How To - Credit Rating

Adding Credit Ratings

The default credit rating exists after install and you can create extra credit ratings as required.

  1. Click the Setup tab
  2. Select the Credit Ratings option
  3. Click the Add button in the lower right
  4. Enter the following information in to the fields provided:
    • Name – a descriptive name for the credit rating which will be applied to accounts
    • Terms – this sets the due date on invoices. The due date is determined on the date it is closed and based off that date. The term can either be a fixed day, or a time period. A term of “+30 will set the due date 30 days from invoice date (not close, or sent or created dates). A term of “10 will set the due date on the 10th day of the month after the current date. If the Invoice close date is on Jan 1st, the Due Date will be Jan 10th. If the Invoice is closed on Jan 11th, the Due Date will be Feb 10th. +0 = Due On Receipt
    • Sort Order – represents the order in which items will be displayed in their respected drop down menus through out the application. This is an optional field where the lowest number will display its value at the top of the list
  5. Click Save to save the credit rating, or Save/New to save and create another
  6. Next, click on the name of the credit rating you created:
    • Under Payment Terms click Add (Payment Terms are the rules that will fire in sequence as added)
    • Enter a number in the Days Overdue field
    • Select the Action to take place (Late Fee, etc.)
    • Select whether this item is Active or not
    • Click Save
    • If prompted with a profile question enter the proper information and click Save (see ‘Adding Action Scripts’ below for more information)
    • Click Add again under payment terms to add a new one to build up your list

Adding Action Scripts

Actions are scripts in the system that perform various tasks. The default system actions can be found by going to the Setup tab -> Actions l

Note: Actions will be performed on any invoice with a due date earlier than the date you run the billing process on (i.e. regardless of the bill run date range the credit rating 唠Ҁres prior to billing and will see if there are any overdue invoices as of NOW) so for example the customer may receive multiple emails for multiple invoices on their account that are due the first time you have configured and run billing to process credit ratings.

Once you have created a credit rating with payment terms (for example a Residential credit rating with a payment term ‘Days Overdue’ value of 10 days) you can supply actions to take, e.g. sending

Sample Payment Terms

When you click on the name of your Credit Rating to view it’s configuration you will see a Payment Terms table displaying the terms you have setup (sample below):

As Credit Rating options are built up you can create multiple actions based on the number of days overdue and the system will execute as configured until the outstanding invoice is paid. Below is an explanation how the actions displayed in the Payment Terms table will execute.

Sample Payment Terms

Execution of Payment Terms

At 10 days overdue, the system will:

  1. Apply a late fee to the customer’s account
  2. Send a warning email telling the customer that an invoice is overdue

At 20 days overdue, the system will:

  1. Send a credit hold or cancellation email.

There can be as many ‘action’ items as you wish and will be executed based on the days overdue value.

Current Action Scripts Included

  1. Charge Late Fee - Applies a late fee as configured – shown as an example below, a 5% late charge of the invoice balance.
  2. Open Ticket - Allows the system to automatically create and assign a ticket, if for example you would like someone in a speci唠Ҁc department to follow up with the customer
  3. Send Email - Sends an email to the users billing address following the format of the email selected. (Note: email messages are setup in the Setup tab -> Communication Services -> Email Messages section)
  4. Set User Status - Automatically set the user status as entered here. When a user status is changed, the system will not add a transaction, the balance will be left as is (assuming there was no late fee applied as part of script number 1 above)

Applying Credit Ratings to Accounts

Once your Credit Ratings have been con唠Ҁgured, the steps below illustrate how to apply them to accounts. When billing runs it will process the applied any late fees based on the account’s credit rating.

1. Search for the appropriate account within the application

2. Click on the Tools tab

3. Under the Account Settings section click on Credit Rating

4. Select the appropriate Credit Rating from the drop down menu

5. Click the Save button

When Do Credit Ratings Run and on Which Customers?

Credit Rating is executed when the ‘Bill Runs’ option ‘Run Payment Retry Terms’ is checked AND one or more bill groups is billable. Credit Rating will execute on customer accounts that are in billable bill groups only. When Credit Rating is executed all customers will be processed regardless of whether they have been billed or not. (i.e. if a customer was billed last week and hasn’t paid, they may be overdue by now, so Credit Rating will pick them up at that time).

Credit Rating does NOT apply rules on OPEN invoices.  Invoices must be closed for the DueDate to become effective for payment terms.

Note: Timing of credit rating is critical, the code precisely calculates and fires scripts if they are x days past due based on the following calculation:

var overdue = now – overdue Invoice.  

DueDate - When using just the Day property of overdue, if it is even a second shy of 14 days, it is still 13 days. The Due Date on the invoice includes a timestamp and this time stamp is used and included in the calculation to determine if DueDate + date.NOW s enough to be greater than or equal to the days overdue value in your payment term rule set.  The implication is that if payment terms on small batches of customers runs long one day and short the next, a payment term that you intended to go out on the 15th day of the month as example may not match requirements on the 15th and may spill over to the 16th when duedate + date.NOW is greater than or equal to days overdue.

Credit Rating Scenarios

The below scenarios will attempt to portray a number of real situation examples of how credit ratings may be setup and applied to customers.

Scenario A: Credit rating is con唠Ҁgured to disable a customer’s account if they have not paid an invoice after 10 Days.

