The business partner's credit limit

For invoice-to business partners and invoice-from business partners, you can set a credit limit.

Credit checking is performed during sales order or purchase order entry for the invoice-to business partner or the invoice-from business partner.

If you perform credit checking for the business partner, LN checks that the sum of the open orders, the open invoicing batches, the open invoices, and the amount of the new order does not exceed the credit limit.

The credit rating that you select for the business partner determines when you perform a credit check.

For the invoice-to role of the business partner, you can specify a credit limit that applies to:

  • All departments of all companies of your multicompany environment.
  • All departments related to a specific financial company of your multicompany environment. This means that you can specify a credit limit for each financial company and company of type Both.

For the invoice-from role, you can specify a specific credit limit for each department.

Checking the credit limit

To perform a credit check, LN checks that these amounts do not exceed the credit limit:

  • The total amount of open orders of the business partner for all sales offices or purchase offices in the multicompany environment or the financial company for which the credit limit is defined.
  • The invoice balance for the invoice-to business partner in all financial companies of the multicompany environment or the financial company for which the credit limit is defined.
  • The balance receivables of the business partner in all financial companies of the multicompany environment or the financial company for which the credit limit is defined.

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