Streamlining Credit Risk Management in Work Order Dispatch with Dynamics 365 F/SCM

Dynamics 365 Finance and Supply Chain Management (D365 F/SCM) has introduced a new enhancement in version 10.0.44 with the Credit limit check on work order dispatch feature. This update significantly improves credit management for organizations responsible for maintaining customer-owned assets, particularly those in manufacturing, energy, and field service industries. Automating credit checks during the dispatch process eliminates the need for tedious manual interventions, all while reducing financial risks.

Why This Feature Is Essential

The new credit limit check functionality offers three pivotal advantages for proactive risk management:

Real-Time Risk Prevention

This feature automatically halts work order dispatching if the customer’s forecasted balance exceeds their credit limit. By combining outstanding sales orders with anticipated project credit from work orders, it preemptively addresses credit overextension without requiring manual checks.

Flexible Enforcement Options

Organizations can customize how the system responds when a customer’s credit limit is exceeded with:

• Warning mode, which allows dispatches to proceed with manual overrides, offering flexibility for low-risk scenarios
• Error mode, which prevents dispatch entirely, providing a stricter enforcement mechanism for high-risk customers

This adaptability lets businesses tailor the credit limit checks to align with their risk tolerance and operational policies.

Holistic Visibility of Credit Exposure

The integration of work order project credit with traditional sales order data provides a unified view of customer liabilities. This eliminates the need to juggle disjointed systems or reconcile outdated reports.

Outdated Workarounds No Longer Needed

The introduction of this feature allows businesses to retire several inefficient legacy practices. Here’s how it compares:

Legacy Workaround	New Feature Benefit
Manual spreadsheet tracking of customer balances	Automated aggregation of sales orders + work order credits
Custom Power Automate flows to sync disparate data	Native integration between Asset Management and Credit & Collections
Post-dispatch reconciliation reports	Preemptive blocking before resource allocation
Informal agreements to bypass credit checks	Configurable warnings or error enforcement with audit trails

By transitioning to these advanced tools, organizations can focus less on manual processes and more on improving financial outcomes.

How to Implement the Credit Limit Check Feature

Activating and configuring this feature in D365 F/SCM is simple and straightforward. Here’s how to get started:

• Enable the Feature
  • Navigate to Asset Management > Setup > Asset management parameters > Work Orders tab.
  • Set Credit limit check on work order dispatch to Yes
• Configure Messaging
• Choose your preferred system response in the Message when exceeding credit limit field:
  • Warning for flexible enforcement
  • Error for strict enforcement
• Set Customer Credit Limits
  • Update individual customer records by going to Credit and Collections > Customers > All customers > Credit and collections FastTab
  • Define the credit limit specific to each customer to ensure accurate monitoring

Pro Tip: Combine this enhancement with existing credit management tools, including blocking rules and automatic credit limit adjustments, for end-to-end financial control and risk mitigation.

A Win for Operational Efficiency, Risk Management

With the Credit limit check on work order dispatch, the system introduces a robust tool that streamlines credit oversight while embedding risk management directly into operational workflows. For organizations managing service contracts or maintenance agreements, this feature is a major leap forward.

By automating credit checks, businesses can reduce administrative overhead and ensure financial risks are caught early, improving both operational efficiency and financial stability.

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