Customer credit: order approval rules with visible exceptions

A credit limit needs an exposure policy

Trade credit allows a sale before payment is received; the system needs to reflect the decision of whoever authorizes it. Before requesting a hold, define what consumes the limit: unpaid invoices, approved unbilled orders, other branches and disputed documents. Decide currency, overdue rules and checkpoints. A received but unidentified payment should not free credit as though it had already been allocated.

Microsoft Dynamics 365 Finance documents rules for overdue balances, account status, limit expiration, order amount and credit used, as well as exclusions. Their effect depends on configured rules and checkpoints. TOTVS Protheus also describes parameters enabling or disabling holds. A number on a customer record is insufficient: ask to test the configuration that actually decides whether an order proceeds.

Worked example: an identified payment changes the review

The screen needs to distinguish “payment awaiting review,” “payment allocated” and “order released.” When the system response is slow, operations checks CR-91 before entering it again. An approval message also does not prove that the warehouse delivered. The collections guide explains balance follow-up; this test decides which new commitment may proceed.

Two salespeople cannot spend the same available credit

Reset the scenario with 1,500 available. Two salespeople simultaneously propose separate 1,200 orders. Both may have seen 1,500 when opening the screen, but that does not authorize both commitments. At confirmation, one can consume 1,200, leaving 300; the second must enter review. Acceptance means maximum exposure of 9,700 with one approved order, rather than 10,900 with two.

The review must also avoid counting one document twice. When 2,500 pending becomes invoiced, remove it from unbilled orders and add it to open invoices: total exposure keeps the same amount. Canceling an unfulfilled pending order may release its commitment under your policy; canceling a screen does not erase a debt from an actual delivery. Review partial deliveries when only some goods reached the customer.

An exception needs scope and expiration

If management decides to fulfill a held order, record the approver, maximum amount and expiration. The exception may be limited to CR-91 without increasing C-17’s general limit. When quantities, currency or terms change, follow the agreed review again. A salesperson must not release their own order when the company requires independent approval.

Define what happens when the ERP or bank has not supplied current information. A cautious demonstration policy may keep an order under review, display the last update and identify the person responsible for resolution. The process owner decides this policy; do not hide it in development. Connecting an ERP requires verifying access, version and which system controls balances.

Accept the process using evidence of each change

1. Normal: an order within available credit and without other restrictions retains its review and approval.
2. Exception: exceeded limits, expired accounts or stale data stop the order with a reason and owner; test each cause separately.
3. Retry: repeating approval or allocating the same payment does not add commitments or reduce debt twice.
4. Change: increasing an authorized order rechecks the total and preserves earlier history.
5. Closing: moving a pending order to an invoice preserves exposure; releasing only canceled quantities retains completed deliveries.

The free worksheet lets you record these cases without connecting real accounts. Replace documents with anonymized data and leave the observed-result column blank until the test runs. To assess a customer portal, start where sales currently assumes a payment or permission has already released an order. An agreed observable rule is more useful than a traffic light whose amount nobody can reconstruct.