Sales Orders are going on Hold with Credit check hold applied. Overall limit exceeded. Using Default

Sales Order are going on Hold with message - Credit check hold applied. Overall limit exceeded. Using Default credit profile. Is the Party's Credit Limit is overlooked in this case and system taking the Default OU specific Credit Profile.

We are using Credit Management and updating the Credit Limit at party profile level and for this customer we maintained the CL at Party and Orders are less than CL.