Credit Limit Checking

Credit Limit Checking, or CLC, checks the credit worthiness of a customer account and determines if further order lines can be accepted and processed.

It uses:

  • A credit limit - the amount of credit the customer is allowed. This is held on the customer's chart of accounts record.
  • The account balance - calculated at the present time from the credits and debits on the account.
  • The on-order balance - the value of sales orders entered but not fully processed to payment.
  • The available credit amount - calculated from the above figures and compared to the size of the order line being entered. If the value of the order line being entered exceeds the available credit amount, it fails CLC.
  • CLC override - any overrides set in the operator miscellaneous permissions, which are maintained using the Security Console or User Manager.

How is the Credit Limit Check Calculated?

The available credit amount equals the CLC limit plus account balance minus the on-order balance plus the CLC override.

The line fails the CLC if the available credit calculated is less than or equal to 0.

The line passes the CLC if the available credit calculated is greater than value of the order line.