Page Comparison

20228 Customer credit verification rules have changed and credit restrictions can now be applied if overdue documents are present

Module:

Sales and Distribution – Setup – Customer – Sales(tab)
Sales and Distribution – Outright – Sales Invoice
Sales and Distribution – Delivery – Delivery Challan [Against Order]
Sales and Distribution – Delivery – Delivery Challan [Adhoc]
Procurement – Setup – Supplier – Sales(tab)
Finance – Voucher – AP Voucher
Finance – Voucher – AP Workbench

Enhancement Summary:

Earlier the credit verification of a customer was only based on credit limit but there was no concept of restricting further credit if there was any overdue document of the customer. Now there will be a credit limit as well as some overdue document validations which are customer wise configurable. Moreover, some tolerance option for credit limit is now available for flexibility.

The new fields are –

1. Credit Rule - User will now be able to selected select the rule, which needs to be applied.
    
2. Tolerance Percentage - Previously, there was an option only to provide the credit limit. Due to which operations, would stop even when the value crossed marginally. By providing tolerance percentage, user will now be able to create a buffer value to the provided credit limit. For example, Credit limit is defined as 5 lakhs, and tolerance is 10%. The applicable credit limit will now become 5 lakhs and 50 thousand.  
    
3. Max Overdue Days - Number of days beyond which if payment of any document is due for a customer, further delivery/sale process to be restricted for the customer. For example, Max overdue days is specified as 10 days and current date is 20th October. If there is any sales invoice which became due for payment before 10th of October, then user will be restricted to create any further delivery or sale document. 
    
4. Overdue Amount - Buffer amount to be allowed even beyond overdue days. Suppose overdue days is specified as 2 days and overdue amount is 10000. If there are only two documents of Rs. 4000 each, which became due 3 days back. Even then DC or Invoice creation would not be barred. But if the overdue amount went beyond, like if there would have been 3 documents of Rs. 4000 each which became due 3 days back, then DC creation and Invoice creation would be barred for that customer.

   Note: In aforesaid example, profile setting for credit verification is considered to be set as ‘Stop’.

The rights to add and modify these details will now be controlled by the “Credit Verification Failure Alert Method” user profile setting.

In case of violation of any of the validations proper messages will be displayed and further DC / Invoice / AP Voucher creations will be allowed with warning or completely stopped based on the user’s profile setting.

Please note the following important points:

1. For Credit Rule - Credit Limit Only
   
   The Credit limit amount and the Tolerance percentage will be checked for validation. In case of AP vouchers, only this Credit Rule is applicable. When this rule is applied Credit Limit field will become a mandatory field, but tolerance will remain as non-mandatory field. Only the Credit limit amount and the Tolerance percentage will be checked for validation. In case of AP vouchers, only this Credit Rule is applicable.

   Note: Even if overdue days or overdue amount is specified, same will not be considered for validation purpose.

2. For Credit Rule - Overdue
   

   When this rule is applied Overdue days field will become a mandatory field, but Overdue amount will remain as non-mandatory field. Max Overdue days and Overdue amount will be checked for validation.
   
   Note: Even if Credit limit or tolerance is specified, same will not be considered for validation purpose.

3. For Credit Rule - Credit Limit and Overdue
   
   Both of the above-mentioned rules will be applied for validation purpose. The Credit limit amount, the Tolerance percentage, Max Overdue days and Overdue amount will be checked for validation. However, in this particular credit rule, violation of any of the validations (Credit Limit or Max Overdue days) will cause further related actions to be continued with warning or be suspended.

4. For Credit Rule – None

No validations will be applied, when none is selected as the rule.

In case of violation of any of the validations proper messages will be displayed and further DC / Invoice / AP Voucher creations will be allowed with warning or completely stopped based on the user’s profile setting. The user profile setting to be checked: “Credit Verification Failure Alert Method”.

Note:

• The fields can be imported through excel in the relevant forms.

• The reflection of the information captured in Sales and Distribution > Setup > Customer > Sales(tab) will be reflected in all forms which display credit information of customers.

• Credit information of suppliers will also be reflected in the same manner in appropriate forms.

Assumptions:

1. No impact for Auto Delivery Challan: Currently, auto delivery challan is done without checking the credit limit/overdue days. The same shall be applicable now as well. Henceforth after this development, the user shall get restricted in Sales Invoice.
   
   
2. If user takes the system date to backdate while saving any document, the "Overdue" check might misfire, i.e., may not get validated.
   
   
3. All overdue documents will be taken into account irrespective of being Posted or not.
   
   
4. No check/validation has been provided in transfer out. The validation will be applicable in Delivery Challan itself for Consignment customers.
   
   
5. No credit validation applicable for own stores/branches (MS-OO-CM, OS-OO-CM).
   
   
6. Overdue check to be applicable for Sales Invoice documents only.
   
   

7. No overdue check to be applicable in "AP Voucher". Only Limit check will be applicable there.

Migration Logic: If credit limit had already been assigned to any customer / supplier before update; the credit rule for those customer / supplier will be automatically set to Credit Limit on updating the software. Otherwise the credit rule will be assigned the None value after update.

Scenario:

N.A.

21441 Mark Down option has been provided for price calculations of "on the fly" item creation

Module:

Procurement - GRC - Item Details - Definition

Procurement - Order Management – Purchase Order - Item Details - Definition

Inventory - Setup - Opening Stock - Add/Edit Item - Definition

Inventory - Conversion - Bundle - Create Item

Inventory - Conversion - Production - Create Item

Previously the RSP and WSP prices for “On The Fly” Item creation in GINESYS ERP was calculated from its Rate or Standard Rate through the Mark Up approach and both positive and negative value was accepted as Margin %.

Now a Mark Down approach for price calculation is being implemented for the same functionality (on the fly item creation). So a different input parameter for price calculation is being provided.

The user is being provided an option to select either the Mark Up or the Mark Down approaches before getting into the price calculation process in the Price Population window within Item Details.

Mark Down calculation formula:
Rate(After Discount) / (1 - (Margin%/100))

Scenario:

Rate: 5000

Discount%: 10

RSP Margin%: 20

Round Off: 0

RSP will be calculated as follows:

Discounted rate = [5000-(5000*10%)] = 4500

RSP = 4500 / [1-(20/100) = 5625