Customer Credit Limit in Sage 300 ERP

By | September 24, 2013

A Credit Limit is an Account Monitoring Tool and represents an agreement between a company (creditor) and its customers to allow them receive goods, services or money and pay them in the future. Credit limit need not be Sales limit and should be used as a guide to enhancing profitable sales. They can be flexible and revised often.

Sage 300 ERP has a provision which would prompt a Credit Check Approval when you enter a transaction for the customer whose total outstanding balance exceeds the set credit limit.

To enable this setting, navigate to the customer master UI in Sage 300 ERP


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If this option i.e. Total Outstanding Balance exceeds the Credit Limit of is set for a particular customer, then while raising the order it keeps a check that if the order amount would exceed the set credit limit, Order Entry would display a credit check form stating the details of the exceeded credit limit. An authorized user who has the rights to approve the additional amount that is exceeding the customer credit limit requires entering his/her Accpac login credentials in the Approval console. Once this is approved, it would allow raising the order against that customer.


There are instances where it is required to increase/decrease the credit limit set for the customer. We need to make sure that the option Allow Edit of Credit Check is checked in the customer Groups which would make this field (Total Outstanding Balance Exceeds the Credit Limit Of) as editable and allow changing the credit limit set in the Customer Master UI.


Setting the credit limit for the customer has many benefits which include:

  • The Customer knows where they stand and can plan purchases accordingly
  • If the customer needs to purchase above its credit limit, it can pay cash for the new shipments
  • Telling a customer their credit limit in advance reduces the chances of having to tell the customer that a pending order is held and cannot be released.

Thus Sage 300 ERP provides a feature to setup the credit limit for the customers thereby ensuring that the amount of the credit is consistent with the financial capacities of each customer. It is one of the key tools to avoid overdue invoices and bad debts.