1. Equipment Rental
  2. Rental Management
  3. Rental processes
  4. Finance
  5. Accounts receivable

Manage customer credit limits

Managing customer credit limits is important for maintaining financial control and customer relationships. You manage credit limits mainly on the Customer page.

The Customer page includes several credit statuses and limit settings. These settings are used in rental and sales orders.

Before managing credit limits, review the credit and collection parameters. Define how the business should handle customer rentals. Consider the following:

  • Message if a customer exceeds the credit limit: choose from 'error', 'warning', or 'review'.
  • Credit limit checks: choose from 'no warnings', 'based on credit status', or 'based on balance'.
  • Credit status options: select from 'approved', 'request limit', 'request pending', 'pending approval', or 'rejected'.
  • Manual credit limit editing: choose 'yes' or 'no'.


Accounts receivable clerk Accounts receivable clerk Accounts receivable manager Accounts receivable manager Start Start Define the credit and collection on the customer account Define the credit and collection on the customer account Define credit limits for a customer when creating rental or sales orders. The limit can be mandatory and either limited or unlimited. You can also set an expiration date to control the credit period. New rental orders and quotations will use the latest credit limit settings. Existing rental orders must be updated manually if changes are required. Procedure 1. Go to Accounts receivable > Customers > All customers. 2. In the list, click the customer in the selected row. 3. Expand the Credit and collections section. 4. Click Edit in the action pane 5. Select Yes/No in the Mandatory credit limit field. 6. Select Yes/No in the Unlimited credit limit field. 7. In the Credit limit field, enter a number. 8. In the Credit limit expiration date field, enter a date. 9. Click Save. Define the credit Insurance on the customer account Define the credit Insurance on the customer account Set up credit insurance limits and customer statuses. The insured amount, along with effective and expiration dates, defines the insurance coverage. Use credit check statuses to restrict credit or transactions while still allowing actions such as payments or quotations. New rental orders and quotations will apply the latest credit insurance settings. Existing orders must be updated manually if changes are needed. Procedure 1. Go to Accounts receivable > Customers > All customers. 2. In the list, find and select the desired record. 3. In the list, click the link in the selected row. 4. On the Action Pane, click General. 5. Click Credit insurance. 6. Click Edit. 7. Select Yes in the Mandatory credit limit field. 8. In the Credit limit field, enter a number. 9. In the Credit check status field, select an option. 10. Expand the Credit limit rules section. 11. Click Add. 12. Select the Active check box. 13. In the Effective field, enter a date. 14. In the Insurance amount field, enter a number. 15. Click Save. Maintain credit management for  the customer Maintain credit management for  the customer Adjust credit limits for a customer or a customer group. You can also update the customer and credit group assignments. Create a temporary credit to override the customer's limit. After the specified end date, the original limit is restored. Procedure 1. Go to Accounts receivable > Customers > All customers. 2. In the list, find and select the desired customer record. 3. On the Action Pane, click Credit management. 4. Click Credit limit adjustments. 5. Click New. 6. In the list, choose either credit limit or temporary credit limit. If you choose credit limit adjustment it will have an expiration date. But, if you choose temporary credit limit it will have a date range ''from'' ''to''. Otherwise, both share the same fields and act in the same way 7. Click Lines. 8. In the list, mark the selected row. 9. In the Customer account field, enter or select a value. 10. In the Customer account field, enter or select a value. 11. Choose customer credit group (If defined previously). If a customer credit group is chosen then credit limit and expiration date on that limit will be filled out automatically 12. In the Expiration date field, enter a date. 13. Click Save. 14. Click Post. End End Is it an existing customer  or a new customer? Is it an existing customer  or a new customer? Performing a credit check on a new customer Performing a credit check on a new customer You can block a new customer from rental or sales transactions until a credit limit is entered. This ensures no transactions occur before the credit check is completed. Procedure 1. Go to Accounts receivable > Customers > All customers. 2. Click New. 3. In the Customer account field, type a value. 4. In the Name field, type a value. 5. In the Customer group field, enter or select a value. 6. Click Save. 7. Expand the Credit and collections section. 8. In the Invoicing and delivery on hold field, select an option. Note: Select ''all'' 9. Click Save. 10. Close the page. Existing customer New customer

Activities

Name Responsible Description

Define the credit and collection on the customer account

Accounts receivable clerk

Define credit limits for a customer when creating rental or sales orders. The limit can be mandatory and either limited or unlimited. You can also set an expiration date to control the credit period.

New rental orders and quotations will use the latest credit limit settings. Existing rental orders must be updated manually if changes are required.

Define the credit Insurance on the customer account

Accounts receivable clerk

Set up credit insurance limits and customer statuses. The insured amount, along with effective and expiration dates, defines the insurance coverage.

Use credit check statuses to restrict credit or transactions while still allowing actions such as payments or quotations.

New rental orders and quotations will apply the latest credit insurance settings. Existing orders must be updated manually if changes are needed.

Maintain credit management for  the customer

Accounts receivable clerk

Adjust credit limits for a customer or a customer group. You can also update the customer and credit group assignments.

Create a temporary credit to override the customer's limit. After the specified end date, the original limit is restored.

Performing a credit check on a new customer

Accounts receivable manager

You can block a new customer from rental or sales transactions until a credit limit is entered. This ensures no transactions occur before the credit check is completed.

Provide feedback