During a credit review, you collect credit data for your customers and prospects. The type of credit data that you collect for every credit review is determined by the credit checklist.
The credit checklist indicates which data points are required for different types of credit analyses and decisions, and can optionally indicate which scoring model will be used for the review. In this way, the checklist enforces your enterprise's credit policies. See: Defining Checklists.
Credit Management uses credit checklists in two places:
Credit application
Case folder
If the checklist identifies required data points that already exist within Oracle Applications or are calculable, such as available credit, aging, and so on, then Credit Management automatically inserts that information directly into the credit application and case folder.
If the checklist requires data points that must be manually supplied, such as bank and trade references, then a credit analyst must enter the required data into the credit application or case folder.
When you create a credit application, you first specify the credit review type, as well as the customer or prospect's credit classification if it is not defaulted from the customer's profile class. Credit Management identifies the credit checklist that corresponds to this combination, and uses the checklist to build the rest of the application.
This means that the data points on a credit application vary according to its associated credit checklist. See: Using Credit Applications to Collect Credit Data.
For example, a new customer wants to establish credit with your company. Based on the credit checklist that you defined for the combination of credit review type (New Credit) and credit classification (New), the credit application will most likely emphasize external data and trade references, because historical receivables data will not exist for this new customer.
When you submit a credit application, Credit Management compares the application with the associated checklist to confirm that you are not missing any required data points. See: Submitting a Credit Application.
Whenever credit or other personnel submit a credit application, Credit Management always creates a case folder. Credit Management also creates a case folder whenever the Create Credit Request API initiates a credit review.
You use the case folder as a repository for the credit data that you collect. See: Using Case Folders to Collect Credit Data.
Additionally, the case folder is an important tool that you use during the credit analysis and decisioning stages of a credit review. See: Analyzing Credit Data.
Credit Management associates a credit checklist with a case folder in one of two ways:
When Credit Management creates a case folder upon the submission of a credit application, the case folder inherits the credit application's credit checklist.
When a business event, such as a periodic review or a credit hold on an order, initiates a credit review, Credit Management creates a case folder without a credit application. To associate the appropriate credit checklist with the case folder, Credit Management derives the credit review type from the business event itself, and the credit classification from the customer profile or the Default Credit Classification system option.
The checklist that Credit Management associates with the case folder ensures that, for this combination of credit review type and credit classification, all pertinent information is available for the credit analysis.