Credit Check2

Oracle Credit Management
Customer Credit Score

and Integrations
Presented by Venkatash Kovela
Rapidigm Inc.
Presenter Introduction:
Venkatash Kovela
Rapidigm Inc.
Contact:
Vkovela@Rapidigm.com
Session Agenda
Release Information
Who Should Use?
Benefits of using OCM
OCM Advantages
OCM Integrations
Brief OCM Functionality Overview
Scoring Model Strategy
Case Folder View
Question and Answers
Page 3
September 5, 2016
Release Information
11.5.9
11.5.10
11.5.10+
FP.G
FP.D
FP.F
OCM.A
Rollup Patch
OAF 5.7H
Page 4
OCM.B
OAF 5.10
OCM.C
September 5, 2016
11.5.10+
OCM.D
Who Should Use?
Industry Focus: Practically any industry
Suitable for customers who use home grown solutions

and/or have extensive customizations for credit
application review and approval processes
Customers who are investigating and spending on high

budgets and have manual decisions in place
Customers who have extensive credit policies including

global risk zones
Customers who Credit Agencies like Dun and

Bradstreet (D&B), Global Credit or Seafax etc for credit
decision
Page 5
September 5, 2016
Benefits of using OCM
Good customer scoring strategies will have better

visibility, quicker decision making, reduces manual
efforts and increase in the profitability
Reduces the credit-to-cash life cycle
You can have aggressive and/or conservative credit
policies based on customer classes
Track credit performances and history of credit
decisions and run reports as needed
Continuous and scheduled periodic credit evaluations
for high risk customers or for all customers
Matches global credit policies
Strengthen internal controls and policy compliances
Page 6
September 5, 2016
OCM Advantages
It can be easily configured on top of an existing 11i

implementation (minimum 11.5.9+ with Fin-Pack.D)
Easy configuration depending on requirements.
Online credit application and approval process will

eliminate many home grown systems
Controls escalating and higher incidences of bad debts
Reduces collection cost and diminishing returns
Lack of visibility in International Credit. Can handle

financial risks in global market
Page 7
September 5, 2016
OCM Integrations
OM
Approval feedback
Submit Request
Review, Score
and Recomend
in OCM
Credit Application in
OCM
Submit Request
OLM
Page 8
Approval feedback
September 5, 2016
Uses various source data

points including AR, OM,
OLM, TCA, TM, Collections
and third party D&B etc (can
be extended to other modules
and Oracle instances)
OCM Functionality Overview
Create manual credit applications at various party and

customer levels for trade and term credits.
Integration with Oracle Order Management and Oracle

Lease Management for credit application and approval
process
Determine the need of handy check-list data points for

manual credit reviews
Determine credit scores based on business and

corporate credit strategies
Scoring based on values outside Oracle instance
Perform automated credit analysis based on scores
Page 9
September 5, 2016
OCM Functionality Overview
200+ standard data points available including financial,

credit, collections, aging etc.
Define additional custom data-points for scoring and
check-lists views
Suggest manual or automated credit recommendations
Use Oracle Approvals Management Engine (AME) for
internal approval hierarchies
Purchase/Update customer/prospect data using
integration with D&B
Batch load customer data received from D&B
Use D&B data points for online customer scoring
Monitor Credit Performances
Page 10
September 5, 2016
Scoring Model Strategy
Build a suitable corporate across the board customer

scoring strategy
Scoring Data Points can be numeric or alpha-numeric

like Country Code, D&B Rating etc.
Each alphanumeric data point must have its own

range, e.g., Range Low = 5A1 and High = 5A1
Prefer data points values with percentage and/or with

number values like weighted average days paid etc.
More data points used more complex will be the

scoring strategy
Page 11
September 5, 2016
Scoring Model Setup Elements
Currency
Identify scoring data points
Set value ranges
Assign score points 0 for low and 100 for best score
Assign weights to make 100
Calculation example:
Data Point
WAP Late Auto
Pct Deliquent AR
Page 12
Value
Score
Points
13
10
Weight
40
20
Customer Score:
September 5, 2016
Calculated
Score
60
24
40
8
32
Scoring Model - Example
Page 13
September 5, 2016
Alpha-Numeric Data Points
Same
Score
Page 14
September 5, 2016
Additional Data Points
Extensible functionality (future Oracle Release)
Associate a PL/SQL
function to a data
point to derive the
data point value
during runtime.
Page 15
September 5, 2016
Automation Rule - Setup
Page 16
September 5, 2016
Check List View
Page 17
September 5, 2016
View of a Case Folder
Page 18
September 5, 2016
View of a Case Folder
Page 19
September 5, 2016
Questions and Answers

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Oracle Credit Management

Customer Credit Score

Who Should Use?

Benefits of using OCM

Brief OCM Functionality Overview

Scoring Model Strategy

Case Folder View

Question and Answers

Who Should Use?

Industry Focus: Practically any industry

Suitable for customers who use home grown solutions

Customers who are investigating and spending on high

Customers who have extensive credit policies including

Customers who Credit Agencies like Dun and

Benefits of using OCM

Good customer scoring strategies will have better

It can be easily configured on top of an existing 11i

Easy configuration depending on requirements.

Online credit application and approval process will

Controls escalating and higher incidences of bad debts

Reduces collection cost and diminishing returns

Lack of visibility in International Credit. Can handle

Uses various source data

OCM Functionality Overview

Create manual credit applications at various party and

Integration with Oracle Order Management and Oracle

Determine the need of handy check-list data points for

Determine credit scores based on business and

Scoring based on values outside Oracle instance

Perform automated credit analysis based on scores

OCM Functionality Overview

200+ standard data points available including financial,

Scoring Model Strategy

Build a suitable corporate across the board customer

Scoring Data Points can be numeric or alpha-numeric

Each alphanumeric data point must have its own

Prefer data points values with percentage and/or with

More data points used more complex will be the

Scoring Model Setup Elements

Identify scoring data points

Set value ranges

Assign weights to make 100

Scoring Model - Example

Alpha-Numeric Data Points

Additional Data Points

Extensible functionality (future Oracle Release)

Automation Rule - Setup

Check List View

View of a Case Folder

View of a Case Folder

Questions and Answers

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