The
Customer Credit Limit and terms are set up through Accounts Receivable - AR
M001.
The Credit Limit and Credit Limit Override fields define the
credit terms applied to the customer for ALL unpaid transactions, not PER
transactions, these fields also control the available credit to be extended to
the customer account.
1. If a trade customer has multiple
sales orders open, the total amount of all sales orders should not exceed the Credit
limit override, or the over-credit limit error message will display.
For
example, if the account already sits at owing $924.00, you cannot charge
another $154.00 as the two amounts combined exceed the $1000 limit.
Checking
the credit limit shows you how much credit limit the account has, as shown
below:
Increasing the
Credit limit will allow the processing of the sale.
2. If the Customer has outstanding
payments, this will also cause the over-credit limit issue, changing the
trading terms to a longer period can fix this to get the sale through but is
not recommended as it is often not reversed and gives the customer a longer
credit period.