Customer Credit limits

It is like a loan given to customer with payment terms to limit the risk with client. Also it doesn’t mean limiting orders instead like negotiating advance terms or bank guarantee when reaching max credit limit.

Example standard is set in organization to provide as 15 days credit limit to generic users then some customer may request 60 day credit limit which requires negotiations by higher ups like increasing the rate etc as system gives warning extending limit to generic users.

A/R->Setup->parameters->Credit rating

Credit limit type:

  • None: No credit rating to all customers however manually apply to each individual customer
  • Balance: Check limit on existing balances
  • Balance+Packing slip or Product receipt: Checking balances plus in process transactions
  • Balance+All: All transaction in process and sales orders or any.