Credit freeze (SAP Business One)

the Credit freeze in SAP Business One is a control instrument for minimising financial risk in customer management. It is used to monitor the financial resilience of business partners and avoid payment defaults due to over-indebtedness. This function is based on the definition and monitoring of credit limits, which can be customised in the system.

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Credit limit and exposure limit

That Credit limit is a fixed maximum amount up to which a customer may have outstanding receivables. It is defined in the business partner master data, under the tab terms of paymentand can be customised there. In addition to the Credit limit is also used in some configurations Commitment limit which can include additional credit risks (e.g. from orders that have not yet been invoiced) but is not documented in detail in SAP Business One.

System configuration and activation

the Credit limit check is called via the path Administration → System initialisation → General settings → BP (business partner) activated. Here you can define document types for which the system automatically checks the credit limit - for example for Offered, Ordersdeliveries or invoices. If the limit is exceeded, the system displays a Warning message an.

Approval processes and authorisations

To control exceptional cases, SAP Business One Authorisation processes can be defined. For example, credit overruns by certain users can only be authorised after prior approval. This provides additional control when processing sales or purchasing documents, even if the employee is generally authorised to enter them.

Visual representation of the credit overrun

In the document details, SAP Business One offers a visual representation the credit limit utilisation by means of a progress bar. This only appears if the credit limit is active and a value has been entered. If the credit limit is zero and receivables are outstanding at the same time, the progress bar is displayed in red - a clear warning signal.