DBSi 5.0 Finance Delta Training Credit Management

Agenda Retired Functionality –IAS screens Changes to Existing Functionality –DBSi 5.0 Finance Options –New Credit Terminology –Credit Set up –Display Customer Information – DBSi –Payment Terms –Credit Check Process –Display Blocked Orders –Customer Account Balance –Forms New Functionality –Credit Level Parameters –Approver Level Parameters –Credit Categories 2

3 Credit Management Retired Functionality

2.3.4 IAS Screens 4 IAS screens are being removed Credit Management will be done in DBSi

5 Credit Management Changes to Existing Functionality

DBSi 5.0 Finance Options Dealer Options –CODA V11 and above –3 rd Party Finance package of choice 6

New Credit terminology: Credit Area – A credit area is an organizational entity that defines and monitors credit limit data for customers. –Four are delivered to each dealership – 0001, 0002, 0003, 0004 Credit category – Credit categories are characteristics used to determine credit worthiness of a customer, in addition to exposure against a credit limit. Parent/child relationship – A financial Parent assumes the financial responsibility of a child customer. If a child places an order, the child customer will receive the invoice, but the parent will be the receivable customer in CODA. Credit Level Parameters – Levels set up by the dealership to restrict credit approvers by document amount and aging bucket Approval Level Parameters – the assignment of a credit level and indication if this approver is a credit manager Credit manager – a person is set up as a credit approver and a credit manager in function MNTFNCRAL (Approver Level Parameters). This was formerly known as Collection Code. This value is sent to CODA and can be used for reporting. Credit approver – one who is set up to authorize blocked orders Blocked Order – an order in a held status when the customer has failed credit check 7

Credit Set up Changes Credit Check Parameters (option 07) from D1 menu: 8 This function has moved to the FNMENU, function MNTFNCRDP

Credit Set up Changes Credit Check Parameters (option 07): 9 Each document source had a field to indicate if the document was allowed to be deleted.

Credit Set up Changes Trading limit is no longer available, so the option to use credit limit or trading limit has been removed. Include: (document sources) has also been removed. All document sources will be included in credit check Maintain Credit Check Parameters details:

Credit Set up Changes 5.0 Credit Check Parameters (MNTFNCRDP): 11 On the FNMENU, you will select function MNTFNCRDP Formerly option 07, Credit Check Parameters

Credit Set up Changes 5.0 Credit Check Parameters: 12 Fields that have been added: Company code – useful when using multiple companies Credit area – the credit area that corresponds to the document source Credit check open/close – when credit check should be initiated Default payment term – enables each credit area to have a default payment term

Payment Terms Default payment terms can be set by line of business Maintain Credit Check Parameters (MNTFNCRDP):

Payment Terms Valid payment terms are set up on MRMENU, function MNTSCTAB as in previous releases. Payment terms can be set up by line of business. They can be assigned and maintained in function MNTFNCRDP. Payment terms codes will be 4 characters instead of 2 to match the CODA naming convention. Customers that will be exceptions to the default payment terms by line of business, may be set up with their own payment terms by line of business in function MNTCICUS. 14

Payment Terms Maintain Customer (MNTCICUS): Payment terms may be set up for exception customers by line of business in MNTCICUS

Payment Terms naming convention: 16

Payment Term Process: 17 The payment program process is as follows: Check to see if a due date is entered on the document. If so use that as the baseline date and enter payment terms of due immediately so that the due date will be calculated as due immediately. If a due date is not entered on the document, the program will check to see if the customer has payment terms. If so, these payment terms will be used to calculate a due date (MNTCICUS). If there are no payment terms on the customer master the default payment terms will be used to calculate a due date (MNTFNCRDP).

Display Customer Information changes: Customer Name & Address: 18 The Customer Name & Address function (MNTCINAA) has been removed and combined with the Customer Information screen (MNTCICUS) on the CIMENU.

