Customer credit terms and limits

Credit terms and limits can be set to help manage customer debt. 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 placing new sales orders is restricted.

Brightpearl has two methods of applying credit limit restrictions depending on whether you wish to apply the control based on the contact's financial records (account balance credit limits) or the order records (order balance credit limits). The restriction imposed is always the prevention of new sales orders being placed. Depending on configuration, quotes or pending orders can still be taken or the restrictions can be overridden.

Credit terms

Credit terms are used on orders and invoices to calculate the due date and over due status.

Credit terms are set as a number of days net or net EOM (end of month). Net will count from the invoice date and net EOM will count from the end of the invoice month. For example, an invoice dated 04/06/2018 with terms of 15 days net will make the due date 19/06/2018 but net EOM would make the due date 15/07/2018.

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".

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

Companies and colleagues

Each customer in the company will need to be given their own credit limit. Brightpearl does not support company level or shared credit limits.

Blank or zero credit limits

A customer can be assigned a zero or blank credit limit. A zero limit will mean the customer is not approved to take any credit and must pay up front. If the customer credit limit is left blank then their credit is limitless!

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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