Customer Credit Hold Remove Automatically

Dear experts, How to remove Customer Credit-Hold on Receipt of payment.

On Receipt of payment from Credit-Hold Customer, System review the total outstanding the customer. If the total outstanding is less than the limit, System will automatically remove credit hold of the customer.

Is there any BPM or Customization for this?

Do you have access to a training environment? I seem to remember something like that in the Tools/BPM section. You might give it a search there.

Joe

Yes, We have access of training Environment.

Is there any BPM or Customization for this?

Credit can be recalculated with the Mass Credit Information Update process under Accounts Receivable > General Operations.
This process can be put on a schedule as some of my clients have done.
Embedded help has a very good explanation of what the process does and does not do.

Depending on what version you are on, there is now AR Aging Holds that can be configured and a process that goes with it. This is a second type of Credit Hold that can be conditionality triggered based on unpaid invoices and not just a credit balance. The two credit holds are independently maintained but in Order Entry either is interpreted as a Credit Hold against the Order. There is also a good Embedded help document on that as well.

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Is there one that’ll remove non-aging credit holds if the customer pays up?

Randy,
There is only the Mass Credit Information Update but it can be ran in different ways and you can filter on Customer, Customer Group & Terms. It DOES remove Credit Hold on a customer after payment, IF that is appropriate. The best way to answer this question is with the field help. Please note I think you have to be on10.2.200 for the Aging Credit Hold option. Also, I would strongly recommend running this in test first so you understand what it will do. First run a BAQ against customer table to see the status of all Customer Credit/Aging Hold, then run the process and then review the BAQ results again and note what was changed:

Mass Credit Information Update

Use the Mass Credit Information Update command to recalculate the current credit status for each customer. All changes that you made within the Customer Credit Manager will be applied to records throughout the application.

For example, if you have received payments from customers that should remove their credit hold, you can run this process for all customers, or a subset of customers, and the system will remove their credit hold.

You can run this process for credit hold and/or aging hold customers.

On the Filters sheets, you can filter by Customer, Customer Group, and Terms Code.

Also, the update is a process, therefore you can assign it to a process on the Selection sheet.

For credit hold, the update process performs the following tasks: •Places customers on credit hold if the total of their open credit is higher than the credit limit assigned to the customer.
•Places all open orders and unposted miscellaneous invoices on credit hold for customers that were placed on credit hold. Orders and miscellaneous invoices display as Credit Hold in Customer Credit Manager and the Credit Hold indicator displays in Order Entry, Order Tracker, AR Invoice Entry and AR Invoice Tracker.
•Takes customers off credit hold if open credit is no longer above the credit limit assigned to the customer.
•Takes open orders and unposted miscellaneous invoices off credit hold for customers that were taken off credit hold by the process.

For aging hold, the update process performs the following tasks: •Places customers on aging hold if they have one or more open invoices that meet the criteria of the aging code assigned to the customer.
•Places all open orders on credit hold for customers that were placed on aging hold. Orders display as Credit Hold in Customer Credit Manager and the Credit Hold indicator displays in Order Entry and Order Tracker.
•Places all unposted miscellaneous invoices on aging hold for customers that were placed on aging hold. Unposted miscellaneous invoices display as Credit Hold in Customer Credit Manager and the Credit Hold indicator displays in AR Invoice Entry and AR Invoice Tracker.
•Takes customers off aging hold if overview invoices have been paid or have had credit memos applied to them.
•Takes open orders off credit hold for customers that were taken off aging hold by the process.
•Takes unposted miscellaneous invoices off aging hold for customers that were taken off aging hold by the process.

Important: This process ignores all customers who are manually placed on Credit Hold or Aging Hold.

Note: For invoices, only unposted miscellaneous invoices are included in this process. All other invoice types, including Credit Memos, Correction Invoices, Cancellation Invoices, Shipment Invoices, Deposit Billing, Advanced Billing, RMAs, Rebates, Field Service Calls, Milestone, Contract Billing, Project Billing, and all posted invoices are NOT included in the mass credit information process.

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I think our problem is Finance is trying to use order prepaid deposits to a particular SO# and the bottom note says it ignores Deposit Billing. We’re setting up a test in a non-live DB for next week.

Hello All,

I want to run Mass Credit Information Update to do the following:

  • Remove customers from credit hold when payment takes them back into credit
  • Take into consideration aged debt and NOT remove a customer from credit hold if they have aged debt but have available credit.

How Do I setup the rules around this?

Do I:

  1. Add all customer IDs to the filter
  2. Add all customer assigned terms codes to the terms code filter
  3. Setup a schedule to run this as frequently as I would like

Is there any pitfalls that we need to be aware of when running this, how frequently should this be run, bearing in mind I would like this to work seamlessly with on account payments.

