E1: 42: Credit Checking in Sales (Doc ID 2319760.1)

Credit Checking is an EnterpriseOne tool used to reduce exposure against outstanding accounts receivable balances. Credit checking provides information about a customer’s account. EnterpriseOne compares a customer’s accounts receivable and open orders to the customer’s current credit limit.  Orders can be placed on a credit hold depending upon setup definitions.

Two types of credit checking are provided:

1. Credit Limit– An amount set up in the customer master record is compared to the order total and any outstanding accounts receivable balances. When a customer exceeds their credit limit, their sales orders go on credit hold.
2. Aging – Criteria can be setup that causes a customer’s orders to go on hold based on the age of outstanding accounts receivable and the percentage of receivables in an aging category.

When aging credit checking is active, a credit limit check will be performed in addition to the aging credit check. No distinction is made between an aging credit check or a credit limit credit check when an order is placed on credit hold. The only way to perform a Credit Aging Check without a Credit Limit Check is to leave the credit limit field blank on the customer master but still activate credit checking with aging criteria set in the order hold constants.