The
above rule does not apply for Fundraising order lines, which will always
be created without first checking the bill-to customer's credit limit.
This screen establishes the thresholds on the amount of credit provided to an individual using a credit card or for an organization with established credit. The Credit Limit Status options include:
· Stop – This customer has severe credit problems and should be prevented from ordering any more products until this status is changed.
· Warn – This customer has a credit problem. Personify prompts users with a warning message before an order is saved for this customer.
· OK – This customer record has no credit problems. In the event a user tries to place an order for a customer where the order total (or any part) exceeds the customer's credit limit, the order cannot be saved.
When an order line is created – whether it is the first order line in a new order or a new order line in an existing order, the system will first check the bill-to customer’s credit limit. If the bill-to customer’s credit limit has been reached, or if the order line amount when added to the bill-to customer’s existing unpaid balance will reach or exceed the customer’s credit limit, the system will create the order line with an order line status of “P” (proforma). If the user tries to activate the order line, the system present a message, “The bill-to customer’s credit limit has been reached, so the order line cannot be activated without a payment being made.”
The
above rule does not apply for Fundraising order lines, which will always
be created without first checking the bill-to customer's credit limit.
If full payment is made, the order line will be activated. If partial payment is made, the system will evaluate whether the unpaid order line amount when added to the bill-to customer’s existing unpaid balance will reach or exceed the customer’s credit limit. If yes, then the order line will stay as proforma. If the unpaid order line amount when added to the bill-to customer’s existing unpaid balance is less than the bill-to customer’s credit limit, then the system will evaluate the short-pay rule to determine whether the order line should be activated.
To add a credit limit:
1. From
the Demographics task category, click Credit Limits.
The Credit Limits and Credit Balance screen displays on the Demographics
tab, as shown below.
2. Click Add Credit Terms Information.
3. If necessary, change the Org Unit. If you change the org unit, you must have permission to view this information for the org unit.
4. Select the Credit Terms from the drop-down.
5. Select the Credit Status from the drop-down.
6. Enter the Credit Limit. If an order is placed by the customer that exceeds this limit, the order can only be saved as “proforma.”
7. If necessary, select the PO Required checkbox if a purchase order is required for the customer.
8. Select the appropriate Current Credit Balance account and review the current order balance.
9. Enter any Comments.
10. Click Save.