Display Customer Information changes: 5.0 Customer financial information is now located in function MNTCICUS, page 2 and Credit Manager is entered on page 2 Credit manager is set up in function Approver Level Parameters (MNTFNCRAL) with a “Y” in the Credit Manager column

Display Customer Information changes: Credit Manager –Credit manager must be set up as an approver in Approver Level Parameters (MNTFNCRAL) –The Credit manager must also be flagged as a Credit Manager in the Approver Level Parameters: –The credit manager field is sent to CODA, so must also have a valid CODA logon –Within CODA, it can be used for reporting purposes –This replaces the Collection code 20

Display Customer Information changes: 21 Financial Parent is located on page 2 of the MNTCICUS function. Do not confuse this with Parent Cust No. (marketing customer number) on page 1. Credit Manager is sent to CODA on the customer record for informational/reporting purposes

Display Customer Information changes: Finance Parent: –A new Finance Parent field has been added to the Customer Maintenance screen (MNTCICUS) page 2, in DBSi. –When the Finance Parent field is populated and an order is placed for a child customer, the child customer will receive the invoice, but the parent will be the receivable customer in CODA. –Dealers will have the option of passing the child customer number as an info code to CODA either in an element or external reference ( New info code CHLD). 22

Display Customer Information changes: Finance Parent: –Financial Parent can now support 2000 child customers. –A new CHLD (child customer number) info code has been created and can be used to send the child customer number to CODA 23

Display Customer Information changes: 24 Customer currency is displayed Each credit area and the associated credit limit and credit category are shown

Display Customer Information changes: 5.0 Maintain Customer Account (MNTCICUS), page 3: 25 The only credit limit passed to CODA is the Total Credit.

Display Customer Information changes: Credit Limits: –A credit limit is set up for a customer for each credit area. In addition a total credit limit will be stored in CODA V11 for informational purposes –If a dealer does not wish to set up credit limits by line of business (LOB) for each of its customers, only one credit area can be set up. In this case, the customer will have only one total credit limit. –Credit limits may be set up for parent/child relationships. In this situation, the credit parameters are set up at the parent level only. 26

Customer Account Balance changes: Cust Account Balance (option 08): Cust Account Balance (option 08) on the D1 menu has been moved to the 5.0 FNMENU.

Customer Account Balance changes: Cust Account Balances (option 08): 28 This function defined where to access the customer balance records in IAS for credit check by document source

Customer Account Balance changes: 5.0 Customer Account Balance (MNTFNACBL): 29 This function defined where to access the customer balance records in CODA for credit check by document source

Customer Account Balance 5.0 Maintain Account Balances (MNTFNACBL): 30 For 5.0, the screen is different, but the functionality is the same This function associates a credit area with a ledger in CODA. The ledgers and corresponding selectors must be set up in CODA. Credit area TOTL and ledger ZZCRCKTOTL are set up for internal credit check purposes

Display Credit Changes: Display Credit Status (CRDTSTS) or Display Credit Approval (DSPCRDT) from FNMENU: 31

Display Credit Changes: Display Credit Status (CRDTSTS): 32 Last Yr Turnover is now called Previous Turnover Trading Limit has been removed High Balance Date has also been removed

Display Credit Changes: Display Credit (DSPCRDT): 33 Open/Close columns have been combined into one column for 5.0 called Blkd Sts (Blocked Status).

Display Credit Changes: A new field, Fin Parent displays the parent of a parent/child relationship as shown here An initial column has been added for the approvers initials Credit area to which the document is associated is displayed The customer number associated to each document is displayed. This is especially useful when a parent has several children Credit Approval (DSPCRDT):

Display Credit Changes: 5.0 Display Credit Status (CRDTSTS) or Display Credit (DSPCRDT): 35 For multi-currency companies, a new function is available, F22=Convert Currency This function will display the values in both home or customer currency, home being the default. Here “Home” currency CAD is displayed. Credit check is done in the customer’s currency.

