https://help.tallysolutions.com/docs/te9rel64/Advanced_Features/Advanced_Accounting_Features/Exceeding_Credit_Limits.htm

What happens when the credit limit exceeds?

During voucher entry, if the credit limit is exceeded, at the time of accepting the voucher, an error message is displayed.

The error message shows the credit limit defined for the party and the amount exceeded as shown below:

You can however,

Enter a lower value (within the prescribed credit limit) to complete the entry, or

Enable the option Override credit limit using post-dated transactions? in the party ledger.

This feature helps in restricting invoicing for the customers or parties exceeding the prescribed credit limits and thereby facilitating better and effective control of the outstandings.