> For the complete documentation index, see [llms.txt](https://kb.logicerp.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/setups/set-other-account-details/setup-branch-+-party-+-company-wise-credit-limit.md).
# Setup Branch + Party + Company Wise Credit Limit
**YouTube:** [How to Set Up Branch-, Party-, and Brand-Wise Credit Limits for Sales?](https://youtu.be/KlZg2wkRaD8)
## How to Set Up Branch- , Party- , and Brand -Wise Credit Limits for Sales?
In this tutorial, you will learn how to **set and enforce credit limit restrictions** based on **Branch + Party + Company** in Logic ERP.\
This feature helps control **customer outstanding balances and reduces financial risk**.
***
### Open Credit Limit Setup
**To begin:**
* Navigate to the **Setup Module**
* Click on **Set Other Account Details**
* Open **Setup Branch + Party + Company Wise Credit Limit**
This window allows you to define **credit limits for specific customer-company combinations**.
***
### Select Branch, Party & Company
* Choose the **Branch**
* Select the **Customer Account (Party)**
* Select the **Company**
Credit limits will apply only to this **specific combination**.
***
### Define Credit Limit & Variance
Enter the following:
* **Credit Limit** → Maximum allowed outstanding amount
* **Credit Limit Variance (%)** → Extra tolerance allowed beyond the limit
Example:
* Credit Limit = ₹5000
* Variance = 10%
* Allowed limit becomes ₹5,500
**Save & Review**
* Click **Save** to apply settings
* Review details anytime in **Entry Mode**
***
### Enable Credit Limit Validation
To activate restriction:
* Open **Logic Admin**
* Go to **Global Settings**
* Navigate to **Sales Settings 1**
**Configure Credit Limit Check:**
* Enable **Credit Limit Check**
* Choose one option:
* Check in **Next Bill**
* OR Check **Before Saving Current Bill**
* Save changes
* Restart the software
This step is mandatory to enforce validation
***
### Implement in Sales Billing
* Log in to the respective **Branch**
* Open **Sales Bill Window**
* Create a new transaction:
* Select **Customer**
* Select **Company**
* Enter items
**Credit Limit Validation**
**If Within Limit:**
* Bill saves successfully
**If Limit Exceeded:**
* System restricts saving
* Displays message:
* *“Bill amount exceeds allowed credit limit”*
***
### How Credit Limit Control Works
* System checks:
* **Previous Outstanding + Current Bill**
* Compares with:
* **Credit Limit + Variance**
Restricts transaction if threshold is exceeded
***
### Key Benefits of Credit Limit Control
* Prevents excessive customer outstanding
* Reduces financial risk
* Ensures disciplined credit management
* Real-time validation during billing
* Flexible control with variance option
***
### Final Outcome
You have successfully learned how to:
* Set **Branch + Party + Company Wise Credit Limits**
* Configure **Credit Limit Variance**
* Enable **System Validation in Billing**
* Restrict transactions beyond allowed limits
Your system is now optimized for **secure and controlled credit management**.
---
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