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Credit Management is the short and long-term cash/non-cash financing resources that a business obtains from banks, leasing institutions or other financiers; It is the monitoring and control of the entire process from contract acceptance to completion and closing of principal, interest, tax (BSMV, KKDF) and expense payments. Credits module in Workcube ERP architecture; It works directly integrated with Finance & General Accounting, Cash Flow, Budget Management and Project Management (PMS) modules. Contract information, repayment plans (amortization tables), collection records and exchange rates are combined on a single platform, providing complete financial transparency.

The Importance of Credit Management for a Business

Credit and financing management has a vital role in maintaining a company's liquidity balance and ensuring sustainable growth: Cash Flow and Liquidity Assurance: By ensuring that the principal and interest payments due are reflected in the cash flow (Cash Flow) of the business on time. It prevents surprise liquidity crises. Cost and Interest Load Control: It ensures that financing expenses are controlled by calculating interest, BSMV, KKDF and bank expenses correctly according to the loan type (Revolving, Installment Commercial, Spot, Leasing). Project-Based Financing Cost: It allows realistic measurement of project profitability by connecting the loans directly to the relevant investments and projects (e.g. machinery purchase, facility investment). Multiple Currency and Exchange Rate Risk Management: It enables instant tracking of the exchange rate difference burden and rediscounts arising from exchange rate changes of loans drawn in foreign currencies (USD, EUR). Financial Scenario Planning: Allows to simulate the impact of credit burden on the business balance sheet in possible interest rate changes or cash flow scenarios.

Life Cycle and Process Flow in Workcube

Stage	Module / Display	Operation / Document	Description
1. Description	Finance / Loans	Credit Card Creation	Credit institution, contract number, transaction type (Leasing, Bank Loan), interest rate and project matching is done.
2. Collection / Usage	Finance / Credits (Collections)	Credit Withdrawal Record	Transfer of the loan amount to the company bank account (Collection table) and debit to the relevant bank account recording.
3. Amortization Schedule	Finance / Loans (Payments)	Creating Payment Schedule	Principal, interest, VAT (leasing transactions for), BSMV and KKDF expense items installment-based planning.
4. Installment Payment	Finance / Offset Voucher	Instalment Redemption & Voucher Record	Payment of the installment due; deducting the principal from the debt and transferring the interest/expense to the 780 Finance Expense account.
5. Closing & Reporting	Finance / Cash Flow	Loan Closing & Analysis	When all installments are paid, the loan is deactivated, the bank and the general ledger completion of reconciliations.

What Should Be Considered When Managing Credit Transactions?

Critical points that businesses should pay attention to in order to manage their credit processes without creating financial risks:

Correct Transaction Type and Contract Structuring
The accounting, legal and tax processes of different transaction types such as bank loan, spot loan, revolving (BCH) or Financial Lease (Leasing) are different. In Workcube, the Transaction Type must be selected correctly and the contract and reference numbers must be entered completely.
Flexible Payment and Collection Table (Amortization Management)
In loan payment plans, distinctions between principal, interest and expenses (BSMV, KKDF, VAT, etc.) must be made clearly. Incorrect interest and tax separations lead to base errors in corporate tax and VAT returns. Workcube Tip: Payments and Collections tabs are managed independently on the Workcube Credits screen. In leasing transactions, VAT and non-VAT rental amounts are automatically separated together with tax-expense items, thus preventing the risk of incorrect tax declaration.
Cash Flow and Financial Scenario Integration
Including future loan installments in cash projections is critical to see the company's payment ability. Workcube Tip: When the "Show in the Scenario" option on the screen is selected, the unpaid loan installments are automatically reflected in the Workcube Cash Flow and Budget Scenarios; Thus, future liquidity shortages are detected in advance.
Project and Responsible Based Cost Assignment
It should be defined for which investment or project the loan is used. Associating the loan with the relevant Project (e.g. Factory Investment) and Responsible personnel in Workcube ensures that the financing expenses are directly charged to the cost of the project (Activity Based Costing).
Exchange Rate and Exchange Rate Difference Risk Management
For loans drawn in USD or EUR, daily CBRT exchange rate updates and month-end rediscount/exchange rate difference valuations must be made without interruption. Workcube's multi-currency support instantly updates the TL equivalent of the foreign currency debt.
Automatic Accounting and Offset Slip Link
As loan payments are made, a journal entry is produced with a single click via the Offset Slip link on the top right, and 300/400 Bank Loans and 780 Financing Expenses accounts should be automatically updated, eliminating manual accounting errors.

