Global Credit Limit Control in Advanced Options

Overview:

The Global Credit Limit Control feature in QNE Software ensures effective credit management by allowing administrators to set limits on customer credit across various transactions. This tool provides flexibility to customize alerts and restrictions, helping businesses maintain healthy cash flow and reduce financial risks

Scenario:

Your business involves managing multiple customers with unique credit arrangements. Global Credit Limit Control ensures seamless credit management by applying tailored limits across transactions, promoting financial stability and operational efficiency.

Solution:

1. Enable Global Credit Limit Control

• Navigate to the Company > Maintenance > Advanced Options

• On the Customers Tab > Setup, then toggle on the Use Global Credit Control toggle. This activates the feature and makes the settings editable.

2. Set Credit Limit

• In the Credit Limit field, specify the maximum credit a customer can have (e.g., PHP 30,000).

• Optionally, use the Valid Until field to set an expiry date for the limit, ensuring periodic reviews of customer credit arrangements.

3. Choose Action When Credit Limit is Exceeded

• From the dropdown menu, select an action:  

• Warning: Alerts the user when the credit limit is exceeded, but allows the transaction to proceed.  
• Block: Prevents the transaction from being saved if the credit limit is exceeded (default option).

4. Apply Credit Limit to Specific Transactions

• Use the Apply in These Transactions dropdown to select the types of transactions to enforce credit limits (Sales Order and Delivery Order are not selected by default).

5. Apply Credit Limit to Specific Transactions

• After making the necessary adjustments, click OK to save your settings and apply the changes across all selected transactions.

Application:

For instance, a wholesale distributor sets a PHP 30,000 global credit limit. When a sales invoice is created that pushes a customer's total receivables over this amount, the system will prompt a warning or block the transaction, depending on the configuration. This proactive alert helps the sales and finance team monitor exposure and follow up with collections before extending more credit.

Prompt when blocked

Using this feature ensures better control of customer credit policies without having to manually monitor outstanding balances across the system.