This is from V9, but I don’t remember this changing a whole lot from V8 to V9.

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Description of Set Up Basic Data Customer Credit Management

Description of process

The Description of Set Up Basic Data Customer Credit Management process describes BDR (Basic Data Required) for running the Customer Credit Management process. Check or/and add information according to the activities in the set up process before you start enter information.

The Customer Credit Management process is divided into five sub processes. The Customer Credit Information process, Reminders process, Interest Invoicing process, Write-Off Notice process and Follow-up and Analysis, Customer Credit Management. Each process with it´s own  basic data requirements. The BDR´s are separately described for each process work-flow. To be able to run the Customer Credit Management process IFS/Invoice and IFS/Payment must be installed.

Click the action symbols in the set up process to view detailed description on each activity.

Check and add information as described below:

• Check that the company you want to work with is entered as per the instructions in Define System Basics.

• Check the Set up Basic Data Accounts Receivable process. The system creates default data values for a lot of functions when a company is created. These can be left as is or changed manually as required.

• For Customer Credit Information. Enter Message Groups, Credit Analyst and Credit Analyst User. Modify if preferable the Aging Buckets. Enter Notes Status and Invoice Exception Code. Check that Customer Credit Information is entered at Customer.

• For Reminders. Check and/or enter Reminder Template , Reminder Fee and Reminder Layout.

• For Interest Invoicing. Check and/or enter Interest Invoicing Posting Control. Check and/or add Interest Template.

• For Write-Off Notice Information. Enter Write-Off Notice Template. Enter if preferable write-Off Codes and Write-Off Code Limit.

• For Difference Notice Information. Enter Difference Notice Template. Enter if preferable Difference Codes and Difference Code Limit.

• The Follow-up and Analysis, Customer Credit Management process does not require any entry. The process is only used for query functions and reports.

Information concerning the contents of the Customer Credit Management process itself is found in each sub process. Click the notes symbol Description of Customer Credit Information to view the text for that specific sub process. The same notes symbol applies for all sub processes.The BDR (Basic Data Required) is also stated as a reminder when you click the requirement symbol.

There is also a small logic diagram on this subject in the help:

You may find after the setup however, that the hard credit limit on the customer is too rigid if you only want to require a credit review prior to allowing an order to progress.  We found that for the majority of our situations, a custom field on the Customer Order Header that is a Financial Hold check box allows a lot more flexibility for flagging orders to be held but not requiring a significant overhead to maintain the customer account setup.