How to setup Credit Limit Checking in Sage 100 Accounts Receivable

Example 1

Credit limit: 2000
Aging Category for Credit Limit Exceeded Warning: 30 + Days
Aging Category Balance Exceeds Amount: 900

If you add Customer 01-ABF’s balance in the aging category for over 30 days, over 60 days, over 90 days, and over 120 days, the total is 950.

This amount is greater than the 900 specified in the Balance Exceeds Amount field and the Credit Limit Exceeded warning message will appear.

Example 2

Credit limit: 2000
Aging Category for Credit Limit Exceeded Warning: 60 + Days
Aging Category Balance Exceeds Amount: 900

If you add Customer 01-ABF’s balance in the aging category for over 60 days, over 90 days, and over 120 days, the total is 850.

This amount is greater than the 900 specified in the Balance Exceeds Amount field and the Credit Limit Exceeded warning message will appear.

Example 3

Credit limit: 2000
Aging Category for Credit Limit Exceeded Warning: Current
Aging Category Balance Exceeds Amount: 900

If you add Customer 01-ABF’s balance in the aging category for over 30 days, over 60 days, over 90 days, and over 120 days, the total is 1,950.

This amount is greater than the 900 specified in the Balance Exceeds Amount field and the Credit Limit Exceeded warning message will appear.

Example 4

Credit limit: 2000
Aging Category for Credit Limit Exceeded Warning: 120 + Days
Aging Category Balance Exceeds Amount: .00

If you add Customer 01-ABF’s balance in the aging category for over 120 days, the total is 350.

This amount is greater than the .00 specified in the Balance Exceeds Amount field and the Credit Limit Exceeded warning message box will appear.

Example 5

Credit limit: 2000
Credit Limit Checking: Both
Open Order in Customer’s Credit Limit check box is selected
Aging Category for Credit Limit Exceeded Warning: Current
Aging Category Balance Exceeds Amount: 1,950

If you add Customer 01-ABF’s balance in the aging category for current, over 30 days, over 60 days, over 90 days, and over 120 days, the total is 1,950.

This amount is less than the 1,951 specified in the Balance Exceeds Amount field; however, the total cumulative customer balance of 1,950 plus the open order amount of 500 is 2,450.

This exceeds the customer’s credit limit of 2000 and the Credit Limit Exceeded warning message will appear.

Resolution

1. Open Accounts Receivable, Setup, Accounts Receivable Setup Options.
2. Select the Credit tab
3. Click the drop down for Credit Limit Checking and select on of the following options
   • Select Customer’s Credit Limit Only to monitor customer credit limits only. If you select the Include Open Orders in Customer’s Credit Limit check box, the credit limit checking process also includes all open orders for the customer.
   • Select Aging Category Only to use one of the categories in the Aging Category for Credit Limit Exceeded Warning field.
   • Select Both to monitor customer credit limits followed by the aging category check.
   • Select None if you do not want any credit limit checking performed.