge Detail (Default): When Checked, Shipping Charge Details may be used. Checkbox enables button on the Shipper where details can be added.

Default Freight Markup Percent: When set, this is the Freight Markup Percent value defaulted to the Sales Order Header, which can then be overridden. This markup percentage is used to inflate the freight charges passed along to the Customer.

NOTE image.png NOTE The maximum allowed percentage on this field 'Default Freight Markup Percent' is '999.99'.

Pct of Commission Paid at Invoice: This value defines the Commission percent to be paid when an SO Invoice is approved for this Sales Division.

Pct of Commission Paid at Cash Receipt: This value defines the Commission percent to be paid at the time of the posting of a cash receipt for this Sales Division.

Charge Sales Tax on Freight: When Checked (defaults to unchecked), it indicates that Sales Tax can be charged for freight charges for this Sales Division.

Charge Sales Tax on Handling: When Checked (defaults to unchecked), it indicates that Sales Tax can be charged for handling charges for this Sales Division.

Charge Sales Tax on Packaging: When Checked (defaults to unchecked), it indicates that Sales Tax can be charged for packaging charges for this Sales Division.

Sum Freight Charge from Order Lines: When Checked (defaults to unchecked), it indicates that freight charges are to be summed for all Sales Order Lines on a given Sales Order for this Sales Division.

Sum Packaging Charge from Order Lines: When Checked (defaults to unchecked), indicates that packaging charges are to be summed for all Sales Order Lines on a given Sales Order for this Sales Division.

Sum Handling Charge from Order Lines: When Checked (defaults to unchecked), indicates that handling charges are to be summed for all Sales Order Lines on a given Sales Order for this Sales Division.

Allow Allocation of Held Lines: When enabled, this field allows Sales Order Lines that are held (Manual or Credit Hold) to be allocated. Allocation Credit Checking is unaffected, as are the other Order Fulfillment steps.

Invoice Credit Product: This field references the Rootstock Product used to auto-create Sales Invoice Credit Lines to deduct Seller-Paid Bank Fees from Sales Invoices.

Settings

Title	SO Control Credit, Charges & Commissions Tab

URL Name	SO-Control-Credit-Charges-Commissions-Tab

SO Control Credit, Charges & Commissions Tab