Why is bank reconciliation important for businesses?

Bank reconciliation helps businesses verify that their internal financial records match their bank statements. Performing reconciliations regularly helps identify missing transactions, duplicate entries, bank fees, and recording errors before they affect financial reporting or cash flow decisions.

How often should businesses reconcile bank accounts?

Businesses should generally reconcile bank accounts at least monthly, when bank statements become available. Organizations with high transaction volumes or frequent cash activity may benefit from daily or weekly reconciliation to identify discrepancies sooner and reduce the workload at month-end.

Can Acumatica automatically match bank transactions?

Yes, Acumatica supports automated transaction matching when bank statement data is imported and the appropriate settings are configured. The system identifies potential matches between bank transactions and records in Acumatica, helping reduce manual work. Unmatched or uncertain transactions still require review to ensure the reconciliation is accurate.

Articles Acumatica ERP ERP Blog Accounts Receivable

How to Set Customer Credit Limits in Acumatica

by Dana Zodrow

3 min read

Jun 23, 2025

One of the most important tasks while dealing with accounts receivable is collecting the amount due from the customer. Acumatica helps with this process by allowing the user to set credit limits for each customer. For example, you’ve sold a deal to a new customer who is also a brand-new business. You want to limit their credit as well as their allowable days past due. This is how to set up those limits:

Set Up Credit Verification Rules for a Customer in Acumatica

In the Receivables module, under the Profiles section, click Customers
Search for the customer in the top right-hand corner with the spyglass or click the + at the top of the page to add a new customer
Under the GENERAL INFO tab within the CREDIT VERIFICATION RULES section, choose from the following:
- Days Past Due
- Limits days past due only
- Credit Limit
- Limits credit limit dollar amount only
- Limit and Days Past Due
- Limits both days and amounts
- Disabled
- No Limits

Choose the necessary limits based on your company’s policies
These can be edited at any time

Applying and Releasing a Credit Hold in Acumatica

Depending on your company’s policy regarding overdue receivables, the customer status can be changed to Credit Hold, which will prevent further invoice creation
Another tool to use in Acumatica in order to manage credit hold status includes
In the Receivables module, under Processes, click on Manage Credit Holds
Choose from the following actions:
Apply Credit Hold
Customers who are past their credit limit and/or days (based on your previous choices) will show up on the screen
Either click the box next to the customer you want to apply a credit hold to and click PROCESS or click PROCESS ALL to place all listed on credit hold
Release Credit Hold
Customers with Credit Hold as their status appear in this list along with their overdue balance, if applicable
Either click the box next to the customer you want to remove from credit hold and click PROCESS or click PROCESS ALL to remove all customers in the list from credit hold

Frequently Asked Questions (FAQ)

Credit limits help businesses manage financial risk by limiting how much customers can owe at one time. Establishing limits can reduce the risk of unpaid invoices, improve cash flow, and help identify customers who may need closer monitoring. Businesses can tailor limits based on customer payment history, creditworthiness, and internal policies.

Businesses should review customer credit limits regularly and whenever significant changes occur, such as repeated late payments, substantial increases in order volume, or changes in a customer's financial condition. High-risk accounts may require more frequent reviews, while customers with consistent payment histories may need less frequent adjustments. Regular reviews help ensure that credit limits remain aligned with current business risks.

Acumatica allows businesses to configure credit verification rules based on customer balances and overdue payments. Depending on the settings, the system can flag customers who exceed their credit limits or fall behind on payments. Businesses can also use credit holds to restrict certain transactions until an account has been reviewed.

Why Unmanaged Customer Credit is a Cash Flow Risk

Setting customer credit limits in Acumatica takes just a few clicks, and it can be the difference between steady cash flow and a growing pile of unpaid invoices. Without clear credit verification rules and credit hold controls, it's easy to keep selling to customers who are already behind on their payments, making it a collections problem for the future.

Acumatica enforces your credit policies automatically, flags overdue accounts, and gives your team control over who can and can't be invoiced. If you're not confident your current system is protecting your cash, it's time to take advantage of enterprise resource planning (ERP) software that can give you that level of confidence. Learn more about Acumatica's accounting tools with the Accounts Receivable module, and contact us to see how it can work for your business.

For more accounting resources, check out the guide to managing accounts receivable in Acumatica or learn how to issue a credit memo in Acumatica.