Credit Management - Automatic Credit Limits

When creating Automatic credit limits, you can create a set of rules that will take specific criteria into account while quickly and easily applying credit limits. Navigate to Credit and collections > Setup > Risk > Automatic credit limits to begin. 

Automatic Credit Limits

When defining Automatic credit limits, you will use the Scoring groups that were created for Risk scores. 

Definitions for Automatic credit limits

In the above example, Customers that are in the "High" Risk group, with Currency USD, who have been in business less than 5 years will be given a Credit limit of $5,000.

The following Customer meets the criteria specified, and when the Automatic credit limit rules are applied, will be assigned a $5,000 Credit limit. 

Customer FR-004 will have a credit limit of $5,000 automatically applied

Applying Automatic Credit Limits

Automatic credit limits get applied at the Credit limit adjustment journal. Navigate to Credit and collections > Credit limit adjustments. Create a new Credit limit adjustment journal. When the journal has been created, open the Lines and click Generate. From there, select Automatic credit limits to run and apply Automatic credit limits. 

Click Generate to create Automatic credit limits

Once complete, you should have new Credit limit adjustment journal lines that meet the criteria specified in the Automatic credit limit rules you created. 

Automatic credit limit line has been created

When you are ready, you can Post the journal and the new Credit limit will be applied to your Customer.