Summary

Credit history information can be attached to adjustment type codes in order to accumulate credit history on customer accounts. This is an optional feature that allows you to create a credit score for customer accounts based on the types of transactions processed on those accounts. For example, customer accounts processed in the Past Dues or Collections process, or charged an NSF fee using the Miscellaneous Charges feature (UB> Adjustments and Fees) can be assessed a credit value. Those values can then be reviewed to assess the credit risk of a customer.

Any adjustment that is created using an adjustment type code that has credit information attached (credit value and credit history days) will create credit line items on customer accounts. Credit information is attached to an adjustment type using the Adjustment Type Maintenance window (UB> Maintenance> Adjustment Type> Select an adjustment type.)

The Credit History Days field is used to select the number of days the credit line item created by the adjustment type code will stay on a customer account. For example, if a credit line item created by an adjustment type code should stay on the customer account for 120 days, enter 120 in this field.

The Credit Value field is the credit value of the credit line item created by the adjustment code. The credit value is user-defined and will be used to create a relative scale. For example, if Past Dues have a credit value of 50, Collections might create a credit value 100. Past Dues could also have a credit value of 1, and Collections might have a credit value of 2. As credit lines accumulate on the customer account, you can use these values to assess the credit risk of the customer account.

When adjustment transactions are processed on a customer account using an adjustment type code with credit information attached, a credit history line item will be created on the customer account. The credit history line item will display in the Credit History section on the Account Master Maintenance window (UB> Maintenance> Account> Open an account> Overview tab). You can right click on the Credit History section and select Export to MS Excel to create a spreadsheet of a customer’s credit history.

Step by Step

1     Create or modify an adjustment type code to accumulate credit history.

• Credit history is created by adjustment type codes. Create or modify the adjustment type codes in order to accumulate credit history on customer accounts.
• Open the Type Code Maintenance window (UB> Maintenance> Adjustment Type), and select an adjustment type code that should create credit line items on a customer account. This could be an adjustment type code used to assess Past Due penalties or the Collections adjustment type code (UB> Utilities> Setup> General tab> Collections Adjustment Type).
• Enter the number of days the credit line item should stay on a customer account in the Credit History Days field. For example, if the credit line item should stay on the customer account for one year, enter 365 days.
• Enter the amount of the credit line item created by the adjustment type code in the Credit Value field. For example, if the adjustment type code should create a credit line with a value of 25, enter 25 in this field.
• Use the Account alert, Receipt alert and Alert days fields if you would like the adjustment type code to generate an alert on the customer account.
• Click the Save icon when complete.

2     Generate credit line items.

• When an adjustment transaction is created using an adjustment type code set up with credit information, a credit line item will be added to the customer account (UB> Maintenance> Account> Open an account> Credit History section).
• As credit history accumulates on customer accounts, you can use the credit score (total of the credit line items) of a customer account to assess the credit risk of that account.