You need to enable the option Override credit limit using post-dated transactions? in the party ledger in order to override the set credit limit. You can then record a post-dated voucher to override the credit limit.
A credit limit is the limit up to which a customer can make purchases from a seller on credit basis.
A post-dated transaction indicates that a certain amount will affect the books of accounts based on the date of the voucher.
In Tally.ERP 9, you can override the credit limits by recording post-dated receipts or payments.
Note: To use the option Override credit limit using post-dated transactions?, you need to enable the option Maintain budgets and controls? in F11: Features > Accounting Features.
Bangalore Traders has set a credit limit of Rs. 50,000 for their customer National Traders. However, National Traders wants to continue making purchases from Bangalore Traders even after the credit limit is crossed. By recording a post-dated receipt voucher, Bangalore Traders can override the credit limit set for National Traders.
Bangalore Traders sets a credit limit of Rs. 50,000 in the ledger of National Traders, as shown below:
Bangalore Traders records a sales entry for Rs. 45,000 on 1-4-2016, as shown below:
On 2-4-2016, Bangalore Traders raises another invoice for Rs. 25,000. An error message is displayed when the credit limit is crossed, as shown below:
As the credit limit is exceeded by Rs. 20,000, National Traders requests Bangalore Traders to record a post-dated transaction, dated 10-4-2016.
To override the credit limit, Bangalore Traders has to enable the option Override credit limit using post-dated transactions? in the party ledger, as shown below:
On 2-4-2016 Bangalore Traders records a post-dated receipt voucher dated 10-4-2016, as shown below:
Note: Press Ctrl+T to mark a voucher as Post-Dated in the voucher creation mode.
On 2-4-2016, Bangalore Traders records a sales invoice for Rs. 25,000, overriding the set credit limit for National Traders, as shown below:
