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.
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
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
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
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
User Action
Options Available
Click Yes → Continue with Sales Order
Click No → Stop the transaction
Key Benefits
Prevents risky credit transactions
Provides real-time credit alerts
Improves financial control
Reduces chances of bad debts
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
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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