Control Credit for an Organisation

All sales and purchase contracts created for the organisation under credit control are automatically included in the credit control. However, individual contracts can be excluded from credit control if required. For example, contracts unrelated to revenue (such as toll transfers or internal warehouse movements) may not need to be under credit control.

Example: Company A has a sales contract with Organisation B. Organisation B is under credit control and has a line of credit with 1 USD approved credit. When a despatch order is created for the contract, its credit will be automatically rejected, and it cannot be selected for a despatch. However, a prepayment invoice can still be sent to Organisation B. When Organisation B pays the prepayment invoice, the available credit will be increased by the payment amount. Company A can then approve the despatch order and despatch the materials to Organisation B.

Security Note: You need the Allow credit management maintenance security right in the Credit Management user group security rights group for this activity. To create lines of credit, you also need at least one of the Allow the user to create... security rights in the Credit Management user group security rights group.

Activity Steps

  1. Open the Organisation.
  2. Select the Credit Management tab.
  3. Check Use Credit Control.
  4. Create a prepayment, credit account, letter of credit, bank guarantee or parent guarantee.

    The Auto Assign Credit Line and Default Credit Line fields become enabled.

  5. Select whether to Auto Assign Credit Line to despatch orders.
  6. If Auto Assign Credit Line is checked, select the Default Credit Line. Select from the lines of credit set up on the Credit Management tab.

    Note: The default credit line can only be used with contracts that match the Scope of the credit line (Sales or Purchase). For contracts of the other type, new despatch orders will have Ignore Credit Control checked by default. For despatch orders created before this credit management configuration, a Credit Line must be selected manually if Ignore Credit Control is unchecked. See Edit Despatch Order Details.

  7. Select whether to Allow Invoicing on Rejected Status. If checked, invoices can be created for despatch orders with a status in the Allow Invoice Types list.
  8. If Allow Invoicing on Rejected Status is checked, select the Allow Invoice Types. Select from the invoice types defined in the Invoice Types screen.
  9. Click Save.