# Implement Credit Limit Checks
**YouTube:** [How to Implement Credit Limit Checks in Sales Orders?](https://www.youtube.com/watch?v=9ZdxzLok7kE)
## How to Implement Credit Limit Checks in Sales Orders?
This tutorial explains how to implement the **Credit Limit Check** feature in Sales Orders in Logic ERP. This functionality helps monitor customer credit limits and alerts users when a party exceeds their defined credit balance, ensuring better financial control.
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### **Objective of This Feature**
* Monitor customer credit limits during Sales Order entry
* Prevent over-credit transactions
* Alert users when limits are exceeded
* Improve financial discipline and risk control
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#### Access to **Sales Order Configuration**
* Go to **Sales Order Module**
* Click on **Configuration**
* Select the relevant **Sales Order Configuration**
* Locate and enable the option labeled as:
> **“Implement Credit Limit Checks”**
**Functionality**
* When enabled, the system shows a **warning message** if a party exceeds their credit limit
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### **Set Credit Limit in Account Master**
* Go to **Setup New Account Module**
* Select the required **Party Account**
* Define the **Credit Limit**
**Example**
* Credit Limit Set: **₹20,000**
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### **Create Sales Order**
* Open **Sales Order Window**
* Select the relevant **Party**
**System Alert Behavior**
* If the party’s **current balance exceeds ₹20,000**
* Displays warning message:
* Credit limit exceeded
* Asks whether to continue
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### **User Action**
**Options Available**
* Click **Yes** → Continue with Sales Order
* Click **No** → Stop the transaction
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### **Key Benefits**
* Prevents risky credit transactions
* Provides real-time credit alerts
* Improves financial control
* Reduces chances of bad debts
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### **Best Practice Tips**
* Regularly update customer credit limits
* Monitor outstanding balances before transactions
* Train users to respond carefully to warnings
* Use this feature along with approval workflows if needed
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### **Final Outcome**
* System alerts users when credit limit is exceeded
* Better control over customer credit exposure
* Safer and more informed Sales Order processing
* Improved financial management and decision-making
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