Skip to main content

Overview

What it does:
  • Allows you to set a maximum credit limit for each customer
  • Defines standard payment terms (Net 30, Net 60, down-payment splits, etc.)
  • Automatically calculates due dates and enforces credit checks on new orders
  • Displays outstanding balances and aging for each customer
Prerequisites
  • Customer records exist under Selling > Customer
  • Credit Control and AR accounts are configured under Accounts > Chart of Accounts
  • Payment Terms templates are created under Selling > Setup > Payment Terms

​
1.0 Define Payment Terms Templates

  1. Go to Selling > Setup > Payment Terms > New.
  2. Enter:
    • Template Name (e.g., “Net 30”, “50/50 Split”).
    • Description (optional).
  3. In the Payment Schedule table, click Add Row for each installment:
    • Due After (Days) or Due On (Date).
    • Percentage (%) or Fixed Amount.
  4. Verify that total percentages sum to 100% (or fixed amounts equal invoice total).
  5. Click Save.

​
1.1 Assign Default Payment Terms to Customers

  1. Navigate to Selling > Customer > Customer List.
  2. Click the customer’s Name to open their profile.
  3. Click Actions > Edit.
  4. In Financial Settings, set:
    • Payment Terms Template: choose the default terms for this customer.
    • Credit Limit: enter the maximum open balance you’ll extend (e.g., 50,000).
    • Default Receivable Account: select your AR control account.
  5. Click Save.

​
1.2 Enforce Credit Checks on Sales Orders

  1. When creating a new Sales Order under Selling > Sales Order > New, the system automatically checks:
    • Customer’s Open Balance + New Order Total ≤ Credit Limit.
  2. If the new order exceeds the credit limit, a warning appears: > “Customer credit limit exceeded by [amount]. Please adjust order or request approval.”
  3. You can either:
    • Reduce order quantities or apply a partial upfront payment (using Advance Payment Entry).
    • Request a temporary credit limit increase (via your internal approval workflow).

​
1.3 Monitor Outstanding Balances and Aging

  1. Navigate to Accounts > Reports > Accounts Receivable Aging.
  2. Filter by Customer, Company, and Date Range.
  3. Click Refresh to view each customer’s:
    • Outstanding Amount in current and aging buckets (0–30, 31–60, etc.).
  4. Drill down on any bucket to see specific invoices.

​
1.4 Apply Credit Notes and Allocate Advances

  1. To issue a credit (refund or discount), go to Selling > Credit Note > New.
  2. Link the original invoice, enter the Credit Amount, and click Submit—this reduces the customer’s balance.
  3. To record an advance payment, create a Payment Entry with Payment Type = Receive and apply the amount as an advance.
  4. When a new invoice is generated, click Allocate Advances on the invoice to automatically deduct the advance from the amount due.