  • Bill day on user = 15
  • Invoice Due Date = 25th of month (+10 / Due 10 days after the invoice is closed)

On the 25th of the month, the Change User Status script will execute and disable the customer account, a prorated amount in the form of a credit will be applied.  Customers account will stay in a disabled state until an Admin user enables their account. If the customer then pays on the 10th of the next month for example, an Admin will need to apply the payment, and manually activate the account.

Credit Rating Scenarios

Scenario B: Credit Rating is configured to set due date as of date of invoice close date, send an email if unpaid after 5 days, add a late fee after 10 days and change the users status to canceled after 30 days.

  • Bill Day = 1
  • Invoice Due Date = 1 (first of month, due effectively on the bill day of the customer)

As shown below, an example of how such a credit rating would be configured:


On the 5 day of the invoice being overdue (which would be the 6th of the month) the customer will be sent an email. On the 11th (10 days overdue) the customer will have a late fee applied, in this case 5% of the customers invoice balance was set. After 30 days overdue from date of invoice, the customers account status will be changed to ‘Canceled’, and a prorated amount in the form of a credit will be applied. Again in this case, if a customer then provides payment, an admin would need to enable the account manually As an example of the above in terms of transactions, see images below:

Scenario C:  Credit rating is configured to set the due date on the invoice to the 15 of the month regardless of delivery date of the invoice, then it should send an email warning customer after 10 days to pay the invoice, and after 45 days without the invoice being paid will apply a flat fee of $50 (late fee scripts are available for Flat Fee or Percentage amounts based on outstanding invoice balance).

  • Bill day on customer is 10 – Customer will be billed on the 10th of each month
  • Invoice Due Date will be set to the next 15th of the month regardless of when the invoice was delivered

Notice: The terms below are set as ’15’ without the ‘+’ (plus sign). This means that the terms relate to a day of the month and not ‘X’ days after the due date. For more detail see the ‘Terms’ definition at the top of this article.

Tracking Credit Rating Activity

  1. Click on the Reports tab
  2. Under the Account Reports heading click the Event Log
  3. On the Event Log table that loads click on the heading ‘Action‘ and enter a Filter of ‘ProcessPaymentTerms’ (this will return all the payment terms being executed on and which user they are associated with)
  4. To find more detail relating to actions, e.g. to see a snippet of the email that gets sent when the ‘Send Email’ action fires, you can then filter the report by date range by using the first and last date you see in the event log after filtering in step 3. This way you can get a full list of actions that have processed that may or may not be related to payment terms
  5. Finally, to confirm what has happened on specific accounts:
    • Click on the account link
    • Once on that customer, click the Reports tab
    • Under the Account Reports heading Click the Event Log
    • Scroll through to see all the actions taken directly on that customer account

Once you’ve created these filters you can create a saved list so that you can use these filters in the future without having to recreate them. See the article View Filters – Personal and Shared Role Filters for more information.

Pre-Seed Payment Terms for ProductionEnvironments

Note: Contact BluIP when turning up credit rating for the first time.

A pre-seeding script allows you to seed payment terms so that over due customers do not receive multiple email notifications at one time. This script will add payment term logs into the ‘paymenttermprocesslog’ which tells payment terms that it has already executed terms on the invoices listed and therefore will not execute the specific payment term again for the overdue invoices. The script should be run once for each credit rating in your system, it will add bogus data for credit ratings that are not on the account specifically but this will not cause problems.


The seed script will look at all DUE invoices and add payment term logs where the number of days due (per payment terms rule) is greater than the due date (if the days due is greater than due date, that means the time to apply that particular rule has already passed – so only future rules will apply)

If there are three invoices that are due in the system, the seed script will look at each and seed one or more of the rules (i.e. if the rules would have already run on a system that had payment terms running routinely). This leaves only the valid subsequent rules to apply on one or more of the due invoices.


If today is February 1st, the due date of an invoice is January 15th and three rules are setup (1 day overdue email, 30 days overdue email and 60 days overdue email) the outcome of pre-seeding payment terms will be as follows:

Invoice Due Date = January 15, 2016:

  • 1 Day overdue email = will get seeded (so an overdue email notification will not get triggered for this invoice)
  • 30 day overdue email = will occur at future billing
  • 60 day overdue email = will occur at a future billing

Example where all Payment Terms are Pre-Seeded

Current Day = Feb 1st, 2016

Invoice Due Date = November 15th, 2016

  • 1 day overdue email = will get seeded so that it will not be triggered
  • 30 day overdue email = will get seeded so that it will not be triggered
  • 60 day overdue email = will get seeded so that it will not be triggered


Credit Rating is Not Running:

  • Ensure the Payment Term rules are marked as ‘enabled’ (click on the credit rating, then the payment term and check ‘Active’)
  • Ensure billing is running/has been run since Credit Rating terms have been setup. Billing is required to run to perform the credit rating check
  • Ensure the Bill Group is ‘billable’. The Bill Group must be billable for billing to process the customers within that bill group. Check on the Setup tab -> click on the appropriate Bill Group name and check ‘Billable’
  • If Credit Rating has already run today and you expect an adjustment to credit rating to look at an invoice again the same day, you will need to update lastcheckeddate in the invoice table to NULL. This is the field that the system checks each day so that credit rating doesn’t run multiple times per day on the same invoice



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