Credit Limit and Current Balance in Paradigm
- Credit Limit is the pre-approved credit limit as set here in Paradigm.
- Current Balance is the outstanding balance on the customer's account as per Sage Evolution.
- Mark 'Skip Credit Check' to bypass credit control for this customer.
Calculating Available Balance in Paradigm
CALCULATION
Credit Limit - Current Balance - Total Value of In Progress Sales Orders - Total Value of In Progress Invoices
Example
Customer Credit Limit is R100 000.00 and Customer Current Balance is R46 000.00
Total Value of In Progress Sales Orders is R14 950.00
Total Value of In Progress Invoices is R26 450.00
Result
Credit Limit - Current Balance - Total Value of In Progress Sales Orders - Total Value of In Progress Invoices
R100 000.00 - R46 000.00 - R14 950.00 - R26 450.00 = R12 600.00
Creating a new Sales Order
Based on the above calculation, the customer has an available balance of R12 600.00.
Should a Sales Rep now place a new Sales Order or Invoice for R13 600.00, set the transaction to an IN PROGRESS status and press Save
, they will receive a credit limit validation message prompting for Credit Approval. As a result of this order exceeding the credit limit by R1000.00. Click OK to continue.
NOTE: They will be able to save the Sales Order / Invoice in DRAFT status. An IN PROGRESS status is anything other than Draft, Cancelled, Processed or Posted to Financial.
Capturing a Credit Approval Override for a Sales Order / Invoice
Paradigm allows the user to provide a Credit Approval Override for a particular document, without having to increase the Customer Credit Limit.
- Navigate to the Credit Control tab on the document.
- Set the Credit Override Amount to the total inclusive amount of R13 600.00
- Tick the Credit Approval Override check box.
The Sales Rep will now be able to save the Sales Order in an IN PROGRESS status for the value of R13 600.00 as specified in the Credit Override Amount field. You will notice that the Available Balance is now -R1000.00 as the customer has exceeded their credit limit by R1000.00.
Should the Sales Rep attempt to increase the order to a value that exceeds the amount specified in the Credit Override Amount field, they will receive a validation message. "Sales Order is not approved for that amount."
NOTE: By default all users have the ability to do an override, however this can be limited to authorised users only by using the Paradigm Roles.