Chapter 12 Defaulting rules are defined in the sales order. The initiating transaction affects an activity which in turn involves a payment term. This can be changed to suit the business needs at your organization. The system stops when it reaches a valid value at any one of these source locations. Typically most companies use the default from the customer invoice-to (Bill to). This will be your first encounter with credit management to grant your customer a credit of Net 30 days to pay for products shipped. This extends credit to your customer for 30 days, impacting your cash flow. In addition, you may also require the customer to pay with a specific payment method. Credit check rules Credit check rules are designed to check open balances for a customer before you can commit and transact another transaction with that particular customer. This enables your enterprise to avoid extending too much credit to a single customer and incurring a serious risk management problem. Credit checking for transactions only occurs on order transactions in Oracle Order Management and not for invoices