Customer credit terms and limits

Credit terms and limits can be set to help manage customer debt. They describe how much a customer can buy from you and how quickly they need to pay you.

 Credit terms are used to specify when payment is due. The credit limit is used to control the amount of debt that can be built up before new sales are no longer permitted.

The credit terms can be specified on the customer's "Financial" tab.

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Learn more about account balances and credit limits.

Credit terms

Credit terms are used on orders and invoices to calculate the due date, which in turn is used to calculate whether the invoice is overdue.

Credit terms are set as a number of days "net" or "net EOM" (end of month).

"Net" calculates the due date based on the invoice date, while and "net EOM" calculates the due date based on the end of the invoice month.

For example, an invoice dated 4th June with terms of "15 days net" will have a due date of 19th June, but "15 days net EOM" would have a due date of 15th July (end of invoice month plus 15 days).

Credit limits

New customers will automatically be assigned the credit limit as defined at Settings > Contacts > Contact defaults. To ensure that all new customers are created without approval for buying on credit, set the default credit limit to "0", or leave it blank.

To give a customer credit, enter their approved credit limit directly against their contact record.

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.

Companies and colleagues

The credit limit shown for a contact is their credit limit, not the limit of the company (if they are part of a company).

Each customer in the company will need to be given their own credit limit.

Brightpearl does not support company level credit limits, nor shared credit limits.

Blank or zero credit limits

A customer can be assigned a zero or blank credit limit. Both cases mean the customer has limitless credit.

If you wish to restrict a customer's credit to note they must always pay upfront, set a low limit (e.g. "1") or set a pop-up message.

Multi-currency

Credit limits will only be applied in the currency currently assigned to customer. Any balance in another currency will be ignored when credit limits are applied.

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