Max. Credit, Commitment Limit
Use these payment terms to define the maximum credit limit for a customer. The term can apply to pending sales and invoices only (“Maximum Credit”) or to the balance of the customer account (“Commitment Limit”). The values you specify here are proposed automatically when you create a customer master record. You may overwrite these value as required.
The Credit Limit determines the actual balance of the Accounts Receivable from the customer.
Remaining Credit = Credit Limit – Account Balance
The Commitment Limit takes un-deposited cheques and postdated cheque deposits into consideration. it is a recommended to set the commitment limit higher than the credit limit.
Remaining Commitment = Commitment Limit – (Account Balance + Un-deposited Cheques + Postdated Cheque Deposits)
Activate this function
From Administration > System Initialization > General Settings > BP Tab
You have to activate the;
Credit Limit, Commitment Limit, A/R Invoice, Delivery, Sales Order
When a customer exceeds his credit limit, we can’t record an invoice associates to his balance, the following system message appears.
I want to block my users’ posting when a customer exceeds his credit limit
To proceed adding the document, user authorization is required when selecting the Yes option to this System Message. To grant users authorization to this confirm this system message, give them Full Authorization to Confirm Credit Line Deviation (credit limit deviation) and Confirm Debt Line Deviation (commitment limit deviation)
Administration > System Initialization > Authorization > General Authorization > choose the user > Sales – A/R >
- Confirm Credit Line Deviation
- Confirm Debit Line Deviation
After you set this authorization, when the user trying to add the sales document with customer’s exceeded balance, he’ll get this message!
In some cases, you define correctly the Credit Limitation setting, and the proper authorizations, but the user still has the ability to post exceeded limit, just a message appear to him warning him about the exceeding, and he can complete his work on normal basis, to solve such a problem, go to Module > Administration > Set up > General > Users, and check out the assigned Authorization Group to this user, according to the mentality of SAP B1, the priority for Authorization Group then the individual authorization,
If you assign him to an Authorization group that has the ability to post exceeded credit limitation, in his authorization window, you will see that, he has Full Authorization to post it even though you define it to not has the ability to do it, as shown below,
In General Settings – BP tab, the checkbox Consider Deliveries Balance influences the calculation of the remaining credit and commitment limit. When selected, the balances of all open deliveries are also taken into account when calculating the remaining credit or commitment limits.
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