How the Sales Credit Limit Feature Works

To enable this feature, follow these steps:

• Navigate to the Odoo Accounting application.
• Go to Configuration settings.
• Under the Customer Invoice section, enable the Sales Credit Limit feature.

Once enabled, you can specify a default credit limit amount. This setting will apply uniformly to all partners.

If you need to set a custom sales credit limit for a specific customer, follow these steps:

• Access the customer's contact form.
• Go to the Accounting tab.
• Locate the Credit Limit section.
• Enter the desired credit limit for that customer.
  

In this section, you will find:

• Total Receivable – The total amount the customer owes to the company.
• Days Sales Outstanding – A metric indicating how long invoices remain unpaid.
• Partner Limit – The maximum allowable credit limit for the customer.

By default, the credit limit is set to $5,000, but for the partner "Azure," it is set to $6,000.

To test the credit limit functionality, you need to create an invoice for a customer using the Sales module:

• Go to the Sales application.
• Create an invoice for a customer.
• Set the total amount to $5,700.

At this point, two alerts appear at the top of the sales order:

• A notification indicating that the customer has exceeded the credit limit of $5,000.
• A warning showing that the total amount due (including this invoice) is now $5,700.

These alerts appear in the sales quotation. After reviewing them, you can proceed by clicking the Confirm button to approve the quotation.

Once confirmed, you can issue an invoice and close the sales order.

Now, let's create a new quotation for Azure, a customer with a credit limit of $6,000:

If the total amount is within the $6,000 limit, no notifications will appear.

Now edit the sales order and increase the quantity of items in the order.

In this quotation, the total amount is $6,600, and the warning notifications are displayed in the quotation. These warnings are triggered only when the sales credit limit for the partner is exceeded.

Under the Reporting menu, you will find the Partner Ledger sub-menu. The Partner Ledger is a useful tool in Odoo Accounting that allows you to trace all financial transactions associated with a given partner, whether it be a customer or a vendor.

This tool provides a complete overview of all transactions, including:

• Invoices
• Payments
• Refunds
• Credits

The Partner Ledger is essential for managing your accounts receivable and payable, ensuring accurate financial records.

By using the Sales Credit Limit feature in Odoo 18, you can control customer credit, reduce financial risks, and maintain accurate accounting records.