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Dual credit control for customer based on amount and days outstanding.

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Dear experts,

I need to set a customer credit limit based on the number of days outstanding of invoices as well as amount outstanding. can this done based on the customer wise.

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Giorgio Bonacorsi 971 on at

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Hello,

To my knowledge, we can set the blocking based on the attribute you mentioned (days of outstanding + amount outstanding). The credit limit amount calculation is based on the risk score (you can see: Credit and collections> Setup> Credit management setup> Risk> Automatic credit limits). Technically, you can set the risk score based on our needs. Keep in mind the value allocated on the customer cards should be inserted/maintained manually.

However, before discussing technical solutions, I suggest talking with the K-user about the effective meaning of the risk rank in the company.

The outstanding, not a risk metric, is the current expression of the relationship with the customer (pay or not their invoice). The risk metrics are usually evaluated through key summary index: ex. region of the customer, credit rank (AAA, A+, B, etc..).

It's probably better for k-user to handle a credit rank evaluation (AAA+, A, etc...) on the customer card and let the system block the sales order in case of current outstanding.

Thank you,

Giorgio Bonacorsi

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Hana Xue Microsoft Employee on at

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Hi,
As supplementary content：
Details of the process of setting up customer credit limits in FO are mentioned in the link below, along with FAQs about credit limits. Please check them out.
https://learn.microsoft.com/en-us/dynamics365/guidance/business-processes/order-to-cash-monitor-customer-credit-collections-set-customer-credit-limits#related-resources
Credit management setup - Finance | Dynamics 365 | Microsoft Learn
Credit limits for customers - Supply Chain Management | Dynamics 365 | Microsoft Learn
Best Regards,
Hana

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