There is a common practice in some business domain which is the sales only in cash basis, the customer pay amount of money up front and that creates balance to the customer account and only allowed to receive goods which covered of this amount of money. Then settle sales invoices against advanced collections. Such practices is normal in Cement and Ready Mix industries.
Microsoft Dynamics AX manages customer credit limit on customer level, and there are two ways which affect customer balance cash transaction (customer advanced collection) and non cash transaction credit limit.
In this post will walkthrough the required setups to activate customer credit limit.
1 – Accounts receivables parameters, under credit rating, there the following options
The message appears when credit limit is exceeded whether it is just a warning message or error message
The warning message will not stop the transaction
The error message will prevent transaction to be executed
Credit limit type which means the base of calculating credit limit whether it is customer balance, or customer balance + packing slip , or customer balance + all “which consider open orders, and delivered orders in the credit limit”.
2- Customer master information, under credit and collection.
Mandatory credit limit, if it is marked the credit limit control will be applied on this customer, else it will be not be applied.
Recommendation if the common practice of the business is controlling customer credit limit, it is better to mark the check as a default using development.
User Group: Dynamics Arabia
