Credit control

Business NXT performs credit control based on the parameters you have set in the Credit control dialog in the Company information table.

The control is performed during order registration, printing of pick lists, voucher registration and when you register appointment lines that you can transfer to order registration.

Reaction methods

When you enter orders and want to block/ignore pick list printouts, you can choose between warning, blocking or ignoring based on:

Setting Table Description
Credit denied Associate Denies a customer credit, for example following non-fulfilment of payment commitments. If you select Warning or Blocking in the drop-down list for Voucher, Business NXT displays warnings of credit associates with credit suspension during manual voucher registration.
Credit limit Associate The credit amount a customer should normally be allowed.
Overdue invoices Company information The percentage of a customer's credit limit that overdue invoices may constitute and how many days they may be overdue.

You can set that the order balance is not included in the credit limit.

You can stop additional registration of order lines and printing of pick lists for already registered orders which are subject to credit suspension by setting two parameters in the Company information table:

  • Set the option Set credit suspension on open customer orders? in the Accounting processing field.
  • Set Block credit suspension on picking in the Credit control field.

If you had printed a pick list for orders for customers with credit suspension before you set the credit suspension, you can complete and invoice these.

Credit control in the Appointment table

Business NXT can perform credit control when you register a new appointment line with an amount, which is given the status Ready for transfer to orders. The control is performed on the same basis as from orders. You can select in the Credit control dialog in the Company information table so that appointments are not included in the credit limit. The appointment accretion is stored in its own field in the Associate table.

If the appointment line contains values in the Cust. no., Quantity, Product no. and Amount fields, the following settings in the Appointment status dialog are updated:

  • Credit warning / blocked
  • Include in flow balance

Credit warning / blocked is selected if the Ignore credit check is selected in the Appointment tab on the Processing method dialog and the appointment is transferred to order.

Include in flow balance is selected when the appointment contains an amount for a customer with a credit limit. The amount is transferred to the Appointment flow balance field in the Associate table.

The row is transferred to orders even if it has a credit suspension. When the credit control is activated, the appointment status dialog is updated with a check in the fields for Transferred order balance and Suspended. If you have set a block during registration it won’t be possible to add quantities to the order line.

Exceptions to credit control

You can use the column Test result in the Order table to bypass credit limitations. You can unhide that column in the order head, delete the value and do invoicing of an order currently stopped because of a credit limit. You can also use the Ignore test result field in the Order table to bypass the credit limitation.

Orders for customers with credit suspension

If the Order table is joined to, for example, the Associate table with the key Cust. no. -> Cust. no., the Cust. no. field on the order is automatically completed before the Order no. field is given a value. This means that you can't pause before entering the Cust. no. and adjust test result as you can do when the Order table isn't joined. The Test result field is updated automatically so that the order has the correct credit control status. A message about the customer having credit suspension will be displayed in the status bar.

Note:
You can still continue registering order lines since the customer number has already been entered in the row. It’s the connection between the tables that enables this. The customer number is automatically hidden when you link Order to Associate using the Cust. no. key. Even if you unhide the field, it remains inactive, and the usual checks performed when entering the Cust. no. are not executed.

Saving

When saving orders, a message including the customer number, order balance, d/c ledger balance, credit limit and excess amount will be displayed if the customer's credit limit has been exceeded.

Gross order amounts are included in the customer's order amount from when the order is entered and saved until invoicing. After being posted to the accounts, they remain in the customer's d/c ledger balance until payment is received. The d/c ledger balance for the invoice recipient or purchaser is investigated, and the order balance for the last period for which orders are entered is checked.

The credit limit for the customer is converted to the currency defined in the order head before being compared to the total of the order balance and the d/c ledger balance for the customer.

There is no credit control for order type 7 - Advance order.

The credit control dialog isn’t displayed when saving sales orders indirectly, for example in conjunction with reservation of goods inward. The actual credit control is performed, and the result is saved in the Test result field.

Margin control

You can enter the Minimum margin in the Company information table. When you save an order, a message is displayed if the margin is below the defined minimum limit. The message is displayed in the same dialog as any message about exceeding the credit limit.