Periodic credit management tasks

This article describes the periodic tasks that are part of the process of managing credit limits for customers.

Update risk scores

As businesses evolve and circumstances change, the credit risks for a given customer can also change. To help maintain appropriate credit limits for your customers, you must periodically review the criteria for each risk score and update the scores for each customer. You can update the following scores by using the Update risk scores page (Credit and collections > Periodic tasks > Credit management > Update risk scores). All user-defined calculations are also processed.

  • Average payment days – This score is the average number of days that a customer takes to pay invoices.
  • Customer since – This score is the number of years that a customer has been a customer of your organization.
  • In business since – This score is the number of years that a customer has been in business. It uses the value of the Business start field on the Customers page.
  • Days sales outstanding – This score is based on the accounts receivable balance, sales revenue, and number of days for the previous 12-month period.
  • Average balance – This score is based on the accounts receivable balance for the previous 12-month period.
  • Credit management group, Account status, and Country – These scores use information from the customer.

Update customer balance statistics

You can run the Update customer balance statistics process to update the calculation of balance statistics that is shown on the Balance statistics inquiry page. This information is used to calculate risk scores and the values that are shown in the credit statistics FactBoxes on the Customer page.

When you run the process, it updates customer balance statistics for a single customer. To set up a batch job to run the process for multiple customers, you can use the Calculate balance statistics page (Credit management > Periodic tasks > Calculate balance statistics).