Managing Credit Limits with Debtor Management (Credit Invoice)

Managing Credit Limits with Debtor Management (Credit Invoice) in Easy POS

Overview

The Easy POS system now includes a new feature in the Debtor Management (Credit Invoice) function, allowing businesses to enforce credit limits for customers. With this feature activated, the system prevents customers from exceeding their assigned credit limits, ensuring better financial control and reducing potential risks of unpaid debts.

Benefits of Enforcing Credit Limits

• Prevents Credit Overuse – Customers cannot exceed their pre-set credit limits.
• Improves Cash Flow Management – Helps businesses maintain better financial stability.
• Reduces Risk of Non-Payment – Ensures transactions are within manageable credit limits.

How to Set a Credit Limit for Customers

To activate and configure the credit limit feature, follow these steps in the Easy POS Backoffice Web Portal:

Step-by-Step Guide:

1. Log in to the Easy POS Backoffice Web Portal.
2. Click on the Main Menu and select Customer.
3. Navigate to Customer Base.
4. Choose an existing customer or click Add Customer to create a new one.
5. Click Edit Profile for the selected customer.
6. Under Additional Information, tick the box labeled Credit Customer.
7. Enter the allowed credit amount under Credit Customer Information.
8. Tick the checkbox Validated Credit Customer to activate credit limit enforcement.
9. Click Update or Save to apply the changes.

Important Notes

• This configuration must be done through the Backoffice Web Portal.
• The credit limit setting cannot be adjusted using the POS App Customer Registration or Customer Edit functions.
• If you set a $1,000 credit limit but leave 'Validated Credit Customer' OFF, the cashier can allow the customer to exceed the $1,000 limit. In this case, the credit limit serves only as a recording purpose and does not enforce any restrictions.
• To prevent customers from exceeding their credit limit, you must tick the 'Validated Credit Customer' section.

Practical Example

Scenario: A retail store allows customers to purchase items on credit. One of their customers, ABC Traders, has a credit limit of $ 1000.

1. The store owner logs into the Easy POS Backoffice Web Portal.
2. They select ABC Traders from the customer list and enable Credit Customer.
3. They set a credit limit of $ 1000 and mark them as a Validated Credit Customer.
4. Later, when ABC Traders tries to make a purchase exceeding $ 1000, the system automatically restricts the transaction.
5. The customer must either pay an outstanding balance or reduce their purchase amount to proceed.

Related Help Articles

How to enable credit billing

How to Do Fully & Partially Credit Settlement