Credit Limit

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 organisation's perspective, it is the maximum amount of credit which a customer gets on goods purchased.

To set credit limit go to Customer - Master

Selling > Document > Customer

Figure 1: Credit Limit

Credit Limit

Go to the 'More Info section' and enter the amount in the field Credit Limit.

In case a need arises to allow more credit to the customer as a good-will, the Credit Controller has access to submit order even if credit limit is crossed.

To allow any other role to submit transactions by customers whose credit limit has expired, go to accounting settings and make changes.

In the field Credit Controller, select the role who would be authorized to accept orders or raise credit limits of customers.

Figure 2: Credit Controller

Credit Limit

Save the changes.

Next: Bank Guarantee