About Checking Customer Credit During Invoice Entry

Invoice Entry performs a credit check when you enter a document for a customer if one or more credit-check options are selected in the customer record.

The type of information Accounts Receivable includes during a credit check depends on:

  • The credit-check options specified for the customer.
    • If the option Total Outstanding Balance Exceeds the Credit Limit is selected, Accounts Receivable checks the amount of the invoice, retainage invoice, or debit note you are entering against the customer’s outstanding balance and the customer's credit limit.
    • If the option A/R Transactions [ ] Days and Later Exceeds [ ] is selected, Accounts Receivable checks the total amount of Accounts Receivable transactions that exceed the transaction due dates by a specified number of days or more.

      Note: Prepayments, unapplied cash, and receipts are always included when calculating the aged overdue amount.

  • The credit-check options specified for the national account, if the customer is assigned to a national account.
  • The credit-check options selected for Accounts Receivable.

    The outstanding balance can include pending Accounts Receivable transactions, and transactions from Order Entry or third-party applications.

    Note: Pending transactions are not included in the credit check for the national account, regardless of the options you chose for Accounts Receivable.

  • The customer's outstanding balance. If you selected any options to include pending transactions in credit checks (on the A/R Options screen), the outstanding balance may include pending transactions.

If the credit check determines that the outstanding balance exceeds the credit limit, or that the aged transactions exceed the overdue limit, the program displays a Credit Check screen, showing the credit problems.

If the customer belongs to a national account for which a credit-check option is selected and the customer's account exceeds the credit limit or overdue limit stipulated for the national account, credit information for the national account also appears on the Credit Check screen.