Credit Limit

Credit Limit is the maximum amount of credit you are willing to offer to a Customer.

A Credit Limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit. From a Customer's perspective, it is the maximum amount of goods or services they can get without paying money upfront.

You can set the Credit Limit in Customer, Customer Group, and in the Company. When a Sales Order or a Sales Invoice is submitted, the Credit Limit will be checked.

The order of precedence for checking Credit Limit is as follows:

  • Credit Limit set in Customer
  • Credit Limit set in Customer Group
  • Credit Limit set in Company

1. How to Set Credit Limit

  1. Go to: Selling > Sales > Customer > Customer.
  2. Under Credit Limit and Payment Terms section, set the Credit Limit.
  3. If you leave the Credit Limit as the default, i.e., 0, it has no effect.
  4. Save.

    Customer Credit Limit

2. Features

2.1 Credit Controller

You can allow users with a specific role to override the Credit Limit validation and submit a Sales Order or Sales Invoice even when a Customer's Credit Limit is fully utilized.

To set the Credit Controller role:

  1. Go to: Ac