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
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.