Set a Limit to Customer Credit & Commitment

Every business likes to sell – but not at any cost. As much as you want to sell, you want to be sure that your customers will pay. In order to be on the safe side, SAP Business One allows you to define on a company level and customer level a threshold for credit limit and commitment limit. The first refers to the debt of the customer based on the account balance, while the second considered the account balance and the un-deposited checks.

For those who prefer to be even more cautious, the option “Consider Deliveries Balance” adds the deliveries balance into the customer’s balance calculation.

When a user attempts to add a sales document, SAP Business One checks whether by adding that document the credit limit or the commitment limit of the given customer will deviate from the defined limits. If it is, a respective warning message appears.

As each business is different and so is the payment policy, when defining the restrictions, you can decide whether to apply it to sales orders, deliveries, invoices or pick lists.

Available in SAP Business One, version for SAP HANA and SAP Business One. This tip and all the other tips are available on the Tip of the week community page. You can also visit the Implementation Arena for useful implementation tips.