Use Customer Profiles to group customer accounts with similar creditworthiness, business volume, payment cycles, and late charge policies. For each profile class you can define information such as credit limits, payment terms, statement cycles, invoicing, and discount information. You can also define amount limits for your late charges and statements for each currency in which you do business.

Define your standard customer profiles in the Customer Profile Classes window. These profiles contain generic options that you can use to group your customers into broad categories.

For example, you might define three categories: one for prompt paying customers; one for late paying customers with high late charge rates; and a third for customers who mostly pay on time, with discount incentives for early payment. You can also use the profile class 'DEFAULT,' which Oracle Receivables provides.

You can assign a profile class to customer accounts and sites on the Create Customer page or the Account Profile subtab of the Account Overview page. The customer profile class you assign provides the default values, which you can optionally customize to meet specific requirements for each account or site.

Profile class options set at the account or site level take precedence over those defined at the customer profile class level.

For statement site, dunning site, and late charges site profile amounts, Receivables uses the profile amounts defined at the site level only if the site is assigned a dunning, statement, or late charge business purpose and you set the AR: Use Statement, Dunning, and Late Charges Site Profiles profile option to Yes. Otherwise, Receivables uses the profile amounts defined on the billing site.

Prerequisites

• Define customer profile lookups

• Define statement cycles

• Define collectors

• Define credit analysts

• Define payment terms

• Define AutoCash rule sets

• Define System Options

• Define grouping rules

• Define currencies

• Optionally define interest tiers and charge schedules, if you are using charge schedules when calculating late charges.

  See: Define Interest Tiers and Charge Schedules.

To define a new customer profile class:

1. Navigate to the Customer Profile Classes window.

2. Enter a Name and a brief description of this profile class.

3. Check the Active check box to make this profile class active.

   Attention: Active profile classes appear in the Profile Class list on the Create Customer page or the Account Profile subtab of the Account Overview page.

4. Enter other profile class information.

   See: Customer Profile Class and Customer Account Profiles Field Reference.

5. Use the Late Charge Profile tab to enter default information for late charge calculations.

   See: Setting Up Late Charges.

6. Open the Profile Class Amounts tabbed region, then enter the Currency in which customers assigned to this profile class will do business. For each currency that you enter, define the currency rates and limits for customers using this profile class, including Credit Limit and exchange rate information.

   You also use this tab to continue defining your late charge policy. See: Setting Up Late Charges.

   Attention: If you do not assign an interest rate to a currency, Receivables does not calculate late charges for past due items in that currency. See: Currencies Without Rates.

   Note: If Credit Management is installed, then Credit Management matches the currencies assigned in the profile class with the credit usage rules in Order Management to identify the transactions to include in a credit review.