Credit limits

A credit limit caps how much a customer may owe you at one time. Once a customer reaches it, a new invoice for them is refused until they pay, so you do not keep selling on account to someone who is falling behind.

Set a customer’s credit limit

1. Go to Sales ‣ Master data ‣ Customers and open the customer.
2. Click Edit and open the Financial tab.
3. Enter the Credit limit in the customer’s currency. Leave it at 0 for no limit.
4. Click Save.

The customer’s page shows the Credit limit beside their Balance and Available credit.

Give new customers a starting limit

1. Go to Settings ‣ Configuration ‣ System settings, then open the Sales tab.
2. Open the Defaults tab and enter the Default credit limit.
3. Click Save changes.

Every customer created from then on starts with that limit, which you can change on the customer. Customers that already exist keep theirs.

How an invoice is checked

Each time you save an invoice, Axon Suite adds it to what the customer already owes in that subsidiary: their posted invoices, less their posted payments. If the total is more than the Credit limit, the invoice is not saved.

Example

A builders’ merchant gives a contractor a credit limit of 20,000. The contractor has 18,500 of posted invoices and has paid 6,000, so they owe 12,500. A new invoice for 7,000 saves, taking them to 19,500. The next one, for 1,000, is refused until the contractor pays.

The same check runs on invoices raised in the rep app and at the point of sale, before any payment taken with the sale is counted. A customer at their limit is refused there too, even when paying on the spot.

Note

The check counts invoices and payments only. A credit note does not free up credit, and the check is made when the invoice is saved, not when it is posted. The Credit limit check switch in the Sales settings applies to sales orders, not to invoices.

Messages you may meet

Message	What to do
The document takes the customer past their credit limit.	Record the customer’s payment first, or raise their Credit limit, then save the invoice again.