You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register

Credit check exposure

in Receivables & Collections 6 comments

Summary:

Dear team,

I'm reaching out to inquire about a scenario regarding credit limits and tax calculation.

We have a customer account with a $500 credit limit. Currently, there is an outstanding AR invoice balance of $360 ($300 + $60 tax). A new sales
order has been created for $120, and we're surprised to see that no credit hold has been placed.

We expected the system to consider the potential tax on the new sales order ($120 + 20% tax = $144) and recognize that the total outstanding balance ($360 + $144) would exceed the $500 credit limit.

Is it possible that the system is not factoring in the tax that will be calculated in the AR module during the credit check process?

Tagged:

Howdy, Stranger!

Log In

To view full details, sign in.

Register

Don't have an account? Click here to get started!