Credit limits

The credit limit is the outstanding balance amount a customer is allowed by the distributor before the customer’s orders are placed on credit hold. The system adds the customer’s total balance, on-order balance, and future-order balance, then compares this number against the credit limit value. If the credit limit value is exceeded, then the order are placed on credit hold.

The credit limit can be used at the group level in different ways. It can be set as a hard limit for all members of the group, it can be used as one of the checks for an individual member of the group, or it can be bypassed so all credit checking is based upon the limit for the individual member.

Specify group credit limit settings in Customer Master Group Setup-Credit. Select one of these values in the Apply Credit Limit By field:

• Apply Group Limit: Apply the group credit limit to all members of the group.
• Group in Hierarchy: Apply the group credit limit or the customer credit limit to the member.
• Bypass to Customer: Apply the credit limit based on the member’s customer settings.

The default credit limit is zero. Retain this value if you select Bypass to Customer, or to impose no credit limit restrictions on all members of the group. Otherwise, specify the credit limit value for the group in the Credit Limit field.