Mastering Credit Limit Management in Empress

Guides & Tutorials
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Introduction

In Empress, Credit Limit is a powerful feature that allows you to manage the maximum amount of credit that your business extends to a customer. This guide will guide you through understanding and using Credit Limit in a user-friendly, business-oriented manner.

Introduction to Credit Limit

A Credit Limit is the maximum amount of goods or services your business can provide to a customer on credit. It is a financial tool that helps manage risk and cash flow. In Empress, you can set Credit Limits at various levels - for individual customers, customer groups, or even your entire company.

How to Set a Credit Limit

Here’s how you can set a Credit Limit in Empress:

  1. Click on Selling > Sales > Customer > Customer.
  2. Look for the ‘Credit Limit and Payment Terms’ section.
  3. Type in the Credit Limit you wish to set.
  4. If you leave the Credit Limit as 0, it will have no effect.
  5. Click on ‘Save’.

Key Features of Credit Limit Management

1. Credit Controller Role

Empress allows users with a specific role, known as the Credit Controller, to bypass the Credit Limit validation. This means, if a customer has already reached their Credit Limit, a Credit Controller can still approve and submit a Sales Order or Sales Invoice.

To assign this role:

  1. Click on Accounting > Settings > Accounts Settings.
  2. Type in the role name in the ‘Credit Controller’ field.

2. Bypass Credit Limit Check for Sales Order

For certain customers, you can choose to check the Credit Limit against the outstanding sales invoices, not the sales orders. This can be done by selecting the ‘Bypass credit limit check at Sales Order’ checkbox in the ‘Credit Limit and Payment Terms’ section of the customer’s profile.

3. Credit Limit for Customer Groups

To apply a Credit Limit to an entire customer group:

  1. Go to Selling > Customers > Customer Group.
  2. Open the Customer Group and type in the Credit Limit.

4. Credit Limit for Company

To set a global Credit Limit for your entire company:

  1. Go to Accounting > Masters and Accounts > Company.
  2. Open the Company profile and type in the Credit Limit.

Conclusion

Credit Limit is a robust feature in Empress that helps control the credit exposure of your business to customers. By setting individual, group, and company credit limits, you can effectively manage your financial risk and cash flow. The Credit Controller role and the ability to bypass Credit Limit checks for Sales Orders provide further flexibility and control.

For further assistance, please refer to the Empress Help Center or contact our support team.