Accounts Receivable | Credit Management

Credit limit at the SO. Not at FY-end review.

Per-customer credit limits set on the customer record. Live utilisation across open SOs, open invoices and open receipts. Breach blocks the next SO with a CFO override path. Exposure aging flagged per bucket. The trigger fires before despatch, not after the cheque has bounced.

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Credit Management screen showing per-customer credit limit, opening balance, live exposure across SOs and invoices, and aging buckets.

How it works

From limit setting to live exposure.

Step 01

Limit set per customer

Credit limit configured per customer, per entity. Limits can be uniform or risk-tiered (gold / silver / bronze segments). Limit changes routed through approval.

Step 02

Utilisation tracked live

Available credit equals limit minus open SOs minus open invoices minus open receipts (configurable formula). Updates the moment a SO is saved or a receipt posts.

Step 03

Block at SO save

When a new SO would breach the limit, the SO save blocks with a CFO override path. The override captures reason and approver in the audit trail.

Step 04

Aging exposure flag

Customers with high outstanding in 90+ day buckets surface for limit review. The CFO sees concentration and aging risk on a single screen.

What the system does

Capability, input, output.

Capability	Input	Output
Per-customer credit limit	Customer + risk tier + limit	Limit + approval matrix
Live utilisation	Open SOs + invoices + receipts	Available credit, real-time
SO block	New SO + available credit	Allow / block / override path
Aging exposure	Customer outstanding by bucket	Risk flag on customer record
Override capture	CFO override + reason	Audit trail with approver
Concentration view	All customers + outstanding	CFO concentration dashboard

Per-customer credit limit

Input

Customer + risk tier + limit

Output

Limit + approval matrix
Live utilisation

Input

Open SOs + invoices + receipts

Output

Available credit, real-time
SO block

Input

New SO + available credit

Output

Allow / block / override path
Aging exposure

Input

Customer outstanding by bucket

Output

Risk flag on customer record
Override capture

Input

CFO override + reason

Output

Audit trail with approver
Concentration view

Input

All customers + outstanding

Output

CFO concentration dashboard

Compliance + integrations

Credit risk surfaced at the source.

The block fires at SO save, not at audit. The override leaves an audit trail. The concentration view feeds Schedule III credit risk disclosure.

Regulations we work within

Schedule III, Part I

Trade receivables aging disclosure pre-populated.
Ind-AS 109 (Expected Credit Loss)

ECL provisioning supported with portfolio analytics.
Companies Act, Rule 11(g)

Override audit trail captured.

Connects to

Tally Prime Customer master sync with credit limit
Credit bureau APIs External credit score feed (CRIF, CIBIL)

Credit Management FAQ

What buyers ask.

Can the credit limit formula be customised?

Yes. Default formula is limit minus open SOs minus open invoices minus open receipts. Configurable to include / exclude open SOs (some teams hold credit only against invoiced amounts), to include / exclude credit notes, and to include / exclude entity-specific items.

CFO override on a credit breach. How does that work?

The override surfaces the breach amount, the customer's aging exposure, and the historical override pattern for that customer. CFO authorises with reason; the override is captured in the audit trail and visible on the customer record.

Can we pull credit bureau scores into the limit decision?

Yes. CRIF and CIBIL APIs are integrated. The bureau score (where available for B2B customers) feeds into the risk tier. Limit recommendations are surfaced at customer onboarding and at periodic review.

How does this play with Ind-AS 109 ECL provisioning?

The customer aging buckets, payment behaviour and bureau scores feed into the Expected Credit Loss model. The ECL provision is computed at portfolio and customer levels per Ind-AS 109. The CA reviews the provisioning before period close.

Related features

Set up credit limits on your top 50 customers.

Connect one entity, free. Configure the limit formula and the override matrix. The first SO breach surfaces the override screen, the audit trail and the concentration view.