Check the possibility of implementing a credit limit

The function to prevent a customer from ordering higher than their credit limit OTGN-203

Requirement

• How does credit limit work?
• How to implement a credit limit for customer

Solution

As per Netsuite, we can implement the credit limit in the customer record. When the customer is in credit hold, the order will not process. But they can process the order using card payment.

How the Credit limit work

We can use credit limits to manage the amount of credit you extend to customers. If a customer is delinquent on payments or reaches a pre-set credit limit, NetSuite will restrict the entry of new sales transactions on credit. The customer is restricted on new orders until they pay the invoices due, or you manually release the hold

How to implement a credit limit for customer

Navigate to Lists > Relationships > Customers > Select the Customer Name

• Credit Limit = 0.00 (or any value as long as it is less than the total balance)

As per the value for the Hold in the customer record, we can restrict the creation of the sales order for the corresponding Customer. We can block the customer from the creation of a new order, also we have an option to show warning only for those.

For the ‘warn only’ case, the warning will show when a new sales order is created for the customer who is on hold, we can choose to enter or cancel the transaction whenever the warning has appeared.

Solution

• Navigate to Setup > Accounting > Accounting Preferences
• In General Tab Look for the fields: Customer Credit Limit Handling = Enforce Holds and Customer Credit Limit Includes Orders checkbox = True
• Navigate to Setup > Company > General Preferences > Overriding Preferences > Customer Credit Limit Handling checkbox = True
• Navigate Setup > Suite Commerce Advanced > Set Up Web Site > Edit Web Site Record > Shopping Tab > Checkout Preferences > Sales Order Type = Standard Sales Order – Invoice

Order will process if the customer is on credit hold:

There are some criteria for this, as below,

• If the Terms are not set in the sales order when the creation of the sales order.
• If the sales order type is selected other than Standard Sales Order – Invoice in the website setup record.
• If the Hold value is other than Auto or On.
• If the credit limit is less than the balance.

When we create an order using the terms there is a message will show in the review page as

Customer is on credit hold.