Oracle Credit Management Integration (D & B Integration)

Preface

In today’s turmoil world, it is need of an hour for the companies to maintain sustained growth along with financial stability. Companies are in business relationship with multiple parties which are located globally. They are required to take complex decisions such as, how to evaluate parties, to what extend business should be done with them. Oracle Credit Management provides an approach which helps companies to respond to above challenges. Still Credit Management needs to rely on power of trusted information. D & B is one of such source which is acknowledged worldwide.

Oracle Credit Management Overview

Oracle Credit Management provides information and tools required to monitor and evaluate the creditworthiness of party and enable user to take decision faster. It integrates with other Oracle EBS applications such as Oracle Order Management, Oracle Lease Management and Oracle Loan Management to incorporate credit review process in their business flow.

Events like, order on credit review, a new lease application or new loan application can be put for credit review process to Oracle Credit Management which in turn will generate credit application for the same. Oracle Credit Management lays down framework to analyze Credit application. After analyzing application, recommendations are suggested by credit analyst for the specific event. E.g. For lease application credit analyst may recommend to change payment plans.

What is D &B (Duns and Bradstreet)?

Dun & Bradstreet is American public company that licenses information on businesses and corporations for use in credit decisions, business to business marketing and Supply Chain Management. It maintains a database of over 225 million companies globally and over 53 million professional contact names using a variety of sources. Approximately 44% of content comes from Europe, Middle East and Africa, 38% from America and 18 % from Asia Pacific. The Database is updated more than 1.5 million times a day.

Need of Credit Management Third Party Integration (D & B)

The combination of Oracle EBS application with D & B Data product provide powerful tool to companies of all sizes and types. The integration of various D& B Data product and oracle EBS means more quick and secured party analysis and business transactions.

D& B Data Product helps to answers many tough questions including:

1.       Whom I am doing business with and how much money is involved?

2.      How do I identify and track risky parties?

3.      Am I meeting diversity goals and reporting requirement?

4.      Am I doing business with preferred parties and meeting internal compliance?

Many factors make it hard to answer these questions, but single and largest driver of this challenge is incomplete and inaccurate party information. D & B data product meets these needs of businesses that transact business worldwide.

Third Party integration can be done to obtain any of the following D & B data products.

· Business Verification

· Quick Check

· Delinquency Score

· Global Failure Risk Score

· Financial Standing

· Decision Support

· Enterprise Management

· Commercial Credit Score

D & B Data Elements

The complete D&B database includes over 150 key business data elements. Each data product consists of a fixed set of data elements. These data elements provide information that you can use to identify, contact, and evaluate the credit risk of parties.

A few of the available data elements are:

•D-U-N-S Number: Unique business identification number assigned by D&B to each commercial entity in the D&B database. If an organization has multiple locations, each location has a unique D-U-N-S Number.

•D&B Rating: Rating that indicates a company's creditworthiness. The rating usually consists of a financial strength code and a risk indicator.

•Local Business ID: The primary business identification number assigned to the business by a government agency, chamber of commerce, or association

Purchasing D & B Information and Mapping

Third Party integration provides functionality of online data purchasing. To purchase D&B information about businesses; you must have a contract with D&B for its Data Rationalization Service. This is used to purchase Duns and Bradstreet information on specific parties from D & B Database. The information can be purchased irrespective of whether, the party data exists in TCA (Trading Community Architecture) Registry or not.

For the parties which are stored in TCA Registry; the D & B information is updated either through online sessions or batch upload process. Batch Upload can be used to update D & B information for large number of parties on regular schedule or whenever it’s required. The information from D & B is mapped to appropriated columns in TCA Registry. If Party data is not available in TCA Registry, a new party is created using D & B Data. In case if the data is not available in D & B Database then company can order an investigation to get the necessary data. The D&B information is integrated with the party records in the TCA registry to maintain accurate information that you can use to evaluate credit risks.

Benefits

1.       Better understanding of Parties for Better Decision

2.      Managing Parties financial Risk – Risk in Party portfolio can be managed in better way including item like debarment indicator, Severe risk indicator, bankruptcy indicator, D & B Rating

3.      Business can be established with reputed parties. It can be used to evaluate entire supply chain of product i.e. it can be used to evaluate suppliers/customer beyond immediate supplier/ customer. Thus reputational risk can be minimized.

4.      Easy for compliance and reporting purposes