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Place A Customer on Credit Hold

This FAQ will go over the three ways to put customers on credit hold.

Credit Holds

Company Preference

For the first way, go to System > Company Preferences > Sales

Here, the credit hold can get set to apply to all customers if they have unpaid invoices older than the specified amount of days [1]. You can also specify an amount overdue that is acceptable so that small overdue amounts will not lock down a customer, this is called the “Grace Amount” [2]. The third field in credit holds is ‘New Order Overage Grace’ [3]. This allows a customer’s first order over their credit limit to exceed the credit limit by this percentage.

Customer Detail

The last two ways that a customer can be placed on credit hold are found in the detail tab for each customer. Note that to change the user will need to be logged in with an administrator account to edit customer detail information.

2. You can set a credit limit for the customer that will put new orders on credit hold if they owe you over this amount [1]. Releasing an order that would put the customer over their limit will throw a warning–if the amount they will be over their limit by is greater than the grace amount (see above) then only users with permission to release credit holds will be able to override the warning and release the order.

3. The final way to put a credit hold on a customer is by checking the ‘Admin Credit Hold’ checkbox[2]. This will put any new orders for that customer on a credit hold that can only be released by administrators.

Notice the ‘Ignore Credit Holds Until After’ date field [3]. No credit holds will be automatically applied until after this date.

Overriding and Releasing Credit Holds

Credit holds can be overridden on individual orders by going to the Advanced tab and deselecting ‘Credit Hold’. Additionally, the permission to release credit holds can be turned off for any user by going into the security settings. If the customer has been placed on manual credit hold by selecting the ‘Admin Credit Hold’ checkbox in the customer detail, only Administrators will be able to release their credit holds.

If a customer is on a credit hold, and the user does not have permission to release it, an admin’s login can be used to override it through the advanced tab on the order screen.

To enable this, go to System > User Security.

Then open the security settings for a user and enable “Allow overriding customer credit holds”. More information on setting up user permissions can be found here: Creating Users And User Security

Include Released Uncompleted Orders In Credit Limit Calculations

In company preferences there is the option to set whether or not released, uncompleted orders are included in credit limit calculations.

  • This can be set by going to Company Preferences > Sales > Limits

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