At first glance, Credit limit adjustments look at the act as a journal… and in many ways, they are like a journal but the reason that “journal” is not part of the menu option name is that they don’t create financial transactions. So, what are Credit limit adjustments and how are they used? Credit limit adjustments are used to update a customer or a group of customer’s Credit limits and to create Temporary credit limits.
Note 1: Credit limits can be manually updated (based on the flag setting in Credit and collections parameters) on the Customer or through Credit limit adjustments, but Temporary credit limits can only be updated through Credit limit adjustments.
Note 2: Credit limit adjustments can also be accessed from the customer record. This is a print screen of where to access Credit limit adjustments on the customer record.
To create a Credit limit adjustment, go to Credit and collections > Credit limit adjustments > Credit limit adjustments.
Credit Limit Adjustment Types
There are 2 Credit limit adjustment types:
- Credit Limit – Use this option if you want to update the customer’s Credit limit.
- Temporary credit limit – Use this option if you need to enter a new Temporary credit limit.
Here’s an example of the Credit limit adjustment type = Temporary credit limit. To create a new record, click New > select Credit limit adjustment type = Temporary credit limit > enter a Description > click Lines. To add a Temporary credit limit for a customer, click Add customer adjustment. To add a Temporary credit limit for a customer credit group, click Add credit group adjustment. You also have the option of generating the lines using the Generate menu. Once the list has been generated, you can then manually add, edit, delete the lines on the adjustment.
Note: To see how to set up the logic for the Automatic credit limits, see the Automatic credit limits section.
If a workflow is active, once the lines have been added (or generated), you can now submit the adjustment for approval by clicking Workflow > Submit. Once approved (if a workflow is not active, you can post without an approval), Post the adjustment. This blog is the next part of a multi-part blog series detailing the new Credit Management functionality in Dynamics 365 for Finance and Operations. Look for additional releases in this series in the coming weeks!
MSDyn365FO Credit Management, Overview – Credit Management Overview MSDyn365FO Credit Management, Part 1 – Is Credit Management enabled in your environment? MSDyn365FO Credit Management, Part 1 – Are there any new security roles for Credit Management? MSDyn365FO Credit Management, Part 1 – Are there any new workflows available? MSDyn365FO Credit Management, Part 2 – What are the new parameters? MSDyn365FO Credit Management, Part 3 – What’s new on the Customer screen? MSDyn365FO Credit Management, Part 4 – What are Risk Scores and how are they updated? MSDyn365FO Credit Management, Part 5 – What are Automatic credit limits? MSDyn365FO Credit Management, Part 5 – What’s new in the Customer Fact Box? MSDyn365FO Credit Management, Part 6 – What are Customer Credit Groups and how are they used? MSDyn365FO Credit Management, Part 7 – What logic is used when looking at the customer credit limit? If you’re interested in learning more about credit limit adjustments or have any comments, please Contact Us and feel free to connect on LinkedIn and Twitter!