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Credit Control

Credit control is the list of customers who need a decision: on stop, over their credit limit, overdue, or with orders waiting for credit approval, worst first. It is also where a customer is put on stop or released, always with a reason that is kept in the customer's credit history.

Where to find it

Admin Panel → Receivables:

  • Receivables — the Credit control tab, and the credit terms on each customer

Admin Panel → Sales:

  • Sales — the On credit hold figure, which opens the orders waiting for a credit decision

Who decides

Credit terms are Accounts Receivable's. Only holders of ERP: Receivables or ERP: Finance can set a credit limit, put a customer on stop or lift it, or switch reminders off. Salespeople see the credit position on quotes, orders and customers but cannot change it. Releasing an order held for credit is a separate permission, Approve sales credit, described with sales orders.

The Credit control tab

Each row is a customer with the reasons it is listed, shown as labels: On stop, Over limit, Overdue and Credit Hold. The columns are:

  • Exposure: what the customer owes plus what is ordered and not yet invoiced.
  • Limit and Over by: the credit limit (or none) and how far exposure exceeds it.
  • Overdue: the overdue amount and its oldest age band.
  • Orders on hold: links to each order waiting for a credit decision.
  • Action: Put on stop or Lift the stop.

Click the customer's name to open the customer, with its Credit position, recent documents and Credit history.

Putting a customer on stop

  1. On the Credit control tab press Put on stop on the customer's row (or use the same button on the customer).
  2. Answer Why is ... going on stop? in up to 250 characters. Salespeople see this reason when an order is refused, so write it for them: "Two invoices over 60 days; call accounts before taking orders".
  3. Confirm. The customer is marked On Stop.

While a customer is on stop, no order can be confirmed or sent for credit approval for them, and the Sales console's order editor only lets the salesperson save a draft. Quotes and existing invoices are unaffected. To release the customer, press Lift the stop and give the reason; it is kept in the credit history too.

Setting a credit limit

Open the customer from the Customers tab and set Credit limit under Trading terms, in the customer's currency. 0 means no limit. Confirming an order is refused when what the customer owes, plus open orders and unposted invoices, plus the new order, would pass the limit; the salesperson can then ask for credit approval.

What goes wrong

  • "Putting a customer on stop is for Accounts Receivable": you do not hold ERP: Receivables or ERP: Finance.
  • "You may not change customers of that company": you lack write access to the customer's company.
  • "Nothing needs a decision": no customer is on stop, over its limit, overdue or waiting for credit. Good.
  • A customer looks over limit because of old drafts: unposted invoices and open orders count towards exposure. Post, cancel or close the ones that are finished with.

Worked example

The credit controller opens Credit control on Monday. A trade customer is listed as Over limit and Overdue, with one order on hold. Its oldest invoice is 75 days overdue. They press Put on stop with the reason "Overdue 75 days; payment plan being agreed", which also blocks the held order from being approved. On Thursday the customer pays; they record the receipt, press Lift the stop with "Paid in full 9 Oct", and the salesperson can confirm orders again.

Recommendations

  • Write stop reasons for the salesperson, who will read them when an order is refused.
  • Review the tab daily; it is ordered worst first.
  • Set limits on new customers from the start; 0 means unlimited.
  • Combine with reminders: a stop and a final notice together get attention.