Display Credit 5.0 Display Credit Status (CRDTSTS) or Display Credit (DSPCRDT): 36 One F22 = Convert Currency has been pressed, the screen looks identical to the first, only the currency displayed is USD and the values have been converted to USD.

Display Credit 5.0 Display Credit Status (CRDTSTS) or Display Credit (DSPCRDT): 37 Another new function F11 = Fold/Unfold has been added to display more detail about each document awaiting approval

Display Credit 5.0 Display Credit : 38 A detailed explanation of each field is on the next slide

Display Credit 5.0 Display Credit, F11 Unfold : 39 Approval amount – Maximum amount that you, the approver can approve Aging Bucket Limit – The maximum aging bucket that you, the approver can approve Exc Exposure – Anything owed by the customer that is over their credit limit for the credit area this document belongs to Currency – the document currency Oldest Aging Bucket – The oldest aging bucket for this customer with a positive balance Store – customer store Salesman – customer salesperson

Display Credit 5.0 Display Credit, F11 Unfold : 40 Comments – any comments that have been entered regarding this customer Fin Parent – if this customer is a child, the financial parent customer number is displayed Credit Msg – this is the message that was displayed to the user when credit check was initiated for this document. It indicates the reason for the credit failure.

Display Credit 5.0 Display Credit Status (CRDTSTS) or Display Credit (DSPCRDT): 41 Another new function has been added to these screens, F14 = Exposure by Credit Area.

Display Credit 5.0 Display Credit Status (CRDTSTS) or Display Credit (DSPCRDT), Exposure by credit area: 42 Each credit area is shown with it’s corresponding total exposure and credit limit. F11 Fold/Unfold will further breakdown the information

Display Credit 5.0 Display Credit Status (CRDTSTS) or Display Credit (DSPCRDT), Exposure by credit area: 43 For each credit area, Open Orders and Open A/R are displayed F14 = Summary Screen will take you back to the main Credit Approval screen

Display Customer Information changes: Credit exposure calculation: –Available credit = credit limit – open receivables (CODA V11) – open orders (DBSi) and invoices not posted (DBSi). –When calculated for a parent/child relationship, the exposure of the parent and all children are combined and compared against the credit limit set up at the parent level. –For multi-currency dealers, exposure will be shown if both the company and customer currency on the DSPCRDT screen. 44

Forms Customer statements: –Although CODA V11 does not offer a customer statement, we are offering a custom solution. –Current CODA V11 customers use Cognos, Crystal Reports, etc to generate customer statements. –It is possible for a customer to view their accounts and possibly a statement online. However, we would need to determine the security needed to offer this option. 45

Forms – Customer Statements 46 Log into CODA:

Forms – Customer Statements 47 Log into CODA:

Forms – Customer Statements 48 Log into CODA: Choose an output configuration.

Forms – Customer Statements - iSeries 49 Log onto DBSi From a command line enter: –WRKOUTQ QPRINT –Find the spool file named: FNJSTATMNT

Forms – Customer Statements - iSeries 50

Forms – Customer Statements – Windows Spool 51 This option generates a text file:

Forms – Customer Statements – PDF Document 52 This option generates a PDF file:

Forms – Customer Statements – PDF Document 53 This option generates a PDF file:

Forms Dunning letters: –CODA V11 does have reminder notices, but this is not a DBSi 5.0 delivered function. 54

55 Credit Management New Functionality

Credit Process Manages credit check parameters within Credit areas –Example: 0001, 0002, 0003 and 0004 Utilizes both credit limit and credit category parameters to evaluate credit risk: –Credit Exposure –Maximum dollar value –Percentage past due –Oldest open item Offers Parent/Child functionality Offers credit approval levels Now handles positive balances 56

DBSi 5.0 Credit Areas A credit area is an organizational entity that defines and monitors credit limit data for customers. Below are three examples of credit area set up options: Example 1: 57 Parts CA 0001 Service CA 0002 Rental CA 0003 Sales CA 0004 Or Example 2: Parts, Service, Rental CA 0001 Sales CA 0002 Or Example 3: Parts, Service, Rental, Sales CA 0001

