You can use credit limits and credit holds 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 can 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.
When credit limits are enforced, a credit hold restricts entry of a new sales transaction under the following circumstances:
Credit limit reached – When the customer’s preset credit limit is exceeded, the credit hold is applied automatically. The customer must settle one or more outstanding invoices to reduce the balance due and release the credit hold.
Delinquent payments – A payment is delinquent when a customer’s Overdue Balance has exceeded the grace period in the Days Overdue for Warning/Hold accounting preference.
Credit hold applied manually – The Hold field on the customer record is set to On. NetSuite ignores the assigned credit limit. You are restricted from placing an order for the customer even if the credit limit has not been reached. You must release a manual credit hold to permit the customer to create orders.
- Go to Lists > Relationships > Customers.
- Click Edit next to the customer name.
- Click the Financial subtab.
- In the Credit Limit field, enter the customer’s maximum amount of credit for the purchase of goods or services.