Credit Limit for Accounts Receivable

Set a credit limit for each AR account and see who went over it in the AR Aging report.

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Business Value

• Better credit control, with a limit for each corporate customer.
• Overdue or very high AR balances do not go unnoticed.
• Finance teams see the risk at once in AR Aging.
• Every credit limit change is logged for audits.

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Use Cases

• Hotels that give credit to companies or travel agents track their limits.
• Finance teams check customer balances before approving new invoices.
• Auditors review credit control at monthly or yearly closing.
• AR clerks find customers who went over their limit.

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How It Works

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Add Credit Limit to AR Accounts

Where: Back Office → Accounts Receivable → AR Account → Select AR Account A new field:

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Credit Limit

• Number field
• Help text: “Amount in base currency”
• Users with access to AR accounts can always edit it
• Every change is logged in the AR account history:

Credit limit changed from “X” to “Y”.

If there is no credit limit, the account has no limit.

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AR Aging Report Changes

Where: Reports → BO → Receivable → AR Aging

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New parameter: Show Credit Limit

• No (Default)
• Yes

With Yes, the report shows two more columns:

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Credit Limit

• Shows the credit limit set on the AR account
• Blank if the AR account has no credit limit

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Notes

• If the account’s total AR balance is over the credit limit → Notes shows: “Exceeded Credit Limit”