Kindly check if the accounting preference ‘Customer Credit Limit Handling’ is set to ‘Enforce holds’. Only when the option is ‘Enforce holds’ does NetSuite block the entry of a sales order or invoice that puts the customer at or above their credit limit. This method also blocks the addition of items to existing orders for customers at or above their credit limit.
Please look into the following possible reasons:
- If the Standard Sales Order Form is used for the Sales Order and the Terms has not been set, then the system still allows the creation of Sales Order. The logic behind this is, the Sales Order can still be converted to a Cash Sale when billed. Thus, the transaction will not result to Customer Credit. This goes the same way when Standard Sales Order – Cash Sale form is used.
- To make sure Credit Limit will be enforced, user can set Default Sales Order Form to Sales Order- Invoice or any Custom Form derived from it.
- The Credit limit ‘Hold’ option in the customer record should be Auto to enforce the preferences set in Accounting preferences. If ‘Off’, we will still be able to create Sales Orders.
As mentioned above, if the Standard Sales Order Form is used for the Sales Order and the Terms has not been set, then the system still allows the creation of Sales Order. The logic behind this is, the Sales Order can still be converted to a Cash Sale when billed.
When a Sales Order is not meant to be Invoiced and therefore would be expected to be collected upon billing (Cash Sale), Credit Limit has no effect. As a result, even when the Customer already exceeded their Credit Limit, the Sales Order will still be allowed. Cash Sales thus do not trigger the credit limit preferences.
Try setting the Default Sales Order Form to Sales Order- Invoice or any Custom Form derived from it and checking the functionality of the credit limit handling in NetSuite.