Credit Limits

You must set the Floating Credit field to indicate that the amount entered in the Credit Limit box in the Customer Credit Tab represents the customer's credit limit.

  1. Go to the (LA2) screen and select the [C] Change action code.

  2. In the G/L Location field, press Tab to accept the default location, or enter the G/L location number for which you are setting parameters.

  3. In the Floating Credit field, type Y.

  4. If the Floating Credit field in the (LA2) screen is set to Y, the figure in the credit limit box is the amount of credit currently available to the customer. This figure is adjusted by the order total each time a charge or COD order is ended in Order Entry and each time a credit or payment is posted in the Accounts Receivable window. For this feature to work correctly, you must specify an amount in the Start Limit box in the Customer Credit tab.

  5. If the Floating Credit field in the (LA2) field is set to N, the figure in the Credit limit box in the Customer Credit Tab is the total amount of approved credit. The figure is not adjusted.

Note: The information entered in the Credit Limit field depends on whether you use the floating credit limit option. If you do use the floating credit option, enter the difference between the total amount of approved credit and current A/R balance.

  1. Press Enter until the cursor returns to the Action Code field.