Credit limit, overdue and cash-only holds
Some credit bills and sales orders wait for a manager's approval. That is when over the party's credit limit, to a cash-only party, or to a party with overdue bills. Approved, it posts or confirms by itself.
PLANSFrom Growth
Built; not yet tried end to end at a customer.
The problem it solves
- Goods go out on credit to parties who already owe more than you would ever allow.
- A party with a bill unpaid for three months gets another truckload because the salesman did not check.
- The credit limit is a warning that everyone clicks past.
How it works
- Give each party group a credit limit and credit days, such as Retail 15 days and Wholesale 45 days. A new party takes them from its group; change them per party.
- A billing clerk confirms a credit bill or a sales order. Before it goes through, SmartMy Trade checks the party.
- A cash-only party, a bill over the limit, or a bill older than the credit days holds it. The bill stays a draft, and a hold lists the reasons.
- The Trade Managers, or the levels of your Trade hold approval chain, are told. They read the reasons and Approve or Reject, on the web or in the app.
- Approved, the bill posts or the order confirms by itself, and the clerk is told. Rejected, it stays a draft with the reason.
Everything it does
What is checked
- Cash only: a party with zero credit days; a credit bill to it is held
- Credit limit: what the party owes now plus this bill (on an order, plus its confirmed orders not yet billed) over its limit
- Overdue: a bill unpaid longer than the party's credit days plus the days of grace
- Each check that fails adds a line to the hold, such as the amount overdue and since when
- Bills paid now and bills to the cash customer are never held
When it is checked
- On a quick bill on credit, when it is posted, on the web or in the app
- On a quotation, when it is confirmed as a sales order
- A confirmed order changed later, and the invoice made from an order, are not checked again
The hold
- One hold per document and kind (Credit), numbered HOLD/year/number, with the amount, the party, who asked and why
- The bill or order shows a Holds button; Trade > Sales > Orders > Holds lists what waits, To Approve first
- An approval covers the amount approved; a bill that grows past it is held again
- Rejecting needs a reason; the document stays a draft for the clerk to change or cancel
On the party
- Credit Days and Credit Limit on the party, given by its party group when it is made
- Overdue and Oldest Overdue Bill shown on the party form
Who uses it
Billing ClerkMakes the bill or order; sees it is held and why, and is told the decision.
Trade ManagerApproves or rejects holds on the web or in the app.
AccountsKeeps credit limits and credit days of parties up to date.
Trade AdministratorSets the checks and the days of grace, and the party groups.
Where you use it
- Web: Trade > Sales > Orders > Holds; the Holds button on a bill or sales order; Approvals
- Web: Trade > Configuration > General > Settings > Credit Control; Trade > Configuration > Shops and Parties > Party Groups
- The SmartMy Trade app: a bill saved on the phone shows it is held, and managers approve or reject in Holds. The app is built and in testing, not in the app stores yet
What you control
Settings
- Hold Over Credit Limit: on
- Hold When Bills Are Overdue: on
- Days of Grace: 0
- Credit days and credit limit per party group and per party: zero to start with. Zero credit days means cash only; zero limit means no limit
Approvals
- Trade hold: the Trade Managers with no set-up, or levels you add; conditions can tell credit holds from other kinds. Whoever asked may approve at a level they hold unless you turn Requester May Approve off
Notifications
- Request Waits for Your Approval: to the approvers of the next level, in the app inbox and by email, with a to-do
- Hold Decided: to the clerk who asked, approved (gone through) or rejected with the reason, in the app inbox and by email
- Phone notifications are built and not switched on yet
Works with
SmartMy POSA party with credit days may pay later at the counter, and the counter refuses the sale when Trade's credit checks would hold it.
Questions
Does a cash sale ever get held for credit?
No. A bill marked paid now, and a bill to the cash customer, is never held for credit. Only credit bills and sales orders are checked.Why is every credit bill to a new party held?
A party with zero credit days is cash only. Give its party group credit days, or set them on the party, and credit bills go through within its limit.Can a manager approve from the phone?
Yes. Holds in the SmartMy Trade app shows the reasons and the levels, with Approve and Reject. The app is built and in testing, not in the app stores yet.Is a sales order checked again when it is invoiced?
No. The check runs when the order is confirmed. Changes made to a confirmed order, and the invoice from it, are not checked again.Related features
ORDERS, PURCHASE AND CREDITRates below the minimum held for approvalGive each item a minimum rate and each party group a largest discount. A bill or sales order with a line below the minimum, or a discount above the limit, waits for a manager. Approved, it goes through by itself.GST AND APPROVALSApprovals in the appA sale held for credit or rate, a big purchase order or a write-off waits for you on your phone. Open Approvals in the SmartMy Trade app, read why it was held and the amount, and approve or reject with a reason. The bill or order goes through at once, and the person who asked is told.ACROSS SMARTMY TRADEApproval chainsHeld sales, big purchase orders, write-offs and indents go to the right people in order before they go through. With no set-up the Trade Managers approve; you add levels, such as the owner for credit above an amount, without code.BILLING AND STOCKParty ledger and statementEvery party's account in one place: opening balance, each bill, return and payment with a running balance, and the closing balance, for any period. Show it on screen, print a Statement of Account to send, or open it on the phone.ORDERS, PURCHASE AND CREDITPayment reminders and payments dueParties are reminded a few days before a bill falls due, and every week once it is overdue, with a link to the bill. On the other side, Payments Due lists the supplier bills you have to pay.CUSTOMERS, BROKERS AND REPORTSCredit parties pay later at SmartMy POSWith SmartMy POS at the counter and SmartMy Trade in the office, credit parties buy on their account at the till. Trade's credit checks run first, and the sale lands on the party's ledger as an invoice.
See your shop on it.
Tell us what you sell, how many shops and godowns you run and how you bill today. We will set up your items and parties with you and print your first bill.