Loan registration is carried out by determining the required Transaction Type, Loan Number, Credit Institution and Interest Rate of the Loan for the loan agreement made on the Loans screen.

Attention: Before performing loan transactions, you must define Loan types and Transaction Categories. For more detailed information about the parameters to be defined, you can read our article titled "Credit".

1. Information regarding the payments made for the loan is entered in field no.

2. Collection information regarding the loan and the contract to which it is related is entered in the field no.

Attention: In the Budget Items and Chart of Accounts for payment and collection transactions; Data regarding payment and collection must be defined.

Transactions are carried out using the + icon in the marked fields for the new payment and collection to be made based on the credit.

The total Payment and Collection amounts made for the loan are displayed in the 3rd field.

Records related to the credit record are followed on the listing screen. The requested information is displayed according to the selections made in the filter field. With the Grand Total information, total payment and collection information for all loans belonging to your company is tracked.

Limits

Credit institutions assign a limit to a business before granting it a loan. Limits are the total loan amount you can get from that institution. The credit limit for the institution to which you will lend is determined by;

Path: ERP > Finance Accounting > Credit > Limits screen.

The results of loan payments and collections can also be followed through Cash flow and FA-Agenda Summary to the Manager reports.

Path: ERP > Finance Accounting > Cash Management

Path: BI > Reporting > Report > Agenda > FA-Agenda

Credits Job Functions and Implementation Steps

Bu ekranı %100 kullanmak için aşağıdaki implementasyon adımlarının tanımlanması ve set edilmesi gereklidir.

Credit Type / settings.form_add_credit_type Param Wiki

Bireysel, Kurumsal ve Ticari Krediler ve bunların alt kırılımlarının girilmesi için kullanılır.

Loan Contract,Page Designer / credit.list_credit_contract Page Designer Wiki

Bankadan alınan krediler, kredi sözleşmesi ve finansal kredi sözleşmesi olarak kredi altından girilir. Kredi ve Limitler ile bankaların ve satıcıların yapılan sözleşme karşılığı; kredilerin ödeme ve tahsilat işlemleri gerçekleştirilir.

Credit Agreement,Page Settings / credit.list_credit_contract Xml Setup Wiki

Credit Collection,Transaction Category / settings.list_process_cats Process Cat Wiki

Bu sayfanin cf_big_list_search'ü olusturulmustur.

Credit Payment,Transaction Category / settings.list_process_cats Process Cat Wiki

Bu sayfanin cf_big_list_search'ü olusturulmustur.

Financial Lease Contract,Transaction Category / settings.list_process_cats Process Cat Wiki

Bu sayfanin cf_big_list_search'ü olusturulmustur.

Transaction Category,Credit Agreement / settings.list_process_cats Process Cat Wiki

Bu sayfanin cf_big_list_search'ü olusturulmustur.

Total 7 Register

XML Settings

XML Settings define page-specific operating rules. It is set in the XML section under Page Settings on each page.

is_detail_credit_contract Tahsilat ve Ödeme Bilgisi Detaylı Görüntülensin mi?

Evet = 1 Hayır = 0

Seçim

is_agreement_no Sözleşme No Görüntülensin mi?

Evet = 1 Hayır = 0

Seçim

is_credit_employee_id Sorumlu alanları görüntülensin mi?

Evet = 1 Hayır = 0

Seçim

Total 3 Register

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Aydin ERSÖZ - 07/11/2024

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About Workcube Objects

Credits

Loans received from the bank are entered under loan as loan agreement and financial loan agreement. Credits and Limits and contracts made by banks and sellers; Payment and collection transactions of loans are carried out.

Type: WBO Version: Catalyst v5 Licence: Standard Author: Workcube Core