TRAFXS Systems - Credit Processing
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.
Additional Features
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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.
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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.
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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.