Credit Limits and Credit Holds

Set Credit Limits for your customers and implement Credit Holds, either automatically when outstanding payments are overdue or manually at any time. User permissions can be set to either receive a notification when customers are on Credit Hold or have exceeded their Credit Limit, or to block any sale authorisation. 


Prerequisites


Table of Contents


Set a Credit Limit for a Customer

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Credit Limits for a customer can be set from the Customer Details screen (Sale -> Customers -> [Selected Customer]). If left blank, customers will not be given a credit limit and can run up any balance. Credit limit applies to all outstanding invoices for a customer, including overdue invoices. 




If a user attempts to authorise a sale order for a customer whose credit limit is exceeded (or if the value of the order would cause the credit limit to be exceeded), a notification will be triggered:




By default, the user can still continue and authorise the sale order if the Credit Limit has been exceeded. Users can be prevented from doing this by disabling the user permission Sale Task – Ignore Mandatory Credit Limit. See Managing Users & Roles for more information about setting user permissions. 




Manual Credit Holds

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Customers can be put on credit hold at any time from the Customer Details screen using the Credit Hold checkbox. (Sale -> Customers -> [Selected Customer]). This is independent from the Automatic Credit Holds feature due to overdue payments, explained below.  


NOTE: Credit Limit cannot be 0.




If a user attempts to authorise a sale order/fulfilment/invoice for a customer whose credit limit is exceeded (or if the value of the order would cause the credit limit to be exceeded), a notification will be triggered:




In DEAR POS, if the user attempts to Add Customer who is on Credit Hold, the same error message is displayed. 


By default, the user can still continue and authorise the sale order if the Credit Limit has been exceeded. Users can be prevented from doing this by disabling the user permission Sale Task – Ignore Mandatory Credit Limit. See Managing Users & Roles for more information about setting user permissions. 




Automatic Credit Holds

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DEAR will place an automatic credit hold on a customer if their credit limit has been exceeded and they have an outstanding overdue payment. By default, the automatic credit hold will be triggered as soon as the payment is overdue according to the customer payment terms, but the user can specify a Credit Hold Grace Period in the General Settings. 


Customers are released from automatic credit hold as soon as payment is made. This is independent from the Manual Credit Hold feature, explained above. 


NOTE: Credit Limit cannot be 0.


Set a Credit Hold Grace Period:

  1. Navigate to Settings -> General Settings -> Organisation
  2. Specify a grace period in number of days. Only integer values can be entered. Depending on the value entered, when the Customer has outstanding amounts overdue  (determined by their payment terms) they will be given this selected grace period to pay the overdue.



If a user attempts to authorise a sale order/fulfilment/invoice for a customer whose credit limit is exceeded (or if the value of the order would cause the credit limit to be exceeded), a notification will be triggered:




In DEAR POS, if the user attempts to Add Customer who is on Credit Hold, the same error message is displayed. 


By default, the user can still continue and authorise the sale order if the Credit Limit has been exceeded. Users can be prevented from doing this by disabling the user permission Sale Task – Ignore Mandatory Credit Limit. See Managing Users & Roles for more information about setting user permissions. 




View Customer Credit Hold Status

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Current Credit Hold Status can be viewed from the Sale -> Customers screen. 


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