Customer Credit Limit in Odoo18

The steps below guide you through understanding and configuring “Customer Credit Limit” in Odoo18. This workflow explains how to enable the credit limit feature, set a specific credit limit for individual customers, and observe how this limit is applied when creating sales orders. This feature helps in managing customer credit exposure and ensuring timely payments.

• Navigate to Invoicing Settings: From the Odoo web application, go to the “Invoicing” module and then to “Settings”.
• Enable Sales Credit Limit: Within the Invoicing settings, scroll down to the “Customer Invoices” section and locate “Sales Credit Limit.” Tick the checkbox to enable this feature, which triggers alerts when creating invoices and sales orders for customers with a total receivable amount exceeding a defined limit.
• Set Default Credit Limit (Optional): While you can set a default credit limit for all customers here, the video focuses on setting individual customer limits.
• Go to Customer Details: Navigate to the “Sales” module, then “Customers,” and select the customer for whom you want to set a credit limit (e.g., “MRF Tyres”).
• Configure Partner Credit Limit: Within the customer’s “Invoicing” tab, locate the “Partner Limit” field under “Credit Limits.” Enter the desired credit limit for this specific customer (e.g., ₹2000). This allows for unique credit limits for different customers.
• Create a Sales Order and Observe Credit Limit: Create a new sales order (quotation) for the customer (MRF Tyres). When you select the customer, the system will display a warning if the total outstanding sales orders and this new document exceed their credit limit.
• Confirm Sales Order and Invoice: Confirm the sales order, then proceed to “Create Invoice”, and confirm the draft invoice to finalize the transaction. Even with the warning, the system allows you to proceed, but the warning serves as an important alert.