Credit Ratings


System Maintenance Menu -> Configure System Settings -> Customer Management Tab -> General Settings -> Credit Ratings

Credit Ratings are maintained on the Customer Management tab of the Configure System Settings.
An operator must be assigned a Security Role that allows permission to the Customer Management - Credit Ratings in order to access this table.

The customer's credit rating can be used to flag customers with a credit warning, or to prevent further rental and sales activity, based on exceeding the Credit Limit designated for the customer, or based on unpaid invoices that are past the due date.
The credit rating is also used to determine when the customer's account should appear on the collection Print Call List.
For example, if a B Credit Rating has been assigned with Call Days set at 45, then the customer's invoices will appear on the Collection Call List when the invoices are at least 45 days old.

Example Credit Ratings:

Rating codes can be altered or customized to suit your firm.
The prompts are:

RATING
Enter the 1 character code.
This can be a letter or number.

CALL DAYS
Enter the call days number for each rating to your firm's requirements.
The Call Days is used in generating the Print Call List.

DESCRIPTION
Enter the description of this credit rating.
This description will display on the screen when a credit warning message is generated.

ALLOW ACTIVITY
This field is disabled and does not apply if the Continue Document on Failed Credit Check parameter is not activated in the Company Security Parameters, as no over-ride will be allowed on the document with the exception of the A/R Invoice, Work Order and W.O. Estimate.

If your firm is configured to allow a document to be created on a failed Credit Check, then this 'Allow Activity' field controls activity when the customer has exceeded the Credit Limit assigned to him in Customer Credit Information, as follows:

  • Type Y (YES) if customers having this Credit Rating should be allowed rental and sales activity regardless of their Credit Limit.
  • Type N (NO) if customers having this Credit Rating should NOT be allowed rental and sales activity.
    A warning will be displayed on the screen and the operator will not be able to proceed with the transaction for the customer.
  • Type W (Warning) to generate a credit warning on the screen when the Credit Limit is exceeded, however after the operator has acknowledged the warning the document can still be created.

When a Customer Credit Warning displays on the screen, a window is provided to view a list of outstanding invoices for this customer with the aging information.

Over-Ride Security Controls:
A flag in the Company Security Parameters can be set requiring that a Reason Code be entered if a warning is generated, before proceeding with the document.

Security Roles and password security can also be setup in Module Passwords.
Any operator without permission as determined by his roles assigned in Operators, would then have to enter the correct password to proceed with the document.
The module name for Credit Rating security in Module Passwords is ARCR.
For more information on this security feature refer to System Security Overview.

Note: The above two security measures apply only in Add mode. Neither the reason code nor password apply in Change mode.


CHECK O/S A/R
This 'Check Outstanding A/R' flag controls continued activity when the customer has unpaid posted invoices that are past their Due Date and past an extension period.
It can be used to set the extended "grace" period beyond the Due Date.

Uncheck this box to skip the process to check unpaid invoices on account that are past due.

Check this box to initiate an extended check for invoices posted on account that are overdue for payment, when a contract, reservation, etc. is entered for a customer having this credit rating.
The following fields only apply when the Outstanding A/R invoices are to be checked:

O/S DAYS
Enter the number of days to allow for unpaid invoices, before the invoices past this number of days are questioned. The Invoice Date is the start point for this count regardless of the Due Date, and based on the 'O/S Days' value it can allow a grace period to extend passed the original Due Date.
Example:
If the Invoice has a regular Due Date of 30 days and this O/S Days is set to 60, at 60+ days from the Invoice Date the 'Allow Activity' flag would then come into play and would allow, warn or forbid activity accordingly.

If there are invoices past the 'O/S Days' defined, the following Allow Activity options apply.


ALLOW ACTIVITY
Select the action to apply if a customer has unpaid invoices older than the O/S Days as set in the previous field.
  • Type N (NO) if customers having this rating should NOT be allowed rental and sales activity when there are over-due invoices on account past the O/S Days.
    A warning will be displayed on the screen and the operator will not be able to proceed with the contract, invoice, etc for the customer.
  • Type W (Warning) to generate a Credit Warning on the screen when there are over-due invoices past the O/S Days, however after the operator has acknowledged the warning, the contract invoice, etc, can be created.
    When the Customer Credit Warning displays on the screen, a window is provided to view a list of outstanding invoices for this customer, with the aging information.
    Credit Ratings having this flag, also respect the security 'Reason Code' processing as explained above.

  • Type Y (YES) to initiate the check for over-due invoices on account and to trigger the warning if invoices over the O/S Days are found, but to allow activity without requiring a reason code to continue.
    When the Customer Credit Warning displays on the screen, a window is provided to view a list of outstanding invoices for this customer, with the aging information.

If Credit Ratings Are Not Used:
If your firm decides not to assign credit ratings to individual customers, then do not select the Blank Credit Rating selection option when Print Call List is run, or every customer will appear on the call list.

ACTIONS:
Additional actions provided by buttons on the Credit Ratings screen include:


Topic Keyword: ARCR01
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