Credit Management | Dynamics 365 Business Central

Do you have customers who are always trying to order more and don’t pay their invoices in time? Do you have customers who place large orders and exceed their credit limit? Are you fulfilling the orders, although your policy states that you should not fulfill an order, if the customer exceed their credit limit or has past due invoices?

Dynamics 365 Business Central  offers rudimentary credit management functionality. You can specify a credit limit per customer and will get a warning during order entry that will inform you, if a customer exceeds their credit limit or has past due invoices. The warnings will show up every time the order amount changes. This warning also does not prevent the customer service representative from releasing the order and having this order shipped.

Credit Management assists you in managing your customers’ orders and will prevent orders from being released and shipped when the customer exceeds their credit limit or has past due invoices. If a customer exceeds the credit limit by only a few dollars or has an invoice that is past due for a day, should new orders really be placed on hold until the customer paid their invoices? Credit Management allows you to define tolerances to only prevent orders from being shipped.

You can define a percentage of the credit limit as well as a number of days that invoices have to be past due before orders are placed on hold.

You can define, if a credit limit of “0” means that the customer does not have a credit limit and all orders should go on hold or if that means that the customer has unlimited credit.

When an order is entered, the credit warning will not show up and will not interrupt the order entry. The goal of the design of  Credit Management is that the customer service representative can keep on entering orders and will not have to perform any other steps regardless, if the order will be fulfilled or placed on credit hold. The system will just notify the user that the might be placed on hold, but not prevent the order entry.

Once the customer service representative entered the complete order, the order will be released. During this release process the credit warning will show up. The user can select to go back to the order and make changes. Otherwise, the order will be placed on hold. When the order is placed on hold, a workflow is triggered to alert the credit approver that an order needs approval. Once the order is approved, it will automatically be released and can be processed in shipping.

When invoices are paid or credit limits are changed, it could be that the conditions have changed and that the orders on hold should actually be approved and released. Credit Management can automatically react to paid invoices or changed credit limits. If any orders are on credit hold, those orders can automatically be approved and released, if conditions changed.

 Credit Management is available on AppSource and can be purchased and installed easily through Extension Management in Dynamics 365 Business Central.