A customer is a person or entity that buys goods from you or your business. You can use credit limits and credit holds to manage the amount of credit you extend to customers. A credit limit defines the maximum amount the customer is allowed to accrue in outstanding receivables. This can be easily done with the help of the standard functionality available in our NetSuite. To use credit limits and holds, you set credit limits on customer records.
To Manage Customer Credit Limits and Holds
- 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.
- In the Hold field, select a credit hold setting from the following options:
- Auto – Credit warnings and blocks are applied according to the customer’s credit limit and the Credit Limit Handling accounting preference.
- On – Places the customer on hold and prevents the customer from purchasing goods on credit regardless of the Credit Limit value and customer balance. This option is sometimes referred to as a manual credit hold.
- Off – Disables credit limits and credit holds for the customer.
- Click Save
To Give Warning to the Customer
- Go to Set Preference.
- Click the Transaction subtab.
- In the Customer Credit Limit Handling there are three options.
- Ignore – Ignores the credit limit and proceed with the transaction.
- Warn Only– Displays a warning when the new sales order or invoice is created by the customer has credit limit. Whoever is entering the transaction must choose whether to continue with the transaction or cancel it.
- Enforce Holds – Blocks the entry of a sales order or invoice that puts a customer at or above their credit limit.
A credit hold is removed after the customer makes the appropriate payments. The Manager can remove a credit hold manually on the customer record