The New option located on the Risk Definitions browser is used to record risk definitions. The following information is entered in the Risk Definition window.
Code: The code of the risk definition in the system. The Code field is mandatory. Alphanumeric characters can be used to assign the code. Risk definitions are sorted by code info. The code info is the basic data that will be used in search, sorting, selecting, grouping, reporting etc.
Description: The name or title of the risk definition. This field is not mandatory. The same description can be used for different risk definitions. However, all transactions such as search, sorting, selection, grouping, reporting etc. are also performed by the first 10 characters of the Description info.
Auxiliary Code: A secondary code field used to group risk definitions. Alphanumeric characters can be used to assign the auxiliary code. The Aux. Code is used to classify risk definitions by company-specific criteria. The Aux. Code can be used as a filter in reports. For effective reporting, company requirements must be considered while assigning auxiliary codes. Auxiliary codes are defined in the System Settings module. Auxiliary codes can be defined over the Aux. Code field located on the definition record. Information entered in the Auxiliary Code field does not necessarily have to be an auxiliary code defined in the system.
Authorization Code: Used to define detailed authorizations. The string is 10 characters long. Each user may be authorized to use different records depending on job definitions. Authorization codes are defined in the System Settings module. Records are encrypted according to the information provided on the Auth. Code field so that only the users who log in with the specified authorization code can access and process the records.
General Criteria
The relevant date range in which risk conditions will apply and the conditions under which the specified criteria will be applied to the selected AR/AP records are specified under General Criteria title.
Start/End Date: Indicates the start and end dates of the risk conditions. Start and End Date fields are mandatory.
Organizational Unit: Indicates the organizational unit of which transactions will be considered while applying the risk definition.
AR/AP Code: Indicates the AR/AP record(s) for which risk conditions will apply. The existing AR/AP records are listed. Users can select a single AR/AP record or apply risk definition to multiple AR/AP records by using the "*" character and AR/AP code characters.
AR/AP Auxiliary Code: AR/AP records for which the risk definition will be applied are selected using the auxiliary code. The existing AR/AP auxiliary codes are listed. Users can select a single auxiliary code or apply risk definition to multiple AR/AP records of the specified auxiliary code by using the "*" character and AR/AP auxiliary code characters.
Specific to AR/AP: It is checked if the related risk definition is specific to an AR/AP. If the Specific to AR/AP option is checked while selecting the AR/AP code, the “*” character cannot be entered in the selected AR/AP fıeld.
Trading Group: Indicates the relevant trading group for which risk conditions will apply. The existing trading groups are listed. Users can select a single trading group or apply the risk definition to multiple trading groups by using the "*" character and group code characters.
Criteria determination is performed for AR/AP account code, auxiliary code, trading group fields as below:
"" character must be entered for such criteria, in order to indicate all criteria. "" character means that "any character may be inserted in that field", and can be used in the beginning, middle or end.
- character in the beginning:* If the filter value is entered as **M.001, the transaction is applied to all records that have M.001 as last five digits, regardless of the first digit.
- character in the middle:* If the filter value is entered as TM*01, the transaction is applied to all records that have TM for the first two digits and 01 as the last two digits. The number of digits between the first two and last two digits is not important.
- character in the end:* If the filter value is entered as TM*, the transaction is applied to all records that have TM for the first two digits.
If application criteria field is left empty, it means that the criteria is not decisive. For instance, if AR/AP code is not entered, it will indicate that risk definitions will be valid for all AR/AP records.
Risk Currency: This field is used to determine the currency type by which risk tracking will be performed. The options are: Local Currency and Reporting Currency. If the Reporting Currency option is selected, transaction total is calculated over the reporting currency specified in the slip, and it is transferred to the relevant fields.
The exchange rate of the reporting currency is mandatory to save slips and invoices used to record AR/AP transactions.
Risk Control Type: This field is used to determine the method of risk tracking. Risk controls can be performed depending on totals or operation.
If the "Totals" option is selected, AR/AP risk totals are checked during risk controls. For instance, when a dispatch transaction is recorded, it is checked whether the risk total exceeds the risk limit total.
If the "Operation" is selected, controls are performed depending on the operation limit and risk limit is checked for each operation. For instance, when a dispatch transaction is recorded, it is checked whether this operation exceeds the dispatch risk limit.
In both case, in case of exceeding risk limit, transaction is either blocked or maintained, or user is warned depending on the relevant parameter for exceeding limit in system settings or AR/AP record.
Risk Limit Control on Transactions: The relevant transactions for which risk control will be performed are checked under this heading. Risk control is not performed for transactions that are not checked.
Details
Control criteria and control method are specified under the Details tab.
Risk Limit: Risk limit indicates the maximum deficit amount in AR/AP's budget. Operation limits specified in this field are considered according to the risk control and limit exceedance values.
Charge Account: Indicates the risk limit of charge account. Charge account risk is the total of AR/AP transactions generated except for the order, dispatch/receipt, customer/company check and promissory note operations.
Transaction included in Charge Account Risk:
- AR/AP Slips
- Bank Slips
- Safe Deposit Slips
- Purchase / Sales Invoices
- Checks / Promissory Notes
Customer Check/P.Note: Indicates the risk limit of Customer Checks and P. Note received from AR/AP.
Closed Risk: These are the risk amounts of the selected operations. These are the amounts entered by the user and reducing the risk for each operation of the AR/AP. The purpose of these fields is to enable the user to respond to the AR/AP risk directly.
Dispatch/Receipt: Indicates the risk limit of dispatches/receipts.
Order: Indicates the risk limit of orders in Deliverable status.
Total: This field determines which criteria lines will be included in the risk control when risk control type is selected as "Total". When this box is checked, limit, condition, and factor information is defined for the relevant line.
Condition: Indicates the condition on which the risk control in the line will be applied. The required condition can be recorded as a specific value, or entered using a formula.
Risk Factors: Risk factors shows when and by which amount the risk field will be updated in check/p.note transactions. Risk factors are given as a number between 0 and +1. Check and promissory note risk factor value appears as 1 by default. The fact that risk factor is 1 indicates the reliability of the AR/AP. When check or p. note is entered for an AR/AP of which risk factor is 1, totals are decreased as soon as risk info is entered in the Info menu > Risk Totals option of the relevant AR/AP card (before making payment). If risk factor is 0, risk total decreases only after making the payment. How to calculate risk total and risk method are specified in the other fields located in this window.
Control Warning Type: The method of risk limit exceedance control for AR/AP record is specified under the Control Warning Type field. The calculation method of risk total, transactions for which risk control will be performed and control method defaults are specified under the Finance Parameters > Parameters tab in System Settings module.
Method and control defaults selected in Finance Parameters are transferred to all AR/AP records. However, these defaults can be changed and the relevant options are selected under Details tab. Risk limit control can be performed for order, dispatch/receipt and other transactions separately. Control method is applied in two ways:
If the "Proceed" option is selected, risk limit control is not performed.
If the "Operation will be blocked" option is selected, the slip is not saved in case the risk limit is exceeded.
Included in Total: These checkboxes determine the relevant criterion lines which will be included in risk control when risk control type is selected as Totals. When the box is checked, limit, factor and condition values are specified.