Credit Limit is the monetary limit up to which the buyer can purchase from a seller on credit. This limit is agreed upon mutually by the seller and the buyer. Credit limits can be set for ledgers created under the groups Sundry Debtors and Sundry Creditors .
By setting credit limits for your buyer or customer, you will be able to effectively manage your receivables. The credit limits allowed by your supplier in the respective ledger, you will be able to effectively manage your payables. During sales, purchase, and order transactions, the credit limit and current outstanding balance of the ledger will be displayed, allowing you to make informed decisions.
You can do the following to manage your outstanding using credit limits:
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