Customer Credit Limit - related to future orders

LibertyMountain

We have a customer with $10,000 credit limit.
The customer has an open sales order (unshipped) in the system for $8,000 (to be shipped Jan 2010).
The customer has $0 outstanding balance.

Today, the customer places an order for $3,000 (to be shipped immediately). NAV immediately puts the order on credit hold because $3K + $8K > $10K (i.e. NAV fills in "Sales Header"."On Hold" with text, and only our Accounting department can clear the text and release the order to the warehouse).

Does anyone know of a setup option so that the credit limit functionality will not consider the value of future unshipped orders in the calculation? Although I don't know how wise this would be because it could be manipulated very easily by a sales rep.

Here is the situation that brought this to light ... we have just started using the "Sales Header" table to enter orders with future ship dates (I assume this is best practice.) But it is causing this unwanted behavior. (We used to keep future orders in a spreadsheet, and only enter them 1 month prior to the ship date -- but the buyers hated this because demand was invisible...)

Thanks.

AdamRoue

The credit limit is triggered when the order is placed, and in fairness a credit limit is not in reality time based, the second order takes them over the agreed credit limit that the customer has placed in total.

There is no standard solution to your request (although these are only warnings). You would need to modify it, but if you do this you need to consider how and when the future orders are then triggered for credit checking. Although it is a future order you can be purchasing and retaining capcity to meet the need, so you are gearing up for it, then checking it a week prior to dispatch kind of fails in the process if you have already bought everything to do the job!

Basically you will need to modify it to achieve this, but you need to be very careful how you approach this and ensure all scenairos are considered.

Alex_Chow

As Steve said, it won't be an out of the box solution. It requires a little modification.

You would need to modify form 343 the credit check process to check all orders xx days out in advance where xx is a value stored on the sales & receiveables setup.

LibertyMountain

Thank you for your comments. I didn't think there was a way to configure this without a customization.

sneha

I need to customize similar functionality but in my case I need to exclude the future orders only for invoice creation. Not sure how easily can I send the document type identification to the "check credit limit" form and how can I apply the date filters in the CalcCreditLimitLCY function? Please share your thoughts....