Credit checking and placing orders on hold
The Credit Limit and Hold Period specified in Customer Setup and Customer Ship To Setup control credit checking. The first credit check compares the credit balances to the credit limit. If the credit limit is exceeded, the order is placed on hold. If the first credit check does not put the order on hold, the hold period is checked.
If the hold period is not zero and a balance exists in that period or higher, the order is placed on hold. If a credit limit or hold period is zero on the Customer Ship To Setup record, the value from Customer Setup is used.
If a value is specified in the Minimum for Credit Check field in Customer Setup-Credit, the absolute value of the sales order, which includes all charges and credits such as addons, discounts, rebates, and taxes, affects credit check logic.
If the absolute value of the sales order is less than or equal to the Minimum for Credit Check value, a credit check is not performed. The hold periods, credit limits, and minimum and maximum order values on customer and shipto records are ignored. If the value in the Minimum for Credit Check field is zero, a credit check is performed on all sales orders.
The minimum credit check value is applied wherever credit checks are performed. Functions include order entry, batch update, back order fill, order copy, and SX.api. The value is displayed in Customer Inquiry-Period Balance History and the Customer Master List Report.
This table shows when the Customer Setup credit limit and hold period values are used.
| Shipto credit limit | Shipto hold period | Customer credit limit | Customer hold period | Ship To balances included in Customer balances |
|---|---|---|---|---|
| 0 | 4 | Used | Ignored | Yes |
| 100 | 4 | Ignored | Ignored | No |
| 100 | 0 | Ignored | Ignored | No |
| 0 | 0 | Used | Used | Yes |
You can use additional credit limit hold settings at the company and warehouse levels to increase customer’s credit limit and maximum sales order amount. You can use the settings to reduce the number of orders that go on hold and the time required to review and release the orders.
You can set the Credit Limit Tolerance Percentage and Max Order Amount fields in these functions:
- SA Administrator Options-Documents-Sales Orders-Processing
- Product Warehouse Description Setup
The settings bypass standard logic for credit hold limits. The settings at the warehouse level override the values that you specify at the company level.