You can set that at every issue the program will check whether a customer has exceeded his credit limit. A warning will appear when the customer's outstanding amount plus a newly created invoice exceeds the credit limit set for that customer in the Subjects register | Customer | Financial Details.

Outstanding amounts are determined by adding all outstanding items on the accounts specified in the Administration Panel | Settings | Program Parameters | Financials | General | Customer Account.

There are four options for specifying what to include into outstanding items. This can be set in the Administration Panel | Settings | Program Parameters | Financials | General.

Example

1. Due by Today. The default setting. The credit limit is compared to all overdue outstanding items. Outstanding Items in the message includes all overdue outstanding items, Unposted and Orders will alway be zero, becuase they do not count towards the credit limit.

2. Outstanding Posted Documents.  The credit limit is compared to all due and overdue outstanding items. Outstanding Items in the message includes all due and overdue outstanding items, Unposted and Orders will always be zero, becuase they do not count towards the credit limit.

3. All Unpaid, Posted and Unposted Documents. The credit limit is compared to all due and overdue outstanding items plus unposted issue documents of the types Goods and Collective (see Issue Document Type). Outstanding Items in the message includes all due and overdue items, and Unposted includes all entered, but unposted invoices. 

4. Approved Orders and Outstanding Documents. The credit limit is compared to all due and overdue outstanding items plus unposted issue documents of the types Goods and Collective (like the previous option), but also orders will be added that have a status that includes the order value in the customer's credit limit (see Order Document Types).

Besides specifying a credit limit, you can enable a warning to appear when payment is overdue for a certain number of days. Specify the number of days in the Administration Panel | Settings | Program Parameters | Financials | General | Warning when Overdue Over XXX (days)). This is the number of days from the due date of a document to the date of the issue of a new document.

This check will be performed only if the value set there is higher than 0.

This check is performed at the same time as the limit check. If a customer has not exceeded his limit but is beyond the overdue grace period set here, a warning is shown.

Example

A customer has a credit limit of 700,000. The limit has not been exceeded (that is why the message show that the limit has been exceeded by a negative amount), but the customer has some outstanding items that are older than allowed.

If the customer has a credit limit of -1, each issue will be considered as overdrawing the limit and the related messages will appear plus the note for the subject.