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Viewing and Updating a Customer's Credit Limits

Paige Freeman
  • Updated

The Credit Limits page establishes the thresholds on the amount of credit provided to an individual using a credit card or for an organization with established credit. The Credit Limit Status options include:

  • OK - This customer record has no credit problems. In the event a user tries to place an order for a customer where the order total (or any part) exceeds the customer's credit limit, the order cannot be saved.
  • Stop - This customer has severe credit problems and should be prevented from ordering any more products until this status is changed.
  • Warning - This customer has a credit problem. The system prompts users with a warning message before an order is saved for this customer.

A credit limit of $0 indicates no limit. Therefore, the credit limit MUST be greater than $0 in order for the system to enforce the credit status of STOP or WARN.

When an order line is created – whether it is the first order line in a new order or a new order line in an existing order – the system will first check the bill-to customer’s credit limit. If the bill-to customer’s credit limit has been reached or if the order line amount when added to the bill-to customer’s existing unpaid balance will reach or exceed the customer’s credit limit, the system will create the order line with an order line status of "P" (proforma). If the user tries to activate the order line, the system present a message, "The bill-to customer’s credit limit has been reached, so the order line cannot be activated without a payment being made".

The above rule does not apply for Fundraising order lines, which will always be created without first checking the bill-to customer's credit limit.

If full payment is made, the order line will be activated. If partial payment is made, the system will evaluate whether the unpaid order line amount when added to the bill-to customer’s existing unpaid balance will reach or exceed the customer’s credit limit. If yes, then the order line will stay as proforma. If the unpaid order line amount is less than the bill-to customer’s credit limit when added to the bill-to customer’s existing unpaid balance, then the system will evaluate the short-pay rule to determine whether the order line should be activated.

To view a customer's credit limits and terms, select Credit Limits from the Financials tab from within a customer record. The Credit Limits and Terms screen displays, as shown below. From this screen, you can add a customer's credit limits and terms.

Adding Credit Limits and Terms

To add a customer's credit limit and terms:

  1. From the Credit Limits and Terms screen, click New Credit Limit and Terms.  
    The Add Credit Limit and Terms screen displays, as shown below.
  2.  If necessary, change the Org Unit.
    If you change the organization unit, you must have permission to view this information for the organization unit.
  3. Select the Credit Terms from the drop-down.
    Values are populated based on the non-fixed CUS "CREDIT_TERMS" system type.
  4. Select the Credit Status from the drop-down.
    Values are populated based on the fixed CUS "CREDIT_STATUS" system type.
    The value that defaults into this field is based on the Primary Code defined for the CREDIT_STATUS system type.
  5. Enter the Credit Limit.
    If an order is placed by the customer that exceeds this limit, the order can only be saved as "proforma".

A credit limit of $0 indicates no limit. Therefore, the credit limit MUST be greater than $0 in order for the system to enforce the credit status of STOP or WARN.