Customer Credit Rating Procedure

Follow these steps to generate customer credit rating scores which consists of the routines for setting up the credit rating criteria, generating the customer credit scores and viewing the scores.  The Edifice Customer Credit Rating calculations are based on the Financial Industries FICO SCORE calculations.  Customer credit scores are determined by examining a number of critical categories of information, and then given a weighted percentage of the overall credit score.  The higher the category's weighted percentage, the more affect it has on the overall customer credit rating score.

Notes:  

• While you can run the Calculate routine at any time, but it may be best to run it at the beginning of the billing cycle when past due processing, shut off processing and lien processing are generally complete.

• The Past Due and the Shut Off processes include a customer credit ratings option to allow you to omit customers with high credit ratings from these processes.

• Edifice allows you to maintain customer credit scores individually by service.  This allows accounts having multiple services with different responsible parties (as may be the case in an owner/tenant situation) to have each service and responsible party scored separately.

• To see example calculations for Customer Credit Rating Scores, click More.

   

  Below are example credit rating criteria used to calculate customer credit scores:

  Example Credit Rating Criteria
  Category	Maximum Allowed (Threshold)	Credit History Days/Age	Weighted %
  Past Due	10	365	20
  Shut Offs	10	365	20
  Liens	10	365	30
  90-120 day Balances	500	365	30

  An example of the credit rating criteria entered during Service Credit Rating Criteria Maintenance:

  

   

  Example Customer Credit Rating Calculations based on the criteria above:

  Examples of Customer Credit Rating Score Calculations
  Customer 1	Category Count	% of Maximum Allowed	Weighted	Value	Score
  Past Due	1	1/10	.1 * .2	.02
  Shut Offs	0	0	0 * .2	0	0
  Liens	0	0	0 * .3	0	0
  90-day Balances	0	0	0 * .3	0	30
  		Accumulated Category Value		.02
  		Calculation and Customer Credit Rating Score		(1 - .02) x 1000	980
  Customer 2	Count	% of Maximum Allowed	Weighted	Value	Score
  Past Due	6	6/10	.6 * .2	.12	0
  Shut Off	4	4/10	.4 * .2	.08	0
  Liens	1	1/01	.1 * .2	.03	0
  90-day Balance	350	350/500	.7 * .3	.21
  		Accumulated Category Value		.242
  		Calculation and Customer Credit Rating Score		(1 - .242) x 1000	758
  Customer 3	Category Count	% of Maximum Allowed	Weighted	Value	Score
  Past Dues	8	8/10	.8 * .2	.16
  Shut Offs	5	5/10	.5 * .2	.10
  Liens	2	2/10	.2 * .3	.06
  Balance	350	350/500	.7 * .3	.21
  		Accumulated Category Value		.530
  		Calculation and Customer Credit Rating Score		(1 - .530) x 1000	470

   

Customer Credit Rating Steps:

Note:  To set up Edifice for generating customer credit rating scores, click More.

To calculate customer credit scores:

1.  Calculate the customer credit rating scores.

2.  View customer credit ratings during the Customer Inquiry:

• Service General Billing Area

• Customer Status Panel

3.  Run reports to view customer credit rating scores:

• Customer Statistics Report

• Aged Trail Balance Report