Controlling the credit available to customers can be a very important part of managing risk within an organization. If you offer credit terms or too much credit to a customer who may not be in the best financial situation, you may have a hard time collecting what they own, and soon their cash problem may become yours. Additionally, you don’t want to offer more or less credit to a customer than they have been approved for as this could cause similar issues. Sage ERP X3 credit limit and credit check capabilities allow you to control this process and avoid these situations. In this article we will provide a brief overview of these features with a particular focus on Sage ERP X3 credit limit control.
Sage ERP X3 Credit Limit and Credit Check Overview
The Sage X3 credit limit and credit check allow you to credit checking, the ability to hold customers that fail a credit check, or bypass the credit check process for certain customers, and more.
In Sage ERP X3, credit limit control is assigned in the Customer screen, on the Management tab (Common Data / BPs / Customer).
In the Credit section, either the Check, No Check or Hold options are available.
- Check means that a credit limit check will be done when during shipment processing.
- No Check means that no credit limit checking will be done.
- Hold means that the customer is on shipment hold and Sage ERP X3 will not allow sales order to be shipped until the hold status is released.
The credit available is determined by the Risk BP. So, if multiple customer records roll up to a parent where the credit limit is controlled, then each of the customers lists the parent customer as their “Risk BP” and the credit is controlled from that record.
While Sage ERP X3 offers basic credit management capabilities such as the ones described above, it does not provide the advanced features or powerful automation required to truly protect your company against taking on too much credit risk. Accounts receivable software for Sage ERP X3 integrates with your system to extend these features for more control and insight into customer credit limits, payment behaviors, accounts receivable, and other important factors that impact cash flow. Learn more about Sage ERP X3 accounts receivable management software here.
Have questions? Contact one of our Sage ERP X3 consultants and they would be happy to answer any questions you have about using the Sage ERP X3 credit limit and credit check capabilities or any other areas of the system.
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