ERP User GuideMicrosoft Dynamics 365 for Finance and Operations

Microsoft Dynamics 365 for Finance and Operations

Credit Limits



Different businesses might have their own credit management needs. In Microsoft Dynamics 365 for Finance and Operations you can set up automatic credit checks. Credit management allows you to reduce the credit risk by setting up the credit limit for your customers. If a customer places an order which exceeds his or her credit limit set in Dynamics 365 for Finance and Operations, a customer will see a warning or error message in the shopping cart of the Sana webshop depending on the credit limit setup. A warning message is also shown on all checkout steps.

Warning message

 NOTE

Starting from Sana 9.3.1 a warning message is shown on all checkout steps. It applies to "one step checkout" and "multistep checkout".

Error message

Credit limits must be set up in Dynamics 365 for Finance and Operations and in Sana Admin (Setup > Ordering & checkout > Ordering).

In this article you will learn how to set up credit limits in Dynamics 365 for Finance and Operations.

For information about how to set up credit limits in Sana Admin, see "Credit Limits".

Set up credit limits

Step 1: Set up credit limit checks. In Dynamics 365 for Finance and Operations click: Accounts receivable > Setup > Accounts receivable parameters > Credit rating.

The table below provides the description of the fields required to set up credit limit.

Field Description 
Credit limit type  Specify how credit limits should be calculated. Select one of the following credit limit types:
  • None - There is no requirement for the credit limit check.

    If the Mandatory credit limit check box is selected on the Customers form and None is selected here, the credit limit is checked against the customer balance.

  • Balance - The credit limit is checked against the customer balance.
  • Balance + packing slip or product receipt - The credit limit is checked against the customer balance and deliveries.
  • Balance + All - The credit limit is checked against the customer balance, deliveries, and open orders.
Check credit limits for sales order  Enable this option, if you want the system to check credit limits for sales orders. 
Message when exceeding credit limit  Use this option to determine which message should be shown to a customer in the shopping cart, when the credit limit is exceeded.

The following options are available:

  • Error - When a customer exceeds a credit limit, an error message will be shown in the shopping cart, informing a customer that he or she must pay the outstanding invoices. A customer can also see the amount by which he or she exceeds the credit limit. A customer will not be able to place an order, until he or she pays the invoices, but it is possible to create a sales quotation. 

    If Error is selected, it will override the option selected in the Validate credit limits field in Sana Admin.

  • Warning - When a customer exceeds a credit limit, a warning message will be shown in the shopping cart and on all checkout steps, informing a customer that he or she should either pay the outstanding invoices or full amount online through a payment gateway. The warning massage that is shown in the shopping cart and on all checkout steps and the way customers should pay the order depends on the option that is selected in the Validate credit limits field in Sana Admin. A warning does not block sales order creation unlike error, and a customer can place an order.

Step 2: Set up the credit limit for a customer. Open the Customers form, and on the Credit and collections FastTab enter the Credit limit.

The table below provides the description of the credit limit fields.

Field  Description 
Credit limit  Enter the maximum amount that the customer can have as an outstanding account balance. If you enter zero (0.00), there is no credit limit validation. 
Mandatory credit limit 

Enable this option to require validation of the customer's credit limit before posting a sales order or invoice.

    If None is selected in the Credit limit type field in the Accounts receivable parameters form, and this check box is selected, the credit limit is checked against the customer's balance.

 

Customer Balance

To check the customer balance, select a customer and on the action pane click Balance.

The system compares the value in the Credit limit field on the customer form with the customer balance, and if the customer balance exceeds the credit limit, a warning or error message will be shown.

The amount by which a customer exceeds the credit limit is shown in the shopping cart of a Sana web store in the currency of a customer.

ERP User GuideMicrosoft Dynamics 365 for Finance and Operations