# 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.
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### 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**
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### 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.
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### 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.
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### 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.
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### 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.
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### 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 |
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### Key Benefits
* Prevents **over-crediting customers**.
* Provides **flexibility** with different validation modes.
* Ensures **better credit control** and reduces financial risk.
