When a customer is over the credit limit, the system will restrict the salesperson whenever they try to create an order for that particular customer by prompting for a credit limit override. This option allows the salesperson to create orders for these customers by getting the credit manager to approve the credit limit override for that particular order, for a specific amount.
How do Credit Limit Overrides Work?
This option must be enabled by going to Setup>>Settings>>Credit and Price Overrides (Under the order entry options).
Keep in mind that the system takes into account the credit limit amount and the open credits that the customer has. If the customer is over the credit limit but has open credits available and the invoice total does not exceed the open credits amount, the system won't require a credit limit override.
If the open credits are not enough to cover the invoice total, then, the system will require a credit limit override to complete that transaction. The amount requested must be greater than or equal to the total due including the additional charges.
When adding an item to an order for a customer that is over the credit limit, follow these steps:
Go to Order Entry > Add Order, enter the customer's name and click on Add Items.
Click Add under the Actions column, type the number of boxes requested, and click on Add.
The Over Credit Limit window will appear; the salesperson should provide the information requested in order to send the override request to the credit manager:
How much is needed? (Optional) : This is the amount of money that the salesperson considers is needed to complete the order, keeping in mind that this amount must be enough to cover all the items he will add to the order and the additional charges. This amount is optional and can be changed or entered by the Credit Manager.
Why? (optional): The salesperson can explain the reason why the Credit Manager should approve the credit limit override for the customer.
Once the salesperson is done submitting the request by clicking on the green "Add" button, a notification will be sent to the Credit Managers with the override information.
Right after the override approval is submitted, a confirmation window will pop up.
This request will be valid for the following 30 minutes, which means that the Credit Manager needs to approve the override for the order within this time frame, or otherwise, the sales person will have to resubmit it.
While the override is in the process of being approved, the Salesperson will be able to work on different tabs to process other orders, still, we recommend you to do not close the Override confirmation window until the override is approved or the time elapsed.
After the Override is approved, the sales person will be able to add products to the order as long as the total does not exceed the amount previously requested.
The system will send a real-time notification which will be displayed in the lower right corner of the desktop once a user sends a credit override notification. The notification will look like this:
When clicking on the notification popup you can proceed to its approval (see the steps below).
Once a Credit Manager is notified about the request, these are the steps to follow in order to approve a credit limit override:
Go to the Overrides link, located on the top left-hand corner of the screen.
The system will display a window with a list of pending credit limit overrides and price overrides requests.
The Credit Manager will be able to view all the information about the override request such as customer, credit limit, balance, requested amount, and the reasons for the override request. The amount of the credit limit override can be edited, for doing that, just enter the required amount and hit the enter key to save the value.
To approve or reject the credit limit override, go under the actions column and click on either one of the options.
Once the override is approved, a notification will be sent via email to the salesperson so that they can continue with the order.
If the Automatic Billing is running and encounters an invoice for a customer over the credit limit, the system will not generate this invoice and it will have to be created manually. A notification will be sent to the Salesperson so that they are aware of this situation.
The Mass Allocation process won't process orders for customers that are over the credit limit. These orders will have to be manually allocated.
When a customer who is over the credit limit is placing an order on the E-commerce portal, the system will display a notification to the customer informing that the order can't be processed and an email will be sent to the salesperson so that they can follow up with the customer.
- If a credit manager or Admin is doing the invoice for the customer, once they are done filling the override information, they will be able to continue adding items since no approval is required.
How to be Aware of Overrides Approvals?
If you want to be informed when someone else approves a Credit Override request , you can do it by enabling the setting per user "Notify via email when a Credit Override is approved by somebody else". Read Setup Company Users & User Options to know how to activate this setting.
Who Can Approve a Credit Limit Override?
Credit Limit Override can be approved by the following roles: Administrator and Credit Manager. Remember that Credit Overrides only works for boxes.