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Credit Limits on A/R Balance Only

  • 1.  Credit Limits on A/R Balance Only

    Posted Jun 18, 2021 08:40 AM
    Hello!!

    I have a large Dynamics GP 2018 on premise installation.  We have many customers that give us blanket or scheduled orders for an entire year.  This is causing a lot of credit limit issues because open orders are being included in over credit limit calculations.  We are increasing individual credit on customers significantly to cover these large orders and daily processing.  While a customer might have an average daily balance between $50-100K, we may need to keep their Credit Limit at $1.4 Million just so we can take their blanket or scheduled orders.

    We would like to have the credit limit only be using A/R balances.

    Has anyone done this with their on premise GP?  Any easy way to make this happen?

    Thank you,
    Janet Martinez
    Kaman Automation

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    Janet Martinez
    Director KAI Business Systems & Project Management
    Kaman Distribution Group
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    Academy - Online Interactive Learning from Experts


  • 2.  RE: Credit Limits on A/R Balance Only

    GPUG ALL STAR
    Posted Jul 01, 2021 08:14 AM


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    Jo deRuiter
    🌟 GPUG ALL STAR
    💫Granite Award Winner
    Atlanta Chapter Leader
    Aisling Dynamics Business Solutions
    Business Applications Practice Manager
    jo.deruiter@aislingdynamics.com
    9518674366
    aislingdynamics.com
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    Academy - Online Interactive Learning from Experts


  • 3.  RE: Credit Limits on A/R Balance Only

    TOP CONTRIBUTOR
    Posted Jul 01, 2021 10:48 PM
    It is not possible to exclude the Open Orders from the Credit Limit calculation. The approach in your case is to use SOP Type = BackOrder for these Scheduled/Blanket type Customer POs and transfer directly to an Invoice instead of the normal Order.

    Example: Customer places a PO for 1000 units for year. You open a BackOrder for 1000 units and save in Batch called something like OpenScheduledOrders. When the customer requests the first release of 20 units, you fill Quantity to Invoice = 20 on the BackOrder and Transfer to Invoice 20 where the credit limit will be tested. The 980 are left on the BackOrder for later releases without invoking the Credit Limit test.

    The Credit limit test will be invoked on each Transfer from BackOrder to Invoice. Not when entering the BackOrder.

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    Thaddeus Suter
    Retus, Inc
    HELOTES TX
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    Academy - Online Interactive Learning from Experts


  • 4.  RE: Credit Limits on A/R Balance Only

    TOP CONTRIBUTOR
    Posted Jul 02, 2021 07:52 AM
    I like the back order option. You could even setup a special Back Order ID for those situations and use that to segregate reports and SmartLists. The programming for the credit limit check is embedded and would require a third-party solution or a customization.

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    Mark Wiley
    Dynamics Credentialed Professional
    Senior Solutions Architect
    GraVoc
    Ohio Office
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    Academy - Online Interactive Learning from Experts


  • 5.  RE: Credit Limits on A/R Balance Only

    Posted Jul 06, 2021 08:16 AM
    Thank you Thaddeus & Mark for your suggestions.

    I will test out these options and see if this works!

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    Janet Martinez
    Director KAI Business Systems & Project Management
    Kaman Distribution Group
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    Academy - Online Interactive Learning from Experts


  • 6.  RE: Credit Limits on A/R Balance Only

    Posted Jul 06, 2021 05:15 PM
    Thank you Jo!  I appreciate the information.

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    Janet Martinez
    Director KAI Business Systems & Project Management
    Kaman Distribution Group
    ------------------------------

    Academy - Online Interactive Learning from Experts


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