Account balance credit limits prevents making more sales to a customer who has an outstanding financial balance which matches or exceeds their assigned credit limit.
Note: Customer credit limits are for reference only and do not restrict day to day operations such as invoicing. New orders are prevented only when using certain workflows. We recommend you use the customer popup message to prevent users from selling more to customers who are over their limit.
Configuring account balance credit control
To use account balance credit limits, select "Accounts balance" at Settings > Company > Accounting: options.
Allow credit limits to be overridden?
If credit limits are configured to allow balance overrides, it will still be possible to create new orders for a customer who has exceeded their credit limit.
Account balance calculation
The accounts balance is calculated as the sum of unpaid invoices, credits and on account payments.
Credit limit controls
Enforced account balance credit limits will prevent new orders from being created once the account balance has reached the credit limit.
Account balance credit limits are only enforced when configuration does not allow credit limit overrides. When credit limits are permitted to be overridden new orders can be created and processed.
Until the financial account balance has reached the credit limit, new orders can be created. At the point the credit limit is reached the restriction will activate. An order started prior to the account balance reaching the credit limit but which will itself take the balance over the credit limit will not be prevented.
If the user has permission to do so, they can increase the contact credit limit to authorize further orders.