Credit Hold
The Credit Hold function of AcctVantage allows you to set parameters that will trigger Credit Hold status for clients.
When a client is on Credit Hold:
- This status will trigger warnings when a user opens the sales master or enters/edits a sales order.
- New A/R charges are allowed for clients who are past due, but still within their credit limit.
- New A/R charges are blocked for clients who are over their credit limit.
- This block can be overridden only by users specifically given that access in User Access Levels.
How to enable or disable the credit hold function
- Navigate to Administration ➤ System Setup and select A/R & A/P from the drop down menu.
- Credit Hold is enabled by entering any value other than 0 in the Days Past Due and Threshold Amount fields.
** The Credit Hold function may be disabled globally by entering 0 for the Days Past Due and Threshold Amount. **
Using the example below, Credit Hold will be triggered for clients who are either 30 days past due or $100.00 over their Credit Limit.
How to modify credit hold settings for individual clients
- Navigate to Sales ➤ Sales Master then find the client record.
- Open the client and go to the Account Info tab. See definitions below.
- Exempt from Credit Hold: Excludes a Client from being placed on Credit Hold regardless of their Days Past Due or amount over their Credit Limit.
- Manual Credit Hold: Places a Client on Credit Hold regardless of their current account status.
- Suppress Credit Hold Dialogs: Allows you to use the Credit Hold function, which may be useful for reporting, but disables the system warnings when opening Client records or processing Sales Orders.
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- Credit Hold Reason: The field label will turn red and the reason will be displayed when the client is on credit hold. A client can be on credit hold for multiple reasons but only one reason is displayed, in the following order of priority:
- Manual Credit Hold
- Over Credit Limit
- Past Due
- Other statuses:
- Exempt from hold (the "exempt" box was checked on the sales master record)
- Hold feature not enabled (either the client is not on credit hold or the credit hold feature is disabled in System Setup)
- Credit Hold Date: The field label will turn red and the date when credit hold became effective will be displayed.
- Average Days to Pay: This field will display average number of days between invoice date and paid-in-full date.
It may be necessary to exempt a specific client (e.g. a client who chronically pays a bit late but is otherwise a good customer.) Likewise, you may have a client who you wish to permanently place on manual credit hold (e.g. a client with a poor payment history.)
Days past due
To determine if a client is "past due", the system compares the Days Past Due threshold (from System Setup) to the actual Days Past Due from all open A/R items.
If any A/R item's Days Past Due is greater than the threshold, credit hold will be triggered. The client will not be removed from credit hold until all qualifying A/R items have been paid.
Over credit limit
To determine if a client is "over credit limit", the system compares the Threshold Amount (from System Setup) to the client's current net A/R balance.
- A/R Balance: The net total of the A/R and Deposit balances will be used to determine credit hold status.
- Credit Limit: Credit hold will be triggered automatically if the client's current net A/R balance is greater than the credit limit.
Override Credit Limit (user permission setting)
To give a User permission to override a Client's Credit Limit, navigate to Administration ➤ User Access Levels and open the User record.
Check the Override Credit Limit setting and save the User record. If the Client is on Credit Hold due to the reason Over Credit Limit, the User will be able to override the Credit Limit and continue processing the order.
