When defining a credit limit, the maximum permissible credit and/or commitment level for each customer in the master record must be maintained.

The credit limit defaults as the first level from the payment terms.

The most cautious setting is Order Restriction. To use restriction on order level, choose Sales Restriction, Delivery Restriction and Order Restriction, because not every delivery note or invoice is always based on an order. Therefore, include the higher restrictions.

The credit limit setting can be modified at any time. The credit limit includes payments with a future date. This is important if check payments are received with postdated checks. The commitment limit does not consider these types of payments.

This setting is mandatory to use credit limit checks.