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Set Credit Limits for your customers and implement Credit Holds, either automatically when a credit limit has been breached or manually at any time. User permissions can be set to either receive a notification when customers are on Credit Hold or have exceeded their Credit Limit, or to block any sale authorisation. 


Prerequisites

  • Set up Customers (recommended)
  • Familiarity with Processing a Sale (recommended)
  • Permissions:
    • Users will need the Sales: Customers List & Editing permission to view, set and edit credit limits for a customer
    • Users will need the Sales: Customer – Enable/Disable Credit Hold permission to enable/disable manual credit hold for a customer. 
    • Users will need the Sale Task – Ignore Mandatory Credit Limit permission to make sales for a customer when the credit limit has been reached. 


Table of Contents


Set a Credit Limit for a Customer

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Credit Limits for a customer can be set from the Customer Details screen (Sale → Customers → [Selected Customer]). If left blank, customers will not be given a credit limit and can run up any balance. Credit limit applies to all outstanding invoices for a customer, including overdue invoices. 


If a user attempts to authorise a sale order for a customer whose credit limit is exceeded (or if the value of the order would cause the credit limit to be exceeded), a notification will be triggered warning the user and asking to confirm whether to continue with the sale. 


By default, the user can still continue and authorise the sale order if the Credit Limit has been exceeded. Users can be prevented from doing this by disabling the user permission Sale Task – Ignore Mandatory Credit Limit. See Managing Users & Roles for more information about setting user permissions. 


Manual Credit Holds

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Customers can be put on credit hold at any time from the Customer Details screen using the Credit Hold checkbox. (Sale → Customers → [Selected Customer]). This is independent from the Automatic Credit Holds feature due to overdue payments, explained below.  


User must have Customer - Enable/Disable Credit Hold permission enabled to use this feature.


NOTE: Credit Limit cannot be 0.

If a user attempts to authorise a sale order or sale invoice for a customer on Credit Hold, a notification will be triggered warning the user and asking whether to continue with the sale. 


In DEAR POS, if the user attempts to Add Customer who is on Credit Hold, the same error message is displayed. 


By default, the user can still continue and authorise the sale order if the Credit Limit has been exceeded. Users can be prevented from doing this by disabling the user permission Sale Task – Ignore Mandatory Credit Limit. See Managing Users & Roles for more information about setting user permissions.


Automatic Credit Holds

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DEAR will place an automatic credit hold on a customer if their credit limit has been exceeded or if an overdue payment has exceeded the grace period. By default, the automatic credit hold will be triggered as soon as the credit limit is breached, but the user can specify a Credit Hold Grace Period in the General Settings


Customers are released from automatic credit hold as soon as payment is made. This is independent from the Manual Credit Hold feature, explained above. 


NOTE: Credit Limit cannot be 0.


Set a Credit Hold Grace Period:

  1. Navigate to Settings → General Settings → Organisation
  2. Specify a grace period in number of days. Only positive integer values can be entered. Depending on the value entered, when the Customer has outstanding amounts overdue  (determined by their payment terms) they will be given this selected grace period to pay the overdue. 


NOTE: If Credit Hold Grace Period cannot equal 0. The minimum is 1. 

If a user attempts to authorise a sale order/fulfilment/invoice for a customer on credit hold, a notification will be triggered and the user will be asked to confirm if they would like to continue.

In DEAR POS, if the user attempts to Add Customer who is on Credit Hold, the same error message is displayed. 


By default, the user can still continue and authorise the sale order if the Credit Limit has been exceeded. Users can be prevented from doing this by disabling the user permission Sale Task – Ignore Mandatory Credit Limit. See Managing Users & Roles for more information about setting user permissions. 


View Customer Credit Hold Status

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Current Credit Hold Status can be viewed from the Sale → Customers screen. 



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