The credit limit process is under control in SAP B1:

In any business, it is essential to safeguard the accounts receivables with the ease of applying credit limits to customers for controlling the sales and purchasing activities. To set-up, a credit limit for sales orders and invoices, access the general settings business partner tab in customer and activity restrictions. Make sure that the credit limit checkbox, the accounts receivable invoice and sales orders checkbox are all marked on.

A sales order that goes beyond a customer’s credit limit is generated. For instance, customer River Limited is chosen here. Drill down into customer business partner master data under payment terms and a credit limit of 1000pounds is set. A sales document that exceeds the credit limit is generated. It is noted that the document has a total of 1800, and on trying to add this document to the system, an alert message from the system appears. It says that the customer has exceeded their credit limit and waits for my response if to continue or cancel. I continue with the exceeds.

When the sales order is copied to an accounts receivable invoice, again the system alerts for the exceeding credit limit. The same case is repeated for accounts receivable invoices to the system copying task. In this case, the flexibility to continue the process is provided. But this option is for the users with the right to override the exceeded limit notifications. Using approvals and authorizations on the role in the organization, the credit limit process is under control in SAP Business One.

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