Kind Regards, Anthony

Hi @Rick_Bird,

I am struggling with getting the Mass Credit Information Update to work for me. I am testing in my pilot environment to see if it works before deploying into live environment. I did a cash receipt to bring a customer who was on aging hold into current standing and ran the process. It did not remove the aging hold from the customer.

Now I have “retain credit override” checked on the company configuration b/c I don’t want to loose the ability to release an order with additional orders going on hold and not making this released order go back on hold.

Thoughts on why it isn’t working for me?

Thanks,
Cyle

Cyle,
A few things, and one change in my advice on scheduling the Mass Credit Information Update.
My change in recommendation: Due to odd buggy like behavior with Epicor not updating the Customer Credit Amounts and Counts, I am now advising my clients to schedule another process BEFORE the Mass Credit Information Update. The process is called ‘Recalculate customer credit’ and is located under System Management > Rebuild > Finance. I usually have this scheduled say around 1a and then the Mass Credit Information Update around 1:30a or 2a depending on how many customers you have and how long it takes to run.

Other comments regarding your struggles with the Mass Credit Information Update:

  • Do not set any filters when running either processes, this will allow them to run against all customers and with the option of alternate Bill To’s this can affect the results.
  • Provide a Log File name for both processes, this will allow you to review what was processed and what was and was not updated, this can help with troubleshooting
  • For Aging Holds you need to confirm that your Aging Hold Codes are setup as you would like, sometimes it’s a misunderstanding.
  • Finally, please note (per the Application Help) the Mass Credit Information Update does NOT change the Credit Holds for any Manually set Credit Holds (this maybe your issue).

Otherwise, I would need more details on your specific test and setup.

Hi Rick,

Thanks for the great information. Based on your instructions, I was able to get everything to work as expected. I was thrown for a loop because one customer would not remove from aging hold. I was able to find another customer on aging hold and was able to get that one to work. Needless to stay, someone manually put a customer on aging hold, which is why it wasn’t working.

In regards to your statement regarding aging holds, I only have one aging hold and it is to kick in when they have invoices 60 days past due and that amount is $10,000 or over…is that a correct statement. Just want to make sure I understand it correctly.

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Thanks again for the help.
Greatly appreciated.

Glad you were able to get it working.
BTW - For Customers that are set Manually, in the past I have create a BAQ Search that displays all Customers on Manual Credit Hold so AR/Collections could quickly search for all Customers on Manual Credit Holds. I also did something similar with the Credit Review Date, where if the Credit Review Date is within the next X number of days or in the past it would show in their BAQ Search results. Both work like a queue system. Many business processes are inherently batch or queue based so having BAQ Searches setup to work with that process makes it easier to work with instead of handwritten notes or Excel lists.
Yes, you are correct on the Credit Aging Hold, except there is an additional 5 days since you have the Payment Processing days set to 5.

Where can I find the Ageing Code maintenance? IF I do a search nothing shows up

If you have access to Aging Code Maintenance, it is in the Accounts Receivable - setup.

I also believe this was introduced in 10.2.XXX.

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Thanks for the advice. I will definitely look into developing a BAQ search for the users to use to track those holds. For now I just sent an excel file from a different BAQ.

Thanks again for the help. Greatly appreciated.

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@Rick_Bird are you still advising this to be ran for your customers, did it mess anything up for anyone or does it run without any issues?

I ran it in my test environment, I just want to make sure it doesn’t corrupt any sales orders or invoices or anything.

-Utah

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Utah,
Yes I do, but I also advise to allow the system to work as intended.
Did it mess up anything? That depends what your users are expecting.
Test this (it’s been awhile since I’ve messed with this further) but if I remember correctly if they automatically go on Credit Hold (Credit Hold Source = Invoice, Order… basically system set, not manual) it will revaluate the customer credit and either set them on hold or remove the hold per their credit limit. Sometimes the results are confusing if your accounting team does not understand what qualifies for a Credit Hold (Open Orders + Open Invoices). If the Invoice is late or not does not matter (that would be aging hold and that works differently - per earlier in this post).
I’m pretty sure if they are put on manual hold it does NOT change the credit hold status, but test that.
Either way, if accounting understands how it works and knows what to expect running these processes nightly can really help them properly manage their credit holds.
One odd thing I’ve ran into that causes some confusion is accounting will have an ‘imaginary’ credit limit but not enter that into Epicor and instead enter 1 and then wonder why the credit hold doesn’t release on their imaginary credit limit. Look out for offline systems that are tracking credit.

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Right on, thank you!

Just set up and scheduled a process set to run recalc and then mass update. Thanks Rick.

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