A credit limit is the maximum amount of credit that a financial institution or
other lender will extend to a debtor for a particular line of credit. From an
organization's perspective, it is the maximum amount of credit which a
customer gets on goods purchased.
1. How to set credit limit
- Go to: Selling > Customers > Customer.
- Under Credit Limit and Payment Terms, set the Credit Limit.
- If you leave the Credit Limit as the default, i.e., 0, it has no effect.
- You can tick the 'Bypass credit limit check at Sales Order' checkbox, to allow more credit to customer as good will.
2. Other actions
2.1 Credit Controller
To allow any other role to submit transactions by customers whose credit limit
has expired, go to accounting settings and select the role in Credit Controller.
This Credit Controller would be authorized to accept orders or raise credit limits of customers.
2.2 Credit Limit for Customer Groups
To set credit limit at Customer Group Level go to Selling > Customers > Customer Group. Open the Customer Group and set the Credit Limit.
2.1 Credit Limit for Company
To set credit limit at Company level go to Accounts > Company. Enter an amount in the Credit Limit field.
The priority for checking Credit Limit (High to Low) is as follows:
1. Customer Group
- Payment Entry