In Oracle Credit Management, you document your enterprise's credit policies via user-defined credit checklists. Using various checklists, you manage the credit analysis process by defining the required and optional data points that are included in the credit review.
Defining a checklist is a multi-step process, during which you can select checklist criteria in the form of data points from a multitude of sources. Credit Management uses these checklists in two places:
Credit application - The checklist determines which fields are required on the application.
Credit analysis - The checklist identifies what data should be automatically collected and displayed in the case folder.
When defining a checklist, you select a credit review type and credit classification combination. During a credit review, Credit Management uses the intersection of the credit review type and the applicant's credit classification to select the appropriate checklist to use for the credit analysis. The higher the customer credit classification risk, the more stringent the credit policy (scoring model).
For example, your enterprise defines these credit review types:
Credit checking
Credit review
Periodic credit review
Credit application
Lease application
Additionally, your enterprise defines these credit classifications:
High Risk
Moderate Risk
Low Risk
For each combination of credit review type and credit classification, define a checklist based on your credit policies. For example, during a lease application credit review for a High Risk customer, the assigned checklist might require additional collateral and bank reference data points on which to base a credit decision.
Note: For any combination of credit review type and credit classification, only one checklist is active at a time.
This table lists the pages from which you select data points that you want to include in the checklist.
| Checklist Definition Page | Data Point Description | Data Point Source |
|---|---|---|
| Select Credit Data Points | Indicates which credit-related data from Receivables and user-entered business information to include in the credit analysis | Receivables and user-entered |
| Select References Data Points | Indicates the number of bank references and trade references to enter in the credit analysis, as well as guarantors, venture capital, and collateral | User-entered |
| Select Payments Data Points | Indicates which historical order and receivables data to include in the credit analysis | Order Management and Receivables |
| Select Aging Data Points | Indicates which aging data to include in the credit analysis | Receivables |
| Select Dun & Bradstreet Data Points | Indicates which data points from the specific Dun & Bradstreet Global Access Data Products report to include in the credit analysis | Dun & Bradstreet |
| Define Additional Items | Indicates if the credit analysis requires additional information from an outside source | User-entered |
Prerequisites
You must first define your enterprise's credit classifications as well as credit review types. See: Defining Lookups.
On the Define Checklist page, enter a name and description for this checklist.
Select the credit classification that you want to associate with this checklist.
Select the credit review type that you want to associate with this credit classification and checklist.
In the Notes field, optionally enter comments about this checklist.
The Start Date field defaults to the current date, but you can change it to a future date.
If your credit policies change, then you can end date a checklist for a combination and create a new checklist.
After you designate an end date for a checklist, you cannot change or remove it.
Note: If you enter a future end date, then you can associate a second checklist with this same combination of credit classification and credit review type, provided that the second checklist's start date is after this checklist's end date.
Optionally assign a scoring model to this checklist.
Whenever Credit Management uses this checklist for a credit analysis, the scoring model that you assign here will be the default.
Note: During a credit analysis, you can generate various what-if scenarios by changing the scoring model that is attached to the checklist. See: Calculating a Credit Score.
Attention: Before assigning a scoring model, ensure that the scoring model's selected data points are also included by this checklist.
Use the Credit Policy Statement field to optionally enter a description of the credit policy that this checklist enforces.
The following group of pages display various data points that you can select for inclusion in this checklist.
Select the data points that you want this checklist to include.
If you do not select either check box, then the checklist will not include the data point at all.
Data points that are user-entered or from an external source can be designated as required or optional. See: Defining Additional Data Points.
For additional information about selecting data points from Dun & Bradstreet, see Adding Dun & Bradstreet Credit Data to a Checklist.
On each page, you can view the checklist criteria that you have saved up to that point.
Click Submit to freeze the checklist.
Once you have submitted the checklist, you cannot modify it. If modifications are necessary, then you must end date the checklist and create a new checklist.