If a credit hold has been placed on an order, the hold needs to be released so that the order can be printed and included in shipping papers as well as shipped and invoiced. This section provides detail on how to release credit holds. If a credit hold has been placed on the order, it must be released by a user with the correct security rights before it can be shipped and invoiced.
Based on the settings in Receivables Options, the credit check can be set to "warning" mode, which will advise the user that the customer's unpaid balance and open orders exceed their credit limit, are past due, or both. The order can still be printed and can be released for use in shipping papers, shipping, and invoicing. In the "prevent" mode, the user is advised that the credit policies have been violated and the order is placed on credit hold. The system does not prevent the entry of the order; however, it prevents the order from being printed. It is excluded from the shipping paper, shipping, and invoicing until the credit hold is released. Orders entered for a customer placed on permanent credit hold in Customer Credit will automatically be placed on credit hold and must be released in Release Credit Hold for the order to be processed.
An order will be placed on credit hold if the customer's unpaid invoices and open orders exceed their established credit limit on the open invoices and are beyond the payment due date plus grace days. The payment due date is determined by the terms assigned to the sales order. Grace days are established by customer and are used to extend the payment due date--grace days are added to a customer in Customer Credit.
Credit Limits can be placed on customers in two places: Customer Credit, or in Customer Quick Maintenance-Credit Limits, where credit limits can be entered across multiple customers.
All of these processes can be used to safeguard against selling to and shipping to customers with an undesirable credit history.
1. When you first enter the Release Credit Hold option a Select An Order window will appear; select a sales order to view and/or release from credit hold by scrolling down the list and pressing enter on the order you need to release. You can also print a list of sales orders on credit hold by selecting the print command option. See the Available Actions links below for information on printing a list of sales orders on hold.
Note: If there are not any sales orders on credit hold or if the credit checking function is not turned on in Receivables Options the message line will display the following message: "No Orders Found on Credit Hold!!! Press Space Bar."
2. A credit hold window will appear and display:
Note: A credit limit of $0.00 means do not check credit. If a customer does not have a credit limit it should be $1.00. Credit limits are set-up in either Sales/Customer, using the Quick Maintenance option for credit limits or Customer Credit.
3. Press Space Bar to continue. After reviewing the information in the credit check window, the details of the order will appear on the screen along with command options allowing you to "Release Hold" or "Exit." If there are more items on the order than will fit on one screen the "Next Page" or "First Page" options will also appear.
Note: F4 will reopen the credit hold window.
Note: As orders are taken off credit hold they will disappear from the selection window. If no orders are found to be on credit hold, the message line displays "No Orders Found on Credit Hold!!! Press Space Bar."
4. If you have selected Release Hold to release the credit hold on the sales order a Select An Option window will appear.
Use the Available Actions link below for more information.
| Available Actions | Printing |
Security Required : Sales - Release Credit Hold
| See Also |