TRAFXS Systems - Credit Processing
TRAFXS Credit Processing Solution
A broad set of credit and treasury controls have been incorporated in the TRAFXS system. These include approval of both customers and contracts, daily monitoring of contract values based on commodity market prices, and letter of credit processing and monitoring.
All new customers must be approved by the credit department. Contracts must be approved by credit and/or treasury before transactions may be billed against them. Finally, each contract revision is subject to accounting review, during which accuracy of formula pricing and other key billing data is verified.
The credit, treasury, and accounting review processes have been deigned using an in-basket approach, in which each department can quickly call up a list of all contracts awaiting their inspection.
The amount of credit assigned to a customer may be any combination of an open line and letters of credit. Credit limits are automatically reduced as letters of credit expire.
Credit exception report, in which customers meeting any of several credit-related exception conditions can be reviewed. These include credit limit violation, accounts receivable delinquency, and overdue financial statement.
Contract exception list, produced nightly, in which each contract is re-valued based on market conditions. Those contracts exceeding posted credit limits are listed for credit review.
Letters of credit may be associated with one or more contracts. Letters may be listed and reviewed by customer, financial source (bank), or active months.