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 provides control based on the contact's financial records - account balance credit limits.
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 4th June with terms of 15 days net will make the due date 19th June, but net EOM would make the due date 15th July (end of invoice month plus 15 days).
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.
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
Also note that 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 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!
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.