Credit check rules are designed to check open balances for a customer before you can commit and transact another transaction with that particular customer. This enables your enterprise to avoid extending too much credit to a single customer and incurring a serious risk management problem.
Note
Credit checking for transactions only occurs on order transactions in Oracle Order Management and not for invoices in Oracle Receivables.
Credit rules are defined in Oracle Order Management and are assigned to order types and the credit rules are checked at various times during the processing of an order. These are assigned by you as per the business rules at your organization.
In the form shown in the previous screenshot, where a transaction type is defined you specify when the credit rule will be invoked. Accordingly the rule will be applied at each stage and check credit validity of the customer—taking into account his open balance. The tasks where credit check rules can be applied...