Sales Order Processing - Credit Management Parameters



Credit Management is an optional feature or sub-system of the AddonSoftware Account Receivable and Order/Invoice Processing modules. When in use, the Credit Management feature allows the credit manager to place restrictions and limits on the granting of credit to customers. A follow-up entry is placed in the Credit Manager’s Review & Release queue any time an order is placed by a customer not meeting these restrictions. Refer to Credit Manager’s Review & Release for more information.


=> To access this task...

Select Credit Management Parameters from Parameters menu.


Credit Management Parameters

Credit Management Parameters


About the Fields


To enable edits to the form select  .


Credit Management Installed? checkbox...

  • Check the box to implement the Credit Management system.

  • Uncheck the box if the Credit Management system will not be used.

When this parameter is checked, and the AddonSoftware Order/Invoice Processing module is in use, the Order/Invoice Processing Credit Management feature is available. If the parameter is not checked, these features will not appear.


In the Credit Password field...

  • Enter a password of up to 6 characters.

When a Credit Password is established, any operator who knows it can release an order for a customer who is over a credit limit or on credit hold. Such an operator may also release an on-hold invoice or place a customer on manual credit hold. If the Credit Password is not known to the operator, the operator may allow an on-hold order to remain on hold or be deleted.


NOTE: When a Credit Password is established, it is recommended that access to the Credit Management Parameters also be password protected or security-level protected (refer to Menu Maintenance in the AddonSoftware Installation Guide).


From the Aging Bucket To Hold dropdown...

  • Select a number from the drop down list as listed below that represents the length of time an invoice can be overdue before a credit hold is invoked.

    • 30 days (2)

    • 60 days (3)

    • 0 days (4)

    • 120 days (5)


Selecting 60 days (3) in this field will indicate that any customer account with an invoice of over 60 days past due is reviewed.


In the Minimum Balance To Hold field...

  • Enter the smallest past due amount that will cause a credit hold to be invoked.

The Minimum Balance Limit To Hold parameter is used to prevent credit holds for very small charges, non-applied credits, etc.


In the Hold All Orders Over This Amt field...

  • Enter the maximum amount of any order before an automatic hold is placed on it.

Any order that is greater than or equal to this amount will automatically be placed on hold, regardless of the customer’s credit status or any other factor.


From the Display Credit in Order Entry? dropdown...

  • Select Automatically (A) from the drop down list to automatically display credit information of a customer whose number is entered in Order Entry.

  • Select On Request (R) from the drop down list for credit information to be displayed only on request.

  • Select Never (N) from the drop down list for the displaying of credit information not to be allowed.

Auto Hold Over Credit Limit? checkbox...

  • Mark the box to automatically apply a credit hold for any customer whose Open Balance plus committed Open Orders is greater than their Credit Limit.

  • Unmark the box for all credit holds to be manually set.

Allow Manual Holds? checkbox...

  • Mark the box to allow for manually applied credit holds.

  • Unmark the box if manually applied credit holds will not be allowed.

Pick Lists For Held Orders? checkbox...

  • Mark the box for a picking list to be produced for each on-hold order.

  • Unmark the box for picking lists not to be printed for on-hold orders.

In either instance, a follow-up entry is placed in the Credit Review and Release queue.


Hold All New Customers? checkbox...

  • Mark the box if all new customers are held for credit approval.

  • Unmark the box if there will not be a credit approval hold.

When this parameter is checked, all new customers (whether entered through Accounts Receivable Customer Maintenance task or Order/Invoice Processing Order Entry) are placed on credit hold until released by the credit manager. This feature allows the credit manager to review each new customer and establish a credit limit before any orders may be shipped.


NOTE: This parameter must be unchecked during installation of the Accounts Receivable module; otherwise, all customers are on credit hold when `live’ processing begins.


When finished making entries to the fields:

  • Click Save button to save changes to Credit Management Parameters.

Closing an unsaved record will issue the prompt:

  • Select [Yes] to save the changes.

  • Select [No] to return to the Credit Management Parameters form.


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