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Information about the Credit Limit feature that is used in Receivables Management and in National Accounts in Microsoft Dynamics GP

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This article introduces the Credit Limit feature that is used in Receivables Management and in National Accounts in Microsoft Dynamics GP.

Applies to:   Microsoft Dynamics GP
Original KB number:   953216

Introduction

The Credit Limit feature is used in Receivables Management and in National Accounts in Microsoft Dynamics GP and in Microsoft Business Solutions - Great Plains. The Credit Limit feature lets you have a specific amount of credit based on the rules that are set up in the Customer Maintenance Options window. After you specify an amount in the Credit Limit area in the Customer Maintenance Options window, you can click the expansion button to set the total balance and the balance for one or more aging periods.

This article describes where the transaction balances come from and what formulas are used.

More information

Microsoft Dynamics GP examines the credit limit by comparing the current open transactions amount plus the entered transaction amounts to the credit limit settings. The credit limit settings are stored in the RM_Customer_MSTR table (RM00101). The current open transactions amount is stored in the RM_Customer_MSTR_SUM table (RM00103). The period balances are stored in the RM_Customer_MSTR_Period_SUM table (RM00104).

You can use the following Boolean expression to examine the credit limit of a specific customer.

('Customer Balance' + CurrentInvoiceDollarAmount {this is for your current document} + 'Unposted Sales Amount' + 'Unposted Other Sales Amount' + 'On Order Amount' - 'Unposted Cash Amount' - 'Unposted Other Cash Amount' - 'Deposits Received') > 'Credit Limit Amount' of table RM_Customer_MSTR

All the unspecified fields are stored in the RM_Customer_MSTR_SUM table. If this expression evaluates to true, the customer is over the credit limit.

Note

National accounts may be used and may be set up to perform combined customer credit limit checks. In this case, the total amount of all child customers is compared to the credit limit amount of the parent customer to see whether the credit limit is exceeded.

The balances that are stored in the RM_Customer_MSTR_SUM table include the following transactions from the Sales series modules:

  • Posted documents and unposted documents in Receivables Management in Microsoft Dynamics GP
  • Posted invoices and unposted invoices in Invoicing in Microsoft Dynamics GP
  • Posted orders, unposted orders, posted invoices, and unposted invoices in Sales Order Processing in Microsoft Dynamics GP

Note

Sometimes, Microsoft Dynamics GP lets a customer exceed the credit limit because the open transactions that are already posted in the system are not considered. This behavior occurs because the information in the summary tables does not represent the information about the actual transactions.

If you run the Reconcile utility for the customers in question, the balances that are stored in the summary tables are corrected. Therefore, the credit limit check works correctly. To do this, follow these steps:

  1. Follow the appropriate step:

    • In Microsoft Dynamics GP 10.0, point to Tools on the Microsoft Dynamics GP menu, point to Utilities, point to Sales, and then click Reconcile.
    • In Microsoft Dynamics GP 9.0 and in Microsoft Business Solutions - Great Plains 8.0, point to Utilities on the Tools menu, point to Sales, and then click Reconcile.

  2. In the Reconcile Receivables Amounts window, click Current Customer Information in the Reconcile area, set the range of customers who should be reconciled in the Range area, and then click Process.

References

For more information, see the topics about how to set up a customer credit limit in Help or in the user guides.