The party with the largest outstanding is the one we keep loading.
Credit control puts a limit and a payment term on each customer, then shows both at the moment the order is taken. Cross the limit and the order waits for someone to release it, and that release is recorded with a name. Ageing by bill, by site or by branch says who to ring before the lorry leaves.
Three weeks before Diwali the distributor orders double. His limit is two lakh, his outstanding crossed it in September, and the godown loads anyway because he has always paid in the end. By January the end has not arrived, and the conversation is about a cheque rather than an order.
His limit and his terms sit on his record. While the order is still being typed, the screen shows what he owes and how much is overdue. Holding the load or letting it go stays your call. The difference is that somebody makes it on purpose.
What credit limits and control does.
Limit and terms on the record
A rupee limit and a credit period per customer, and a different one for the same party’s second site if that is how you trade.
The balance shown while ordering
Outstanding, overdue and the unbilled load already committed, on the order screen. Not in a report somebody prints on Monday.
A hold that a person releases
Orders past the limit stop and wait. The owner releases them with a reason, and his name stays on that release.
Ageing that matches the ledger
By bill, by site, by branch. A payment is applied against the job it was meant for.
Cheques and what happened to them
Post-dated cheques on hand, deposit dates, and the ones that came back. A returned cheque pulls the customer back onto hold.
A warning where a block is wrong
For old customers most owners want a red line on the screen rather than a locked door. Both are possible, and the choice is yours.
The people who open this every day.
Counter staff
Sees the limit before promising delivery, and stops being the person who says no.
Accounts assistant
Keeps the ageing honest and flags who has crossed his days.
Sales executive
Knows his customer is on hold before he reaches the shop.
Owner
Releases what he wants to release. Nothing goes out quietly.
It is one part of a system, not an island.
A module earns its place by what it passes to the next one. These are the connections we set up most often.
- Collections and follow-up
- Invoice management
- Sales orders
- Dealer portal
- Tally
Products that include it.
How we would put it in.
Questions owners ask about credit limits and control.
If we block orders, will we lose customers?
Some owners do, which is why the block is optional. Most start with a warning on the screen and a monthly list of who is beyond terms. That list changes behaviour faster than a locked door.
Our outstanding is in Tally. Why keep it here too?
It is not kept twice. Bills and receipts come across from Tally, and the limit and hold rules sit on the order screen where the decision is actually taken.
Is this built into anything already?
Yes. Building Material Trading Software shows the limit and the current outstanding while an order is being booked, and anything past it is held for the owner to release.
We have eight regular parties. Is a diary enough?
With eight parties and one person billing, yes. It breaks when a salesman takes orders in the field, when one party buys for three sites, or when a festival doubles the load.
Businesses that ask for this.
Tell us how you handle credit limits and control today.
A spreadsheet, a register or another system: say which, and we will tell you plainly what is worth changing.
- No obligation
- We reply the same working day
- Your details stay private