Credit Limit is the maximum amount of credit you are willing to offer to a customer.
You can set the Credit Limit in customer, customer group, and in the company.
When a sales order or a sales invoice is submitted, the credit limit will be validated.
The order of precedence is as follows:
- Credit Limit set in Customer
- Credit Limit set in Customer Group
- Credit Limit set in Company
For specific customers, you can set the credit limit to be considered only for the sales invoices and not for the sales orders. You can do so by ticking 'Bypass credit limit check at Sales Order' checkbox in 'Credit Limit and Payment Terms' section of the customer.
Next: Lead, Opportunity and Quotation Video Tutorial