Allowed Credit %

YouTube: How to Restrict Customer Credit with Credit % Setting in Sale Bill?

How to Restrict Customer Credit with Credit % Setting in Sale Bill?

In this tutorial, we’ll explore how to configure the "Allowed Credit Percent" field in Logic ERP, which controls the percentage of the total bill value that a customer is permitted to defer as credit during billing. This feature is essential for businesses that want to maintain control over customer credit limits and reduce financial risks.

Configure the Allowed Credit Percent Setting:

• Open the Sale Voucher Configuration.

• Select the relevant Billing Series for which you want to apply the credit control.

• Under the “Other Settings – 1” section, click on “Other Settings”.

• Navigate to the “Defaults – 2” tab.

• Locate the field labeled "Allowed Credit Percent".

• Enter the desired credit limit percentage.

  • Example: Set it to 5%, meaning the customer can take credit up to 5% of the total bill value.

• Save the settings to apply the credit policy.

Implement the Allowed Credit Limit During Billing

• Proceed to the Billing screen and enter the necessary transaction details.

• Choose the Credit Mode for payment.

• Attempt to save the bill.

System Behavior: Credit Limit Enforcement

• Upon saving, the software checks the credit amount.

• If the credit exceeds the defined percentage (e.g., more than 5% of the bill total), an error message appears:

  • Example: If the total bill is ₹2,350.83, a 5% credit limit allows only ₹117.55 on credit.

• The system prevents the bill from being saved until the excess credit amount is settled.

Complete the Transaction Within Allowed Credit Limit

• Adjust the credit amount to match the allowed percentage (e.g., ₹117.55).

• Pay the remaining balance using another payment mode (e.g., Cash).

• Save the bill.

• The bill is successfully saved, as the credit amount is within the permitted limit.

Conclusion

The Allowed Credit Percent feature provides businesses with a smart way to regulate credit transactions. By enforcing a percentage-based limit, it ensures financial discipline while still offering flexibility to customers. It also helps prevent revenue leakage due to excessive or unauthorized credit extensions.