Credit Controls give you the ability to perform credit checks on Customers depending on their credit limit or overdue invoices.
Set Customer Credit Limit
SALES > Customers > Add a new Customer
Set Credit Limit field.
Methods for automating credit hold
You may put a customer On Hold status depending on their credit limit or overdue invoices.
How you assign credit control permissions to a user, and how to use these controls is explained below. See 1. Assign Permissions.
The behavior of Use Credit Limit and Use Invoices Past Due options are explained below:
| Option: Use Credit Limit | |
|---|---|
| Actions affected | Behavior |
| Create new Sales Order | When the user clicks save, the credit limit, existing balance and OPEN order totals are checked. If any of these exceed the credit limit then the Sales Order can only be saved with the status PENDING (CREDIT). This order is then effectively on-hold. |
| Edit an existing Sales Order | If the addition of Items takes you over the credit limit then changes/additions cannot be saved. |
| Create a new Sales Invoice (from Customer master) | When the user clicks save, the credit limit, existing balance and OPEN Invoice totals are checked. If any of these exceed the credit limit then the Sales Invoice can only be saved with the status PENDING (CREDIT). This order is then effectively on-hold. |
| Edit an existing Sales Invoice | If the addition of Items takes you over the credit limit then changes/additions cannot be saved. |
| Option: Use Invoices Past Due (overdue) | |
|---|---|
| Actions affected | Behavior |
| Create new Sales Order | When the user clicks save, outstanding invoices are checked for overdue invoices. If there are any overdue invoices then the new Sales Order can only be saved with new status PENDING (CREDIT). This order is then effectively on-hold. |
| Edit an existing Sales Order | If the addition of Items takes you over the credit limit then changes/additions cannot be saved. |
| Create a new Sales Invoice (from Customer master) | When the user clicks save, the credit limit, existing balance and OPEN Invoice totals are checked. If any of these are exceeded, the Sales Invoice can only be saved with the status PENDING (CREDIT). This order is then effectively on-hold. |
| Edit an existing Sales Invoice | If the addition of Items takes you over the credit limit then changes/additions cannot be saved. |
| Settings | Summary |
| Allow nothing | No documents can be created (useful for new Customers not yet approved). |
| Allow pending Sales Orders | And nothing else |
| Allow Cash Sales | And nothing else |
| Allow pending Sales Orders and Cash Sales | And nothing else |
The main functions of the Credit Controls are:
- Assign permissions (to a role) to enable or disable ‘On Hold’ status of a Customer or to approve Documents.
- To automate credit checks on Customers depending on their credit limit or past due invoices.
- To perform manual credit checks on Customers and defining which actions are allowed for Customers ‘On Hold’.
- Approve Documents with status of ‘Pending Credit’.
1. Assign Permissions
You can set user permissions to a role :
- to allow users to enable and disable On Hold status (i.e. credit check).
- to allow users to approve Documents.
Assign Permissions to enable or disable On Hold status
To enable or disable On Hold status for a Role, go to:
SETUP > Roles > Select a Role > Permissions tab > Scroll down to Customers section >
Set Change customer status On Hold field.
Check the box to assign the user permission.
Approve Documents in Pending Credit status
To assign approval permissions to approve Documents with a status of Pending Credit, go to:
SETUP > Roles > Select a Role > Permissions tab > Scroll down to Approval Permissions section
Check Customer Credits check box.
2. Automate credit checks
You may automate credit checks on Customers , in other words, put Customers on hold depending on their Credit Limit or Invoices Past Due criteria.
To automate credit checks, go to:
SETUP > Configuration > Sales section > Customer > View Customer Configuration screen > Edit > Credit Control section
Set Automated credit checks to ‘Use Credit Limit’ or ‘Invoices Past Due’.
Set Customer on hold to define which actions are allowed for Customers on hold.
OR
SALES > Customers > Select a Customer > View Customer Configuration screen > Configure > Credit Control section
Set Automated credit checks to ‘Use Credit Limit’ or ‘Invoices Past Due’.
Set Customer on hold to define which actions are allowed for Customers on hold.
3. Perform manual credit checks on Customers
Put a Customer On Hold from Customer Master
SALES > Customers > List All Customers > Select the Customers using the checkbox > Actions > Set On Hold status.
This action checks the checkbox On Hold. The On-Hold Action control disappears.
Remove On Hold status from Customer Master
Edit the Customer master, and uncheck the On-Hold box. The On-Hold button will re-appear.
Set On Hold status from the Customer List
The user will need appropriate permissions to use this control. Refer to section 1. Assign Permissions.
- Use the ‘Find’ Action ‘Customer with Overdue Invoices, or Advanced Search and use parameters to collate a list of Documents matching your criteria.
- Select the Customers you’re going to put on hold.
- CUSTOMERS > Actions > Set On Hold status.
Remove ‘On Hold’ status from the Customer List
The user will need appropriate permissions to use this control. Refer to section 1. Assign Permissions.
- CUSTOMERS > Advanced Search > On Hold(field) > Yes
- Select the Customers you’re going to remove from on-hold.
- CUSTOMERS > Actions > Take off On Hold status.
4. Approve Documents with a status of Pending Credit.
You can only Approve Sales Orders and Sales Invoices with a status of Pending Credit.
The user will need appropriate permissions to use this control. Refer to section 1. Assign Permissions.
Approve Sales Orders with a status of Pending Credit
To approve Sales Orders with Pending Credit status, go to:
SALES > Sales Orders > Find Orders awaiting Credit approval > Select Sales Orders > Action > Approve Credit.
Approve Sales Invoices with a status of Pending Credit
To approve Sales Orders with Pending Credit status, go to:
SALES > Sales Invoices > Advanced Search > Select Status as PENDING(CREDIT) in drop down > Select Sales Invoices > Action > Approve Credit.