Credit limits and exposure

Credit exposure is the extent to which you are at risk if a customer defaults on payments, based on the total amount of credit you extend to the customer.

Credit limits can be set at the customer and shipto levels to limit the amount of exposure.

This table shows the credit limits set for Company ABC and its shiptos:

Company	Shipto	Credit limit
ABC		Yes
ABC	Main	No
ABC	West	Yes
ABC	East	Yes

In the example, ship to exposure includes ABC West and ABC East because they have credit limits. Customer exposure includes Company ABC, with no ship to on order, and ABC Main. Total exposure includes ABC, ABC Main, ABC West, and ABC East.