Credit Limits and Credit Holds help manage the amount of credit extended to customers. If a customer is behind on payments or reaches a designated credit limit, NetSuite can restrict the entry of new sales transactions on credit. The customer remains restricted from placing new orders until outstanding invoices are paid or the hold is manually lifted.
The credit limit set for a customer does not apply to its subcustomers. Even if the main customer reaches its limit, subcustomers can still initiate sales transactions without restrictions.
To implement credit limits and holds, you must define credit limits in customer records. A credit limit specifies the maximum receivables a customer can accrue. The Customer Credit Limit Handling accounting preference controls the grace period for overdue invoices and how to handle situations where customers exceed their credit limit.
Customer credit limits are affected by the following accounting preferences:
Preference | Description |
|---|
Customer Credit Limit Handling | This preference controls what happens when a sales order or invoice is initiated for a customer who has exceeded their credit limit. The options are as follows: - Ignore – Ignores the credit limit and proceed with the transaction.
- Warn Only – Displays a warning when the new sales order or invoice puts the customer at or above their credit limit. Whoever is entering the transaction must choose whether to continue with the transaction or cancel it.
- Enforce Holds – Blocks the entry of a sales order or invoice that puts a customer at or above their credit limit.
This preference does not affect the entry of opportunities, estimates, or cash sales. |
Customer Credit Limit Includes Orders | Check this box to include orders that are entered but not yet billed when you make credit limit calculations. This ensures that customers do not place orders over their credit limit. Unbilled orders are included whether they are approved or not. Closed and cancelled orders are not included in these calculations. Clear this box to include only billed orders when you make credit limit calculations. |
Days Overdue for Warning/Hold | Enter the number of days after the due date of invoices at which you want to generate a warning or enforce a hold. The value in this field is often referred to as the grace period. |
To set accounting preferences, you need a user role with the Accounting Preferences setup permission.
Credit limit handling preferences apply to all customers unless an administrator enables an override.
To set up or adjust customer credit limits and holds:
- Navigate to Lists > Relationships > Customers.
2. Click Edit next to the relevant customer.
3. Go to the Financial subtab.
4. In the Credit Limit field, enter the maximum credit amount the customer can utilize for purchases.
If the Multiple Currencies feature is enabled, the credit limit entered applies to the customer’s primary currency and represents the total credit across all transaction currencies. If the primary currency is changed, you will need to re-enter the credit limit in the new currency.
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