Customer Credit Limits and Blocks in Odoo

Steersman Odoo: Credit Limits and Blocks features the following capabilities:

• Establish a Global Grace Period for late invoices
• Configure and Override a Grace Period per Customer Contact
• Allow only Credit Managers to modify or change a customer’s credit limit, override credit blocks, or place customers on manual credit blocks for sale any new or existing sales quotes and on any open delivery orders.
• Automatic credit blocks for:
  • Sales quotes that would exceed a customer’s credit limit if confirmed
  • Customers with overdue invoices that have exceeded the grace period
• Manual Credit blocks on:
  • Any new or existing sales quotes for a customer
  • Open delivery orders for a customer
• Special credit hold filters and optional columns available in the List view to manage customers, sales orders, and delivery orders on credit hold or with credit blocks

Install and Configure Steersman’s Credit Limit Feature

Go to the Apps app and search for ‘Customer Credit Limit’, then click INSTALL

Set a Global Grace Period for Late Invoices

Go to Settings > Sales > Invoicing to set a company credit grace period type and duration for late invoices. If a grace period is set, the system will not consider the invoice as overdue until the grace period has passed. Any changes to the Grace Period type and duration may change the credit hold status of some customers. This grace period has been overridden at the contact level for customers who may have a different grace period.

Grace Period: Represents the number of days or period in which a customer’s invoices can be late without triggering a ‘credit block’.

• Immediate: As soon as at least one invoice for a customer is past due, the customer goes on a credit hold
• Unlimited: Customer does not get placed on a credit hold because of past due invoices
• Days: Customer goes on a credit hold when at least one invoice from them is that many days past due

Configure a Partner’s Credit Limit

• Credit Limit: Configure the partner’s credit limit. Sales orders will be blocked if the order amount results in the Credit Balance being greater than or equal to the credit limit amount.
• Credit Balance: This is a calculated, non-editable field that shows the total credit used by the customer.
  • It is calculated by adding the total balance of all unpaid invoices for a customer + the total balance of all unvoiced Sale orders with open deliveries.
• Credit Grace Period: This field can only be edited by a Credit Manager and can be used to override the default Grace Period for a specific customer.
  • Inherit Default: Use the default grace period configured in the database
  • Immediate: Overrides the default grace period, and the credit hold due to past due invoices is enforced immediately
  • Unlimited: Overrides the default grace period, and the credit hold due to past due invoices is never enforced
  • Days: Overrides the default grace period
• Credit Block on Orders: A Credit Manager can manually place a block on a customer’s sales quotes, preventing them from being confirmed.
• Credit Block on Deliveries: A Credit Manager can manually place a block on a customer’s open delivery orders, preventing them from being validated.
• Credit Hold Since: This is a calculated field based on the date saved of when the customer was put on a credit block (Either manually by a credit manager or automatically)
• Days on Credit Hold over 1 year: This is a calculated field that displays the number of days a customer has been on a credit hold due to late payments within the last year.
• Days on Credit Hold over 2 years: This is a calculated field that displays the number of days a customer has been on a credit hold due to late payments in the last 2 years.

User changes to the credit limit or the grace period are logged in the chatter on the customer contact, recording which user made the change, when, and what they changed from/to. When a customer goes on a credit hold due to past-due invoices (beyond the grace period), this event is also logged in the chatter to record the time it occurred.

Configure Specific Users to Manage Credit Limits

While in Debug Mode, enable the ‘Manage Credit Limit’ permissions for specific users to manage a contact’s credit limit and override credit limit blocks

Automatic Credit Blocks

A customer and their quotes will be placed on an automatic credit block for a number of reasons:

Quote Amount would Exceed the Customer’s Credit Limit

If a quote’s order amount would cause the credit balance to exceed the credit limit if it were to be confirmed and is NOT a prepaid order, Odoo will display a ‘Credit Limit Exceeded’ blocking message on the sale order.

If the user attempts to confirm the quote, they will receive a validation error that can only be overridden by a Credit Manager.

Overdue Invoices

If the customer has overdue invoices late by more than the set ‘grace period’, the parent and all its sub-contact cards will display a message stating ‘Customer is on a credit hold due to late invoices’.

This message will also be displayed on any new or existing quotes awaiting confirmation for the customer.

Having late invoices will prevent confirmation of a sales quote, even if it is a prepaid order. If the user attempts to confirm the quote, they will receive a validation error that can only be overridden by a Credit Manager.

Any open deliveries for the customer will display the ‘Customer on Credit Hold due to late invoices’ message as well.

Any attempts by warehouse users to validate the delivery order will be blocked by a user error, which can only be overridden by a Credit Manager.

Manual Credit Blocks

A customer can be placed on a manual credit block on orders or delivery orders by a Credit Manager if needed.

Toggle a Credit Block on Orders

Enabling the ‘Credit Block on Orders’ option on the customer record will display a ‘This Customer’s Orders are Blocked by Credit Manager’ message and prevent the confirmation of any new or existing sales quotes for the customer.

If the user attempts to confirm the quote, they will receive a validation error that can only be overridden by a Credit Manager.

Toggle a Credit Block on Delivery Orders

Enabling the ‘Credit Block on Deliveries’ option on the customer record will display a ‘This Customer’s Orders are Blocked by Credit Manager’ message on the delivery order and prevent the validation of any open delivery orders for the customer.

Any attempts by warehouse users to validate the delivery order will be blocked by a user error, which can only be overridden by a Credit Manager.

Override a Credit Block on Sales Orders and Delivery Orders

A Credit Manager needs to click OVERRIDE CREDIT BLOCK on the sale order or delivery order.

Then click OK on the Confirmation pop-up message.

Odoo will log a warning message saying ‘Credit Hold Removed (For this SO)’ as well as log a historical record in chatter of who and when the Credit Block was removed.

Use Filters to Find Customers, Sales Orders, and Delivery Orders on Credit Blocks

Steersman offers various types of filters and optional columns in the list view to help identify customers with credit holds and blocks.

Find Customers on a Credit Hold

From the Customer overview, click on Filters, then select one of the available Credit Hold filters:

• Invoice Credit Hold: Will show all customers on a credit hold due to late payments
• Orders Credit Hold: Will show all customers on a manual sale order credit hold placed by a Credit Manager
• Deliveries Credit Hold: Will show all customers on a manual delivery order credit hold placed by a Credit Manager

From the Customer List View, additional optional columns can be enabled to view ‘Days on Credit Hold over 1 year’ and ‘Days on Credit Hold over 2 years’.

Find Sales Orders on a Credit Hold or Block

From the sales order quotation overview, click on Filters, then select one of the available Credit Hold filters:

• Credit Block: Will show all sales quotes with a manual sale order credit block placed by a Credit Manager
• Credit Hold: Will show all sales quotes on credit hold due to late payments

From the Sale Order List View, the ‘Credit’ column indicates which sales orders have customers currently on credit hold.

Find Delivery Orders on a Credit Hold or Block

From the Transfers overview, click on Filters, then select one of the available Credit Hold filters:

• Credit Hold: Will show all delivery orders on a credit hold due to late payments
• No Credit Hold: Will show all delivery orders that are not on a credit hold due to late payments
• Credit Block: Will show all delivery orders with a manual delivery order credit block placed by a Credit Manager
• No Credit Block: Will show all delivery orders that do not have a manual delivery order credit block placed by a Credit Manager

From the Transfers List View, additional optional columns can be enabled to view delivery orders on ‘Credit Hold’ and/or with ‘Credit Block on Deliveries’.