---
title: "Credit Policies-Credit Control"
canonical: "https://wiki.soft1.eu/space/SS5EN/12059973/Credit%20Policies-Credit%20Control"
format: markdown
---
Credit controls are essentially the conditions under which there is execution of the credit limits check of the trading parties, during creating Documents. 

- Powerful mechanism to create credit control scenarios involving various calculated indicators and parameters. Control scenarios can be selectively applied to specific categories of Documents and payment methods, and can automatically apply warnings, prohibitions, questions, and approval procedures when Documents are created.
- Ability to activate controls.
- Sales or Purchases or Expenses/Special Transactions module is required.

## Create credit controls

### Credit controls

First you must set **credit controls**. To create the controls follow path Parameters - Credit controls- Credit controls. 

![image](media://398ef365-a2fa-471b-a852-fc7189367c2d)

To create a new control, select "New entry", where you enter the code and name. 

 

- Credit control formula: Click on the hyperlink <Credit control formula>. In the window displayed, specify the credit control formula using the available 'Formula terms. "

 

![image](media://708d3274-047a-4035-a3db-eb0def9f4024)

- Relation: Then, you must set the comparison relation that shall apply between the value of the credit control formula and the credit limit set. You may select between:

 

1. [> =]: In this case, if the value of the credit control formula is** lower** than the limit value, a credit limit excess message shall be displayed.
2. [< =]: In this case, if the value of the credit control formula is **greater **than the limit value, a relevant message shall be displayed.

 

- Value:  in the "Value" field define the credit limit to be used in the specific control in general.

 

### Customer control policies  

The credit controls execution is always carried out in the framework of the control policy that you set in "Credit Control" parameter, in the trading party's data (page <Financials>). 

To create a control policy follow path Parameters - Credit controls- Customer/debtors credit controls. 

![image](media://e5555629-bf64-4902-9fb3-c26fd2256eaa)

 

Selecting "New" you will fill first enter the basics of the control (code, abbreviation, name). Then, set the following: 

- Behavior: use this parameter to specify the behavior of the application in case the credit limits are exceeded during documents posting. Accepts the values:
  - Warning: during document posting a warning message will be displayed about exceeding the credit limit.
  - Prohibition: document posting shall be prohibited.
  - Question: a question shall be displayed concerning the posting of the document.
  - Approval: the document shall follow the approval scenario process.

 

- Approval scenario: if you set the "Approval" to the credit policy behavior, you must enter a specific approval scenario.

 

In area <Participate in control policy>, enter the payment methods and the document Series to which the control shall apply.

 

Each policy may contain one or more credit controls. To enter a credit control in a policy follow the following process: 

- On <Credit controls> page, select "new entry" (lower left part of the view) in order to enter the desired control.
- Selecting "New entry" displays "Entries selection" window which shows all the controls you have created and there you can select the control/s to be integrated in the control policy.

![image](media://92d2d59f-b1dc-48bd-9ca7-22c669e6572d)

 

Info: 

- All controls in the same control policy entry apply disjunctively (or), and in the exact order of their selection.

You can change their application order using the arrows. 

- If you want the rules to apply conjunctively (and) you must enter them in different lines of the same control policy.

 

## **Configuration/ Conditions for the application of credit controls **

To apply the credit policy of the trading party to a document the following must be executed:

- In the "Trading Parties" basic parameters, in the area <Credit controls and financials" you must have selected value [Yes] in parameter"Activation".

 

- n document type (page <Commercial>):
  - Credit controls: define the type of the control /activation of credit controls. Accepts the values:
    - No Check: no credit controls are activated.
    - From credit policy: credit controls are activated and the control method is determined by the credit policy.
    - Warning always: credit controls are activated with a warning during document posting.
    - Forbid always: credit controls are activated while document posting is prohibited.
    - Ask always: credit controls are activated with a question during document posting.
    - Always approval: credit controls are activated using approvals.
  - Scenario: if you set "Credit controls: Always approval", you can set the approval scenario that will follow the document.

 

- In the constant data of each trading party, on page <Financials>, complete the credit control (control policy) to be applied.

 

## Definition of different limits per trading party on the same credit control.

In order to set different credit limits per trading party for the same credit controls the following are required:

- In the General trading party parameters - area "Credit Controls and financials", parameter "Credit limits" select indication [Apply trad.partner limits].
- In the constant data of each trading party, on page <Financials> you must also enter the credit control (fields: "Credit control 1", "Credit control 2", etc.) for which you wish to set a different limit, including the value of such limit.

![image](media://207e62e2-0b2e-478f-8565-a7013f608cf0)

Note: The ability to modify the limits applies only to credit controls that have been integrated in the credit policy of the trading party.