Credit Control Settings
System behavior related to credit checking varies based on several possible combinations of customer-specific settings defined on the Credit Limit tab in Customer Maintenance:
• The basis of the credit check can include the customer’s total open order balance across all domains, the total AR open item balance, or both.
• Credit checking can be based on a specified maximum currency value or a percentage of the customer’s total sales during the previous one-year period.
If you do not want to perform credit checks, do not select one of the options in the customer record. See
QAD Financials User Guide for information on how to set up credit management features.
• The system determines whether any invoices are overdue more than a specified number of days. If such an invoice is found, the customer is considered over-limit.
• Credit checks can take place before an order is entered or modified, after it is completed, or both. Additional control fields let you set similar parameters for invoices.
• The system can be configured to display a warning message during order entry when a specified percentage of the credit limit is reached or allow new orders but automatically place them on credit hold.
• An additional setting lets you put all orders for the customer on credit hold regardless of calculated credit availability.
The Hold Orders Over Credit Limit field in Sales Order Accounting Control determines whether the Action Status field is updated during credit checking. When that option is set to No, the system displays a warning when the credit check fails, but does not put new orders on hold.