Implement Credit Limit Checks

YouTube: How to Implement Credit Limit Checks in Sales Orders?

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