Credit

The credit module is designed in Workcube in order to collect the loans opened by banks, leasing, or sellers and to follow up their payments. Like other FAB functions, credit transactions use accounting, current, budget dimensions and work with 3 currencies.

Credit institutions first allocate a limit to a business. Limits are the total loan amount you can get from that institution. You use this total amount sometimes at once, sometimes with multiple transactions. Each loan has a collection and payment schedule. For example, you can buy in 2 installments and pay in 24 installments. The loan consists of principal, interest/profit share, and expenses. In other words, you collect the principal and pay it back to the credit institution by adding the principal along with the interest/profit share and expenses.

Before Use
Before making credit transactions in Workcube, you should make the following definitions.

• Credit Types
• Transaction Types and Authorizations
• Budget Items (Expense and interest items and accounting codes)
• Bank Accounts (Bank Accounts must be opened)

Module Functions

• Credit Limits
• Credits
• Credit Agreement and Payment/Collection Table
• Credit Payment Screen
• Credit Collection Screen

Associated Functions in Other Modules

• Budget / Budget Management and Comparison Chart
• Budget / Expense Analysis
• BI / Standard Reports / Credit Analysis Report
• Bank / Bank Transactions List
• Cash Management / Cash Flow Statement

Tip:

Record the credit paytable carefully. The records you make appear in the cash flow statement at maturity. Checks, promissory notes, bank instructions, and running account payables are all in the cash flow statement. You should track your payment terms on the cash flow statement. You can access the credit agreement on the table.