Credit Set up - NEW Credit Level Parameters (MNTFNCRLP) Approver Level Parameters (MNTFNCRAL) Credit Categories (MNTFNCRCT) has added three more set up options:

Credit Set Up - NEW Approval levels are set up to limit credit approver authority: –Approval amount limits –Aging bucket limits 59 Credit Level Parameters:

Credit Set Up - NEW Approver Level Parameters (MNTFNCRAL): 60 If an individual has authority to approve credit at all stores, enter “**” in the store field, otherwise, enter the appropriate store number for which they will be able to approve credit Assign an appropriate approver level Indicate if the approver is to be a credit manager –Valid entries are “Y” or “N” –Credit approvers do not have to be credit managers

Credit Set Up - NEW To review, Credit Manager: –Credit manager is a new field on the Customer Information screen (MNTCICUS) –Credit manager is passed to CODA for informational purposes only –Credit manager must be set up as a user in CODA –When credit manager is entered in MNTCICUS, it is validated against the FNPCRAL0 file, therefore all credit managers must be set up as such on the Approver Level Parameters screen (MNTFNCRAL on FNMENU). 61

Credit Set Up - NEW This function is used to set up credit categories Each dealer will set up their own categories and parameters 62 Credit Categories (MNTFNCRCT):

Credit Set Up - NEW Each category is assigned a three character alphanumeric name, a description and a currency There are four options listed as to what is checked when credit check is initiated. 63 Credit Categories (MNTFNCRCT) parameters:

Credit Categories No credit check –No credit check is done Maximum document value –Enter the maximum document value that will be allowed for this category Open Items –Enter the maximum percentage of open items past due to total exposure that will be allowed –Enter the minimum aging bucket with a positive balance that will be allowed Oldest open item –Enter the minimum aging bucket with a positive balance that will be allowed 64

Credit Categories When No Credit Check is selected, no other option can be selected Of the remaining three options, one or a combination of any of the three can be selected. No option is required When credit check is performed: –It checks each of the options selected and the corresponding parameters in the order that they are listed –It then checks credit limit –If no option is selected, it will check the credit limit only 65

Credit Categories 66 Maintain Customer (MNTCICUS): Credit categories are assigned to customers in MNTCICUS on the financial information screen.

Credit Categories - NEW No credit check: –When “No credit check” is selected, no credit check is performed for the associated credit area 67

Credit Categories - NEW Document value – credit check checks the document value against the max doc value indicated. –If the document is less than or equal to the max doc value, the customer will pass this portion of credit check. –If the document is greater than the max doc value, the customer will fail credit check Example 1: A customer is purchasing a part in the amount of $2,500. The customer is set up with a credit category to check the maximum document value. The maximum dollar value is set to $5,000. The document is less than the maximum document value so the customer will pass this credit check Example 2: The same customer above wants to purchase a part in the amount of $7,500. The customer will fail this portion of credit check 68

Credit Categories - NEW Open Items – credit check checks the aging buckets for a positive balance, beginning with the newest bucket. It then checks the parameter to see if the bucket is greater than the minimum aging bucket set up as the parameter –If a customer has a positive balance in an aging bucket equal to or newer than the one indicated in the parameters, the customer will pass credit check –If the customer has a positive balance in an aging bucket older than the one indicated in the parameters, credit check will calculate the indicated percentage (Max past due %) of past due to total exposure and compare that to the past due amount. If the percentage is greater than the percentage indicated, the customer will fail this portion of credit check If the percentage is equal to or less than the percentage indicated, the customer will pass this portion of credit check. 69

Credit Categories - NEW Examples of Open Items credit check: Example 1: A customer would like to purchase parts in the amount of $2,000. The customer has a positive balance in aging bucket TWO. The parameters for the credit category assigned to him is set up to check the minimum aging bucket of THREE. This customer will pass this portion of credit check. Aging buckets shown if Display Credit (function DSPCRDT): Parameter in Credit Categories : 70

