Why use Credit Limit
Many companies specify a credit limit for their customers. If a credit limit amount has been entered on a customer, and the credit limit function is activated in the Sales Setup, then standard Business Central can give users a warning if the credit limit is exceeded when a sales order is registered. This is in the form of an information dialog box that is displayed in conjunction with order registration and has no significance in relation to the further order process.
Abakion Commerce Manager can now offer extra functionality in relation to credit limit, so that a credit limit field is inserted on the order header, which shows whether an order has been approved or blocked based on the customer credit limit, just as you have the option of manually approve an orders credit limit. You can also choose to use the values in the field in connection with exports to e.g., 3PL or similar.
Advanced functions setup
When you have downloaded Abakion Commerce Manager from App Source, this app must first be activated and then you must indicate via setup that you want to use credit limit control:
Select Abakion App Management – and then Detailed App Feature Setup
Check of the Credit Limit Control:
Next step is to setup Sales and Receivables:
In standard Business Central, you choose which criteria is to be used for the credit limit check. Abakion Commerce Manager uses the same principles, so it is therefore important to do this setup:
A warning is given during order registration, and the Credit Limit status of the order can become Blocked if:
Both Warnings: If the customer has an overdue balance and/or has exceeded the credit limit
Credit Limit: If the customer has exceeded the credit limit
Overdue Balance: If the customer has an overdue balance
No Warnings: There is no check for credit limit or overdue balance
How should the credit limit check be carried out:
- Order line net value incl. VAT based on the 'outstanding quantity' on the order line is included in the credit max calculation
Qty. to Ship:
- Order line net value incl. VAT based on ‘Qty. to Ship’ is included in credit limit calculation
- If you have installed the Abakion App 'Assign Qty', you can use this field as a calculation basis, thus the net value of the order line incl. VAT is calculated based on the number in the field ‘Assigned Quantity (Base)'
The credit limit status of the sales order is updated when the user runs the report 'Credit Limit Control' Regardless of whether you choose 'Do not Change' or 'Release' in the above setup. Orders that are blocked due to credit limit will always change to status 'Open', unless there are warehouse shipment lines associated with the order.
Do not change
- The order has been released before credit limit control but is blocked due to credit limit and the order status is changed to open. Subsequently, the order is manually approved by the user, or a payment is registered on the customer which offsets the outstanding balance, so that the order can be approved for credit max in the next run, then the order maintains the status open - and a user must manually release this.
- The order has been released before credit limit control but is blocked due to credit limit and the order status is changed to open. Subsequently, a payment is registered on the customer which offsets the outstanding balance, so that the order can be approved for credit limit in the next run, this results in the order status automatically being changed to Released.
- The order is approved manually by the user – there are no changes to the order status during subsequent runs – and the order must be released manually.
Her you specify the frequency of your planned Credit Limit Control:
The planned dispatch date on the order line is used, and with the above setup, the system will look at the order lines to be delivered up to and including today's date + 2 months.
Order lines that lie beyond this time horizon are not included in the credit max check.
Setup on Customer
If you want to check whether sales orders fall under the credit limit, it is important that a credit limit amount is specified on the debit card:
If there is 0 in the field shown above, the credit limit is not checked, so if you have customers who ALWAYS should be blocked and assessed for every sales order, then set a minimum value 1.
Remember – if customers have been created who have an associated Bill-to customer, then the credit limit of the Bill-to customer is used for the control.
Credit limit value must always be entered in local currency on the customer card.