The customer credit limit preferences determine the grace period for overdue invoices and what happens when customers exceed their credit limit. Credit limit handling preferences apply to all customers unless an administrator enables an override.
To set the preference for handling credit limits:
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Go to Setup > Accounting > Preferences > Accounting Preferences (Administrator).
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On the General subtab under Accounts Receivable, select your preferred method in the Customer Credit Limit Handling list:
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Ignore – Select this method to allow sales orders and invoices to be entered for a customer that has met or exceeded their credit limit.
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Warn Only – Select this method to generate a warning when a transaction is being entered that puts a customer at or above their credit limit. You can choose to enter or cancel the transaction whenever the warning has appeared.
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Enforce Holds – Select this method to block the entry of a transaction that puts a customer at or above their credit limit.
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In the Days Overdue for Warning/Hold field, enter the number of days overdue at which you want to generate a warning or enforce a hold.
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Click Save.
To permit an override, an administrator must go to Setup > Company > Preferences > General Preferences (Administrator). On the Overriding Preferences subtab, check the Allow Override box next to Customer Credit Limit Handling, and click Save.
Users can then set their individual preference by going to Home > Set Preferences > Transactions and selecting their preferred method in the Customer Credit Limit Handling list.
Credit limit warnings and overdue invoice warnings also appear when you enter order fulfillments and your credit limit handling is set to Warn Only or Enforce Holds.
A credit hold is lifted after the customer has made the appropriate payments. Otherwise, a manager can select Off from the Hold list on the Financial subtab of a customer record for exceptions to your normal A/R and customer credit rules. Then, new transactions can be entered for that customer even when they are over their credit limit or have invoices overdue.
