Credit Hold Feature Within the BMS System, optional settings allow you to implement Credit Hold and Past Due Credit Limit control features. If you do not wish to utilize these features, do not turn these features on in the System Control Maintenance module. If you want to utilize these features, this section will explain how to turn them on and implement them in the system. Please Note: If you turn on these features, all open Jobs will immediately be affected, so please read through this documentation thoroughly to understand how these features will impact the system.
System Maintenance (How To Turn On Credit Hold Features):
Two controls are tied to the Credit Hold program in the Company Control 2 level of the System Control Maintenance module. They are as follows: Credit Control to Disallow W/O and Mail Float Days,
In the User Control 2 Level screen of the System Control Maintenance module, three controls are tied to the Credit Hold program. They are as follows: Allowed to Approve CBD Status Customer, Allowed to Approve Jobs Over Credit Limit, and User: halt/allow processing for all jobs. The first option controls whether a User can approve CBD (Cash Before Delivery) Jobs for processing Work Orders and Invoices. If they can override the Approval status on CBD Jobs, then set this control to “Y” for yes; if they can’t, then set it to “N” for no. The second control determines whether a User can approve a Job for credit over the Credit Limit allowed for the Customer. With this control set to “Y” for yes, the User will be able to change the Credit Status on a Job from “N” to “Y” either from the Job or in the Approve/Select Jobs module accessible from the Accounts Receivable menu. This control prevents them from using or changing the “X” or “A” Credit Hold status. The third option gives Master Credit Override permission to the User if it is set to “Y” for yes. This means that if a User with this permission changes the Credit Hold status on a job to “X” to disable processing, that Job cannot be processed unless that User determines the Job can be processed and then changes the status from an “X” to a “Y” or “A.” An “A” status means a Job can be processed where past-due Invoices exist on a Customer’s account. Only a User with this option set to “Y” for yes can approve Jobs for Customers with past due Invoices.
Sales Processing (How Credit Hold Features Impact Open Jobs):
An Approved field in the Order Entry/Maintenance module to the right of the Customer PO field is tied to the Credit Hold program and displays only if this feature has been turned on. If turned on, the system will not allow a Work Order or Invoice to be processed on a Job where the Customer is over their Credit Limit or has past due Invoices on their account. If one of these conditions exists, a User Control option will allow key employees to override the Approval status, but no other Users will be allowed to approve these Jobs. A User with Credit Override permissions can enter the Approved field and change the status of “N” for no to “Y” for yes, allowing a Work Order or Invoice to be created. If the Approved status is “X,” that means a User with Master Override permissions has determined that the Approved status cannot be changed by anyone else. An “X” status cannot be changed from the Order Entry module. It must be done from the Approve/Select Jobs module in the Accounts Receivable menu. If the Approved field is set to “Y” for yes, but the Customer has past due Invoices, the system will still not allow processing of the Job. When you try to print a Work Order or Invoice, the system will halt the process and prompt the User that Past Due Invoices exist for this Customer. The system will then automatically change the Approved Status to “N” for no, appearing on the Jobs Not Approved Report in the Accounts Receivable Reports Menu 1 of 2. The status on the Customer must then be changed to an “A” for Approved for Past Due Invoices, and it can only be done from the Approve/Select Jobs module by a User with that permission.
Accounts Receivable (How To Manage the Credit Hold Program):
In the Customer Maintenance module, in the Account Balance/Sales Information screen, available by clicking the Account Info button at the top left, the system will display a running total on credit approved Invoices and open Jobs in the Approved Credit Balance field.
In the Customer Status Inquiry module, if an Invoice or a portion of an Invoice has been marked as Disputed through the Lien Date/Dispute feature, the system will not consider that amount as part of a Customer’s Credit Limit or as past due for Credit Hold Approval purposes.
A module titled Approve/Select Jobs can be found in the Accounts Receivable menu and works with the Credit Hold program. If the Credit Hold program has been turned on, you can use the Approve/Select Jobs module to manage Credit Approvals on a job-by-job basis for each Customer. When you enter this module, the screen will appear as follows:
The cursor will be positioned at the Branch field. Hit enter to accept the current Branch or type in a new Branch ID. In the Customer ID field, you type the first letter or two of the ID and hit enter to get a look-up or type in the ID for the Customer you wish to View/Change Jobs for Credit Approval. In the Install Date fields, you can change the dates to view only those Jobs scheduled to be installed during a particular time frame, or you can enter a date range that will allow you to view all Jobs in the system for the Customer. The Credit Limit (CrLmt) field will display the current Credit Limit on the Customer’s account. The Approved Credit Balance (Apprv Cred Bal) field will display the balance for all Jobs currently approved for credit. The Not Approved Balance (Not Apprv Bal) field will display the total of the Jobs that have not been approved for credit. Once you have entered an Install Date range, the system will pull up all applicable Jobs on the screen as follows:
As indicated at the bottom of the screen, if a User has permission to override the Credit Status on a Job, they can hit enter on a line to change the Credit Status, automatically updating the Job accordingly. The (X) Disable means that if an “X” is typed on a line, no one can override the Credit Status to allow processing of the Job unless they have Master Override permission which is granted in the User Control 2 screen. This is the final determination for that Job, and the system will not allow a Work Order or Invoice to be processed for that job. To change the approval from an “X,” a User with that permission must type another “X,” and the status will change back to “N” for Not Approved so that it can then be changed to “Y” or “A.” The (A) Past Due Approval allows a User with that permission to approve Jobs where the Customer has past due Invoices. In this case, a Job may be approved for credit based on the Credit Limit, but if there are past-due Invoices on the account, the system will still not allow the processing of the Job. To approve a Job for processing where a Customer has past due Invoices, the Approval must first be set to “Y” by hitting enter on the line, and then you can type an “A” on the line. If the Approved Status on a job is “Y” because the Customer is under their Credit Limit but they have past due Invoices, the system will catch it when a User tries to print a Work Order or Invoice. The system will then automatically change the Approved Status to “N” for no, so it will show up on the Jobs Not Approved report. The “X” and “A” statuses can only be used from this module. They cannot be used from Order Entry.
The Jobs Not Approved Report report can be found in the A/R Reports Menu 1 of 2 and works in conjunction with the Credit Hold program. All Jobs that are not approved for credit will appear on this report. This report can be customized by the following criteria: Branch, Job Type, Open Date, Install Date, Salesperson, and Customer ID. If a Job appears on this report, the Credit Approval status on that Job can be managed from the Approve/Select Jobs module located in the Accounts Receivable menu. When you enter this module, a Jobs Not Approved screen will appear as follows:
The screen above displays the default settings. If no changes are made, the report will include all Jobs not approved. If you need to customize the report, make those changes in the fields above. When ready, click the Excel icon to export the data or click the Print button for paper output. It will total all sales for each Customer, and at the end of the report, it will total all sales for every Job listed.
Important Note: The Credit Hold program will not register any Invoices added through the Customer Account Maintenance module for determining Credit Hold Status on a Customer’s account. In the case of a bad check where an Invoice has to be re-set up through Customer Account Maintenance, the Credit Manager should review the account and disable any Jobs manually.