Credit Implications of MOs
MOs are a type of sales order and follow most of the rules of sales orders. If the customer bill-to on an MO with a call is on credit hold or over their credit limit, MO processing is determined by the settings of Credit Hold Option and Use Action Status in SO Accounting Control in SSM Accounting Control. This field can have one of three values:
0 (zero): You can create MOs regardless of the customer’s credit status.
1: You can create MOs, but a warning displays and the action status of the MO is set to hold.
2: You cannot create MOs for customers who are on credit hold. An error message displays, and you cannot create the MO until the customer Credit Hold field is reset to No. With this setting, if the customer is over the specified credit limit but not yet on hold, you can create the MO. However, a warning displays and the action status of the MO is set to hold.
Note: You can remove credit holds using Sales Order Credit Maintenance (7.1.13) or Sales Order Auto Credit Approval (7.1.17).
If you are using EMT, the system applies the same logic as with EMT sales orders to determine how credit information is transmitted to the supplier. If the Action Status field on the header of an MO associated with a call is changed to HD (Hold), EMT creates a PO change document for the supplier under these conditions:
• The PO has been transmitted to the supplier.
• The supplier has not transmitted a status change indicating that the item has been picked or shipped.
• The customer associated with the call is authorized to have hold orders processed by a supplier (EMT Credit Flow is Yes for the customer).
• The supplier is authorized to receive orders placed on hold (Send Credit Held SO is Yes for the supplier).