Credit Categories - NEW Examples of Open Items credit check: Example 2: If the same customer in example 1 has a positive balance in aging bucket THREE, credit check will compute the percentage of past due ( ) to the customers total exposure (216.59). The percentage calculates out to be 87%. The Max past due % parameter for Open Items is set to 20%. This customer will fail this portion of credit check. Total Exposure and Aging buckets as shown in Display Credit (DSPCRDT): Parameter in Credit Categories : 71

Credit Categories - NEW Oldest Open Items – credit check checks the aging buckets for a positive balance, beginning with the newest bucket. It then checks the parameter to see if the bucket is greater than the minimum aging bucket set up as the parameter –If a customer has a positive balance in an aging bucket older than the one indicated in the parameters, the customer will fail credit check –If a customer has a positive balance in an aging bucket newer than the one indicated in the parameters, the customer will pass credit. 72

Credit Categories - NEW Examples of Oldest Open Items credit check: Example 1: If a customer has a positive balance in aging bucket CURRENT, the customer will pass credit check. Total Exposure and Aging buckets as shown in Display Credit (DSPCRDT): Example 2: If a customer has a positive balance in aging bucket TWO or older, the customer will fail credit check. Total Exposure and Aging buckets as shown in Display Credit (DSPCRDT): 73

Credit Categories - NEW Examples of Credit Limit credit check: Example 1: If a customer purchases a part (included in credit area 0001)for $1,500 and has a credit limit of $5,000 for credit area 0001, the customer will pass credit check. Credit limit for customer for credit area 0001 as seen in MNTCICUS, screen 2: 74

Credit Categories - NEW Examples of Credit Limit credit check: Example 2: If the same customer purchases a part (included in credit area 0001) for $6,500 and has a credit limit of $5,000 for credit area 0001, the customer will fail credit check. Credit limit for customer for credit area 0001 as seen in MNTCICUS, screen 2: 75

Credit Check Process - NEW The credit check process: 1.Determines what credit area the document belongs to Credit Check Parms (MNTFNCRDP) 76

Credit Check Process - NEW The credit check process: 2.It will then make the checks selected for that credit category in Credit Categories (MNTFNCRCT): It will perform the checks in the order that they are listed on the screen If no parameters are selected within the credit category, it moves on to step 3. 77

Credit Check Process - NEW The credit check process: 3.It will then check the credit limit for the credit area assigned to the customer 4.If no parameters are selected for the corresponding credit category, only the credit limit will be checked. 78

Display Credit - New Orders Needing Approval (DSPFNBLOR): 79 New to 5.0 is the Orders Needing Approval function (DSPFNBLOR)

Display Credit - New 80 The screen lists, by customer number, all orders that need approval A Filter Customer field has been added so that the user can list just one customer if they like Orders Needing Approval (DSPFNBLOR):

Display Credit - New 81 To the right is a selection field (indicated with “S” ) to select a specific order to view or approve The column heading “A” indicates authority If an “X” is displayed, you have the authority to approve the order Orders Needing Approval (DSPFNBLOR):

Display Credit - New 82 This is an example of the same screen for a user who does not have the authority to approve the orders that are displayed. The selection and approval column are blank The column heading, “Apr Lvl” displays the approver level required to be able to approve the order Orders Needing Approval (DSPFNBLOR):

Display Credit - New 83 In this display, Lvl 99 is required to approve the order This authority is set up in Credit Approver Parameters (MNTFNCRAL) On the inset below, Approver CONAWSK would not be able to approve the orders above, but ASHDN could. Orders Needing Approval (DSPFNBLOR):

Where to Get More Information ADMS Website ( DBSi 5.0 Significant Changes Technical  DBSi 5.0 Self Study Finance  DBSi 5.0 Application Service Packs Technical  5.0 Application Service Packs CODA Help from CODA main menu 84

85 Questions?