To check whether a customer has exceeded his credit limit, run the Credit limit check process. A customer will have exceeded his credit limit if the outstanding order sum, increased by the outstanding balance, exceeds the credit limit sum.

After you have executed the process, the Credit limit check check box on the Shipping schedule form will be selected.

When you choose to perform a credit limit check, for example when creating shipping notes, the following checks will be performed:

• Sum of open items. This information is registered in the customer data and is retrieved from the financial application.
• Sum of current orders. Value of sales lines - Value of invoices - Value of periods invoiced (excluding final periods) = Sum of current orders.

The sums are added up and compared with the credit limit set for the customer. Only if the credit limit is higher than the resulting sums (and therefore the credit limit is not exceeded), the following actions are permitted:

• Order entry (the new sales line value is calculated for each line)
• Shipping

Debtor checks are, of course, always performed.

The value of the shipping notes to be created does not affect the calculation, because the 'Current orders' sum also includes the shipping notes created. Once the note has been invoiced, the 'Sum of current orders' will decrease and the 'Sum of open items' will increase.

If shipping is blocked because of the credit limit, this block can be lifted only:

• By the customer paying his invoices (thereby decreasing the sum of open items)
• By specifying in the Shipping module that no credit limit check is required for the shipping lines.

After the process has been executed, the Credit limit check check box on the shipping line will be selected.

See also Credit information.