# Credit Limit Checks
**YouTube:** [How to Globally Set Credit Limit Checks in Sale Bill?](https://youtu.be/spbB68PdDVE)
## How to Globally Set Credit Limit Checks in Sale Bill?
In this tutorial, we will discuss how to configure and use the **Credit Limit Check** option in Logic ERP. This setting allows businesses to monitor and control customer credit limits during billing to avoid over-exposure.
***
### Configure Credit Limit Checks
* Open **Logic Admin**.
* Navigate to **Global Settings**
* **Under the Sale** click to **Sales Settings 1**.
* Locate the option at the bottom labeled as:
> **“Credit Limit Checks”**
* This option provides **three choices**:
* **Credit Limit Check in Next Bill**
* **Credit Limit Check Before Saving Current Bill**
* **Disabled**
***
### Credit Limit Check in Next Bill
* When this option is selected, the **credit limit validation is applied from the next bill onwards**.
* Example:
* Suppose the customer’s credit limit is **₹10,000**.
* You create the **first bill** for ₹22,176 → allowed.
* As soon as proceed to next bill software will prompt: *“Credit Limit Exceeded”*.
* At this point, you can either:
* **Yes → Continue** with the bill.
* **No → Restrict** the transaction.
***
### Credit Limit Check Before Saving Current Bill
* In this setting, the system **validates the credit limit before saving the current bill**.
* Example:
* Customer’s credit limit is **₹10,000**.
* You enter a bill of ₹19,075.
* On saving, the software will prompt: *“Credit Limit Exceeded”*.
* User can decide whether to proceed or cancel.
***
### Credit Limit Check Disabled
* When this option is selected, **no credit limit validations are performed**.
* Even if a limit is defined in the customer’s master record, the software will not restrict or warn against exceeding it.
* Example:
* Customer’s credit limit = **₹10,000**.
* You create a bill of ₹15,000.
* The transaction is saved without any prompt.
***
### Define Customer Credit Limit
To apply credit limit checks, ensure that a limit is defined for each customer:
* Navigate to **Setup New Account** window.
* Select the Customer Account.
* Click on **Other Details**.
* Enter the desired **Credit Limit** (e.g., ₹10,000).
* Save the details.
***
### Example Scenario
| Setting | First Bill | Second Bill | System Response |
| ------------------------------- | ---------- | ----------- | -------------------------------------- |
| Credit Limit Check in Next Bill | Allowed | Prompt | Warns in second bill if limit exceeded |
| Before Saving Current Bill | Prompt | – | Warns immediately on saving bill |
| Disabled | Allowed | Allowed | No warnings or restrictions |
***
### Key Benefits
* Prevents **over-crediting customers**.
* Provides **flexibility** with different validation modes.
* Ensures **better credit control** and reduces financial risk.
---
# Agent Instructions: Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter:
```
GET https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/user-access/logic-global-admin/sale/sale-settings-1/credit-limit-checks.md?ask=
```
The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.