Credit Management - How the Credit Limits Flow Down to Child Customers when Customer Relationships are Created? (Doc ID 2369462.1)

Last updated on APRIL 04, 2023

Applies to:

Goal

How the credit limits flow down to child customers when customer relationships are created?

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If a relationship is created between two customer accounts and there is a set up credit limit for each accounts, when a Sales Order is created in Order Management for one customer account,, will the relationship setup impact the customer limit amount?

Scenario:

3 customers
ABC, EFG & XYZ
XYZ is the parent customer for ABC & EFG

Setup the credit limit at parent customer "XYZ" >>> 5000 Euros
When Sales orders / AR invoices are created against XYZ, ABC, EFG then it should consume the parent customer account credit limit.

Meaning, if the limit is 5000 Euros:

> create sales order against XYZ >>> 2500 euros then available credit limit should show as 2500 euros

> create sales order against ABC >>> 1000 Euros then available credit limit for XYZ should show as 1500 euros

> create sales order against ABC/EFG/XYZ for an amount of 3000 euros it should stop the user from creating the sales order as the available credit limit is already crossed for this group of customer, so there should some payment collection to be made or reduce the order limit for this customer to continue with sales order creation.

Solution

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