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Co-Existence Scenario for Credit Check

Credit Limits maintained in Oracle EBS On-Premise while Drop Ship Orders credit check in Cloud Order Management and credit exposure updates back to Oracle EBS on-premise.

Business Problem: 
For one of the technology services providers, as a part of the Oracle Cloud phase wise roll-out plans, only Drop Ship order management processes were being migrated to the Cloud. Oracle EBS on-premise would continue to be the system of record for master data as well as the rest of the non-drop ship orders would continue to be transacted in Oracle EBS on-premise.
Credit checking feature is the ability to check that the customer has sufficient credit available with the organization at the point of Order or Project booking.
Oracle provides credit check processes in Cloud Order Management and On-Premise Order Management standalone. It only accounts for credit exposure of the customer available in the respective applications. Credit exposure update/check of the customer from various other applications is not available for consolidated credit check. 

Hybrid approach was designed to meet this co-existence scenario.
  • An extension was developed which published the global customer exposure onto On-Prem OM exposure tables as well as it leveraged the On-Prem credit check engine for credit check processes across the various applications (Oracle Cloud, e-Business Suite and Oracle Cloud Projects). 
  • The premise of the design of this extension is to create and expose a custom webservice to Oracle cloud for credit check. This webservice would in turn call the R12 credit check engine, for credit check. The webservice would maintain the exposure of cloud orders in exposure tables of R12.
  • Oracle On-Prem engine is the central engine for credit check & global exposure would be recorded in EBS only. Credit Check is performed for customer considering the global credit exposure and assigned credit limit. Order or Project in turn might be booked or put on hold based on credit check. 

Design Key Features:
  • Customer credit limit would be maintained at Account level in eBS and it will be the source of truth for customer data. Credit limit should be in sync in On-Prem as well as Cloud.
  • Account number will be the primary key for the synchronization between Cloud & On-Prem customer.
  • Customer for which Infinite credit limit is required. It means order for those customers should not go into credit check process. It can be achieved by unchecking 'Credit Check' check box in Account Profile.

Oracle Order Management Cloud Order Booking/Order Update:
Custom webservice is used while order is imported in cloud. It will call Oracle EBS on-premise credit check engine for credit check. If the order amount is less than the available credit limit, Order will be created successfully and corresponding exposure will be published in Oracle EBS on-premise Engine with respect to Cloud OM . If order amount is less then available credit limit, order will be put on hold but still the exposure will be published in R12 exposure table corresponding to cloud OM.
In case of order update with respect to change in quantity or order cancellation, corresponding delta amount value will be passed in Oracle EBS on-premise exposure table.

Business Benefits:
Ability to have accurate customer credit exposure maintained in a co-existence scenario thereby minimizing financial risk.
Reusable solution which can be used across other clients with a similar phased implementation

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