At the conclusion of a credit review, either Oracle Credit Management or a credit analyst makes a recommendation in response to the original credit request:
If a credit review is using a scoring model with assigned automation rules, then Credit Management looks at the calculated credit score to automatically select the appropriate credit recommendations, all without the assistance of credit personnel.
Note: If recommendations are not inserted in the case folder, it could be that values were not provided for all required data points from the used checklist. In this case, you need to manually enter the recommendation.
If all scoring data point values were provided, a credit score is still calculated.
If a credit analyst is managing the credit review, then the analyst records recommendations in the case folder, based on the credit analysis and resulting credit score, and submits the case folder.
Suggestion: The credit analyst can select only those credit recommendations that are relevant to the type of credit application under review. For example, during a credit application, only trade credit recommendations will display for selection; during a lease application, only term credit recommendations will display.
Generally, a recommendation is specific to the type of review that was just concluded. For example, a credit review that an order hold originally initiated would most likely result in a recommendation to:
Increase the credit limit to accommodate the amount of the order and remove the order from hold.
or
Deny the request for an increase in the credit limit and leave the order on hold.
Other recommendations might also put the customer on credit hold so that no new orders could be processed. In such a case, Credit Management works with Oracle Receivables to place all pending orders on hold, as well.
Credit Management confirms that multiple recommendations are complementary. For example, you would not recommend to place the account on credit hold and increase the applicant's overall credit limit at the same time.
After the case folder is submitted, the Credit Management workflow determines whether the recommendations must be routed through an approval hierarchy. For example, if automation rules on the scoring model have the Skip Approval check box selected, then no approval is required. However, if no automation rules exist on the scoring model, or if the Skip Approval check box is not selected, then the Credit Management workflow calls the Approvals engine to route the recommendation through the approval hierarchy. See: Setting Up Credit Decision Approval Policies.
Each person in the approval hierarchy receives a notification that they must approve or reject the recommendations. Upon final approval, the credit analyst receives notification that the credit recommendations have been approved. See: Credit Management Application Workflow.
Upon approval, the Credit Management workflow evaluates the recommendations and performs one of two actions:
Implements the recommendation
For example, increase create limit by 10% and change the customer credit classification to Moderate Risk.
Creates a workflow business event that tells other E-Business Suite applications that the recommendation was approved. This method is generally used if the original credit review request came from another application, such as Oracle Lease Management. By subscribing to this business event, Lease Management can then act upon the recommendation.
For example, let's say that a term credit review is approved in Credit Management. Upon approval, a business event for the recommendation, Approve Term Credit, is raised. Lease Management subscribes to this business event and can act upon it by approving the lease application.
Does Credit Management support conditional approvals?
Yes. See: Approving a Credit Review with Conditions.
Let's say that an incomplete credit application causes a credit review to be routed to a credit analyst for manual processing. After the credit analyst fixes the issue, can the analyst re-submit the credit application or case folder for continued automation? Or, does the analyst need to manually complete the credit review, including the manual selection of the final credit recommendation?
In this case, after the analyst re-submits the credit application or case folder, Credit Management will evaluate whether automation rules exist on the scoring model in use. If automation rules exist, then the credit recommendations are automatically derived. In this way, Credit Management allows continued automation to improve your credit department's processing efficiency.
If the analyst already manually documented credit recommendations, then the manual recommendations supersede the automation rules.