Creating Credit Limits and Account on Hold for a Customer

If you want to create rules for which credit you want to give particular customers you can set up a Credit limit or put an Account on hold.

Credit limit is an amount limit that sets out how much credit you want a customer to have in the customer ledger. Account on hold is a selection, which implies that the customer should not be granted any credit in the customer ledger.

The amount limit is set through the contact card under the Settings tab. Click the Customer button and select the Customer & Supplier Ledger tab in the Settings for (...) window. In the Customer credit field you select the amount that will apply for the specific customer. There are also fields for Credit limits and Accounts on hold in Supplier settings.

Note! If you tick the box for Credit limit the amount will be irrelevant. Account on hold means that the customer will not be granted credit.

By default, Credit limits/Account on hold works in the following way for users that are not super users

The credit limit that is given is checked against the outstanding amount in the customer ledger. Unprocessed orders that are already registered will not be included.

When creating a new sales order, invoicing a sales order or delivering goods, the user will receive a note that the customer has passed the credit limit, or that the customer has their account on hold. It will not be possible for the user to complete the operation.

Access for using Credit limits and Accounts on hold

Credit limit and Account on hold setting are controlled by the Access controls. By applying these, the system administrator can decide whether certain users will be able to override these settings.

Under Sales/Invoicing in Access templates you can find the following access control:

Creating sales orders for customers that have exceeded the credit limit or have their account on hold: With this access control activated it is possible for users to create sales orders, even if the customer has exceeded the credit limit or has their account on hold. The user will be warned that the customer has exceeded the credit limit or has their account on hold, but can still select to create the order.

Note! It is still not possible to deliver the products, or to invoice the order. To be able to make a delivery or invoice, the customer's outstanding amount must be lower than the credit limit. When this is exceeded, you must change the Credit limit, remove the Account on hold selection or reduce the customer ledger in order to make the delivery and to invoice the order.

Specific to single-user installations/super users

If you are named as a Super user in your User profile the option that allows you to create the sales orders will be active by default. You are able to create a sales order despite of Credit limits/Accounts on hold. In a single user installation one user will be the super user. The Credit limits/Accounts on hold functions work differently for single users.

If you want to prevent yourself as a single/super user to create sales orders in the same way as described above you will have to create a separate user that you can then link to an access template.

Tip! You can search for customers with accounts on hold: In contact management, click the Search icon in the toolbar. Click Multiple criteria, and select Customers with accounts on hold from the Extended tab. You can also print a Contact list. In the report selection screen you can select the report to display Customers with accounts on hold from the Extended tab.