Line Level Credit Check of Sales Orders

1. Line Level Credit Check
Oracle EBS Release 12.1.1
Introduction
Prior to 12.1.1, the Line level credit checking is performed against order line
bill to sites.
The credit check engine groups all the order lines belonging to the same Bill to
Site. When an order line fails credit check (Credit Exposure> credit Limit) then
all the other lines grouped with in the same bill to site are also placed on hold.
The new line level credit-checking enhancement provides opportunity to utilize
the maximum exposure given to the end customer.
For example we assume that the end Customer has a Credit Limit is $2000 and
current exposure is $0.
Credit limit $2000
Line NO Ship/Req. Date Priority code Line value
1 4/19/07-4/19/07 Standard 100
2 4/20/07-4/20/07 Standard 200
3 4/19/07-4/19/07 Standard 1000
4 4/19/07-4/19/07 High 400
5 4/19/07-4/20/07 High 900
6 4/20/07-4/19/07 High 300
With the earlier functionality, the hold will be applied on all the lines.
With this new functionality the hold will be applied to only those lines which
exceed the credit limit of $2000. i.e. line 5 will be applied credit hold and the
other lines (the sum of lines value <=$2000) will not be applied hold and these
lines will be released.

2. How does this feature work?
A new system parameter ‘Credit Hold Sequence for Order Lines’ introduced
control, which lines in the order should get released and which lines are to be
placed on hold.
Some of the lines which pass through the credit checking in the same bill to
will NOT be placed on credit check Hold and is decided by the value set for the
parameter
‘Credit Hold Sequence for Order Lines’.
All lines will be ordered by the parameter value and released until the credit
limit is met.
Setup
1. Set the System Parameter ‘Credit Hold Sequence for Order Lines’ to any of
the desired value.
Following are the five values available as options you can set for the parameter
‘Credit Hold Sequence for Order Lines’.
New Parameter Parameter Values
Credit Hold Sequence for Order
Lines
Option 1: All Lines (Default)
Option 2:
Schedule_Ship_Date/ request_Date, shipment_Priority_Code, line #
Option 3:
Shipment_Priority_Code, Schedule_Ship_Date/Request_Date, line#
Option 4: uninvoiced line amount ascending
Option 5: uninvoiced line amount descending

3. It is important to note that this new feature will not behave as expected if one
of the following condition is met.
1. The System Parameter value is ‘All Lines’
2. The action performing credit check is ‘BOOKING’
3. In the Credit Rule being used, flag 'Include Un-invoiced Orders' is
checked.
If any of the above condition is true, then the old credit check behavior will be
maintained. (i.e. All the lines will be put on hold based on the line grouping
done based on the same bill to site ) .
2. Define Credit Check Rule

4. 3. Assign Credit check rule to the transaction type
The line level credit check behavior for each of the five options is discussed as
below.
Option 1
All Lines
If the value is set to all lines or Null then there is no partial release of holds
allowed.
I.e. The default behavior of summing up the line amounts with the same bill to
Address and placing all lines on hold for that bill to, if the summed total
violates the credit limit.

5. Scenario tested for option 1 – Credit limit $150
Line NO Ship/Req. Date Priority code Line value Hold
1 06/08/09-06/07/09 Standard 10 Line on hold
2 06/08/09-06/07/09 Standard 20 Line on hold
3 06/08/09-06/07/09 Standard 30 Line on hold
4 06/09/09-06/09/09 High 40 Line on hold
5 06/08/09-06/07/09 High 50 Line on hold
6 06/09/09-06/09/09 High 60 Line on hold
Querying the additional order information, the hold tab indicates that all the
lines went on Credit check hold.
Option 2
“Schedule Ship Date/Request Date, Shipment Priority, Line Number”

6. When the lines of an order are pick released, in case of option 2 above, the
lines will be ordered first based on the value “Schedule Ship Date/Request
Date, Shipment Priority, Line Number” and then the lines will be released until
the credit limit is met.
At picking if multiple lines share the same schedule date/request date,
shipment code will be assessed, and if the lines all share the same shipment
priority then the lines will be held in order of line number when credit limit is
violated
Option 2 – Credit limit $150
Line NO Ship/Req. Date Priority code Line value Hold
1 06/08/09-06/08/09 Standard 10
2 06/09/09-06/09/09 Standard 20 Line On Hold
3 06/08/09-06/08/09 Standard 30
4 06/08/09-06/08/09 High 40
5 06/08/09-06/08/09 High 50
6 06/09/09-06/09/09 High 60 Line on Hold
Querying the additional order information, the hold tab indicates that lines 6.1
and 2.1 went on Credit check hold.

7. Option 3
“Shipment Priority, Schedule Ship Date/Request Date, Line Number”
When the lines of an order are pick released, in case of option 3 above, the
lines will be ordered first based on the value “Shipment Priority, Schedule
Ship Date/Request Date, Line Number” and then the lines will be released
until the credit limit is met.
Option 3 – Credit limit $150.00
Line NO Ship/Req. Date Priority code Line value Hold
1 06/08/09-06/08/09 Standard 10 Line on hold
2 06/09/09-06/09/09 Standard 20 Line on hold
3 06/08/09-06/08/09 Standard 30 Line on hold
4 06/08/09-06/08/09 High 40
5 06/08/09-06/08/09 High 50
6 06/09/09-06/09/09 High 60 Line on hold

8. Option 4
“Un-invoiced line amount ascending”
When the lines of an order are pick released, in case of option 4 above, the
lines will be ordered first based on the value “Uninvoiced line amount
ascending” and then the lines will be released until the credit limit is met.
Option 4 – Credit limit $150.00
Line NO Ship/Req. Date Priority code Line value Hold
1 06/08/09-06/08/09 Standard 10
2 06/09/09-06/09/09 Standard 20
3 06/08/09-06/08/09 Standard 30
4 06/08/09-06/08/09 High 40
5 06/08/09-06/08/09 High 50
6 06/09/09-06/09/09 High 60 Line on hold
Will release hold on lines in the sequence specified in the value

9. Option 5
“Uninvoiced line amount descending”
When the lines of an order are pick released, in case of option 5 above, the
lines will be ordered first based on the value “Uninvoiced line amount
descending” and then the lines will be released until the credit limit is met.
Option 5 – Credit limit $150.00
Line NO Ship/Req. Date Priority code Line value Hold
1 06/08/09-06/08/09 Standard 10 Place hold
2 06/09/09-06/09/09 Standard 20 Place hold
3 06/08/09-06/08/09 Standard 30 Place hold
4 06/08/09-06/08/09 High 40
5 06/08/09-06/08/09 High 50
6 06/09/09-06/09/09 High 60

10. Option 5
“Uninvoiced line amount descending”
When the lines of an order are pick released, in case of option 5 above, the
lines will be ordered first based on the value “Uninvoiced line amount
descending” and then the lines will be released until the credit limit is met.
Option 5 – Credit limit $150.00
Line NO Ship/Req. Date Priority code Line value Hold
1 06/08/09-06/08/09 Standard 10 Place hold
2 06/09/09-06/09/09 Standard 20 Place hold
3 06/08/09-06/08/09 Standard 30 Place hold
4 06/08/09-06/08/09 High 40
5 06/08/09-06/08/09 High 50
6 06/09/09-06/09/09 High 60