The ability to load and enforce Credit Limits is a valuable tool. With Credit limits loaded for both purchase and sale you can:
- Ensure that Customers are not leaving you open to unreasonable risk
- Ensure that you do not find yourself in a situation where Suppliers may stop supply.
Setting up a Credit Limit
The Credit limits are set up within the Contact Record (settings).
Any contact record > Accounting
Enter your chosen credit limit. NOTE: If the credit limit is set to Zero then it is treated as if there is no credit limit. Set it to 0.01 if you want to apply a credit limit.
Multi Currency Credit limits
- Limit to be loaded in your local currency
- Invoice values will be converted back to your local currency for Credit limit purposes.
How do I know when a Credit Limit is Reached or Exceeded?
When in a matter
If the Credit Limit of the Primary Participant (Customer/ Client) within an action has been exceeded, a warning will come up within the Action.
When in an Accounting Transaction
When entering Invoices the Credit limit of the Customer / Supplier is shown at the top left of the screen (if it is in Red the Limit was already exceeded prior to invoice). The total sell on the right will also be in red if the credit limit has been exceeded.
As the new line items are being entered in the draft invoice, the total will show in either green or red depending on the affect the invoice will have to the credit limit.
If the Credit limit is exceeded, an additional warning will appear on saving the Invoice. It is still possible to continue with the transaction.