Posted by Shawn Dorward
Microsoft Dynamics GP can help manage your customer credit limits and provide prompts, warnings and visual cues to help mitigate over extended customers. This is an optional feature (setup details included below).
Using the customer maintenance window (Cards/Sales/Customer), open the customer and choose the ‘options’ button. This will open the Customer Maintenance Options window.
Note that the customer credit limit can be set to no credit, unlimited, or specific amount.
If ‘No credit’ is selected, users will be prompted every time a transaction is created for this customer. If ‘Unlimited’ is selected, users will NOT be prompted at all. Those are pretty self-explanatory but let’s explore ‘amount’ a little more. If ‘Amount’ is selected, a dollar amount must be keyed into the amount field. What this does is evaluate the transaction against open transactions for the customer. If the new transaction puts (or adds to) the TOTAL open balance for the customer over the credit limit, the user will be warned. Nice!
Let’s take it one step further and say our customer has a credit limit of 35,000. Maybe we also want to be warned if they have not been as current as they should be. We can set this up and extend the credit limit by saying something like ‘Warn me if the customer has more than 5,000 in the 90 day aging bucket’. To do something like this, click on the blue arrow to the right of the credit limit amount to open the ‘Display Credit Limit Warning’ window. What this does is evaluate the transaction against open transactions for the customer. If the new transaction puts (or adds to) the TOTAL open balance for the customer over the credit limit, the user will be warned. Nice!
As I mentioned, these warnings and cues are optional. Visit Tools/Setup/Sales/Receivables and mark the options as needed for your business process.
This change is system wide and can be made at any time. Below are some sample screenshots of the types of warnings users would receive if you leverage this great feature.