Defining a credit line

If you use the Accounts Receivable application and plan to process bills of exchange, then you must set up credit lines for a banking institution. Use this procedure to define a credit line.

Note: Use this option only with Bills of Exchange. When you use bank risk processing in Accounts Receivable, you establish lines of credit for cashing BOEs at a discount.
  1. Access Bank (CB00.1).
  2. Select Credit to open Credit Risk (CB01.1).

    Use these guidelines to specify the field values:

    Credit Line

    Specify a unique code for the credit line.

    Credit Limit and Actual

    Specify the amount of available credit for the credit line.

    Margin Days

    You can specify the number of days that you will add to the bills of exchange due date before a bill of exchange is considered cashed and no longer a credit risk. If you leave this field blank, then no margin days are used.

    Beg Day / End Day

    To define a range of bills of exchange due dates for the credit line, specify the beginning and ending due dates. The range is used to select bills of exchange for discounted remittance.

    Curr

    You can select a valid currency code that represents the currency of the credit line. If you leave this field blank, then the currency defined for the bank account is used.

    Stat

    You can select whether the status of the credit line is active or inactive.