Customer Credit Holds

Overview

This document will discuss the differences between Credit Limit (Hard Hold), Soft Hold Credit Limit, and Alert Limit, and what happens when these limits have been reached.

Setting Credit Limits

To set specific credit limits on a customers account go Accounts > Manage Accounts and search for the customer.

Once the customer has been selected and go to the Financial Terms tab.

Under the “Limit & Charges” section you will see three Limit fields:

• Credit Limit - This is where you will specify a strict credit limit, once this limit has been reached there will be an alert and no orders can be processed until the balance has been taken care of or the limit is adjusted.

• Alert Limit - This is where you will specify an alert limit, which will email a specified person(s) of when this limit has been reached.

• Soft Hold - This is where you will specify a soft hold amount that will alert you when you’ve reached that amount, however will still allow you to place an order but it will just automatically go on hold.

Notifications of Credit Limits

Once you’ve set your credit limits you can go one step further and create alerts for these limits under Accounts > Manage Accounts go to the Alerts tab.

Here you can select which holds and who needs to be notified when these holds have been reached.

Just check the hold that needs an alert and select the search box. Here the contacts will appear, from here you can add both internal and external contacts to be notified via email when a limit has been reached.

Credit Holds When Placing Orders

Once you’ve set a credit limit depending on the type you will see these following alerts when placing an order.

Credit Limit (Hard Hold)

In my example below, I have set this account with a $100 credit limit. I am trying to convert a $238 order. When I hit convert I get the following message.

The message is stating the balance of $138 is not sufficient based on my credit limit. When I select Ok, my only option with this order is to save it.

Alert Limit

Now for the next example I placed a $100 alert limit on the account and I have set up to be notified of this via the alerts tab within Manage Accounts.

So when I place an order for over $200, I will get an email notification that this account limit has been reached. The order can be converted and will not be placed on hold. This limit is just simply for reference.

Soft Hold

In the following example, I placed this account with a $100 Soft Hold limit, when I placed an order for over $230 dollars it allowed me to convert, however, I received the following message on the order header. ***ORDER IS ON CREDIT HOLD***

This order will automatically be placed on hold within the Invoicing screen within Accounts Receivable.

Viewing Credit Hold Invoices

Orders for Accounts with a Soft Hold limit value will automatically be placed on credit hold when orders exceed this amount. To view all invoices with these holds go to Accounting > Accounts Receivable > Invoicing and select the Orders On Hold tab

Using the ‘+’ expand the Order Credit Hold to view all invoices that have been placed here due to their soft credit limit was reached.

To release the hold from the order so you can invoice, select/highlight the order you want to release and select the ‘release hold’ button. Next, you will get the following message:

Select Yes and the hold will be removed and the order will be placed in your normal invoicing queue to be processed.