Hi,
How to properly configure so that if the customer exceeds the credit limit, the customer's order will be blocked or a notification will be displayed.

Hello @maurycy.gawlik 

You need to define a limit for the customer. As soon as your open balance reaches the limit, IFS will block customer orders automatically. You can have different credit analysts to follow up the customer balance etc.

You can define allowed overdue amount and days for the customers. Say that if you have 10,000 limit and allowed overdue amount is 1000, then you can have limit up to 11,000

Allowed overdue days is used in case customer has still open limit but one of unpaid invoice is 3 days overdue. If you enter in this field 5 days then you can process invoices, otherwise IFS will block automatically

All blocked orders will be listed in Handle Blocked Customer Orders window. You can release the order by available functions on this window if you need to.

Enter basic data information on Credit Management Basic Data window. Aging buckets are important to see overdues from customers.

You can analyze customers and limits/open limits/turnover/overdue etc on Customer Credit Analysis window. To have a data here, you need to run function Calculate Customer Credit Information. This function will fetch all required information and show the result on this window. You can schedule the function. You/credit analyst can add some notes per customer about the minute notes, phone call etc.

Hope this explanation gives you general idea of the limit.

Thank you for the information. They are clear at this stage. However, I am missing something. I filled in the credit details of PLN 1 and was still able to issue customer orders.

Go to Sales Basic Data and Credit Control Groups

Define a new control group and check the fields. Then it should trigger.

One last thing, to assign the customer with a control group

For this you need to go to order tab and here you have credit control group. Select from LoV the control group that you have created in sales basic data.

Hi, 

Two main steps. 

Review the customer / order tab for the credit control group. The credit control group is very important as this tells IFS when to test for credit.   For example, a bad customer may be tested multiple times or earlier in the process. On the other hand, your best customers may never have a credit test - even though you have a credit limit - you may not want to “ever” block an order due to credit limit.  I tend to believe that every customer should have a credit control group.   If you have no group, credit is not tested for a customer order. 

The next area of set up is the customer / credit tab.  I believe you always should have a credit analysis for example CA, and in larger organizations something like CA1, CA2, CA3 as a generic value rather than something like Mary or Bob. Then enter a credit limit.   From a credit perspective you can “optionally” include days late concept.  

Another thing to review is the customers payment term. A payment term “can” be such that it would ignore credit tests. For example, if you're using the credit card interface, a payment term like VISA would ignore the credit tests as that order would be paid via a credit card. No reason to stop the order due to credit limits. 

Place the order such that the order value is greater than credit limit and release the order. You will see the status go to blocked.  You can see the blocked orders in the blocked orders screen. 

NOTE the current credit limit considers open orders and open invoice balances. I write this because some older systems do not consider open orders within the amount we test for credit. 

Event server can produce any number of more advanced notifications.  

The credit analysis screen is a great place to see current customer credit status. You need to run a credit update before you see records or updated values. 

My bad, I started the reply, then had to attend a call, and by the time this was completed, I see the above replies as well.  You should be OK. 

Hope this helps, 

Best regards, 

Thanks for inputs @Thomas Peterson 

I missed the payment term issue.

Thank you very much everyone. That's exactly what it was about. I have one more question. Where you can set permissions to unlock a customer's over-limit order.

Hi @maurycy.gawlik 

You have the function on RMB of Handle Blocked Customer Orders window. If you cannot use it, then you need to add Customer_Order_API.Start_Release_Blocked function to permission set.

All clear. Thank you for your time and knowledge.

Hi,
Is there an option thanks to which the advance payment will be credited towards the credit limit?