| The business partner's credit limit |  |
| For invoice-to business partners and invoice-from business partners, you can set a credit limit. If you perform credit checking for the business partner, when you enter a sales order or a purchase order for the invoice-to business partner ERP LN checks that the sum of the open orders, the open billing requests in the case of a sales order, the open invoices, and the amount of the new order does not exceed the credit limit. The credit rating that you select for the business partner determines when you perform a credit check. Refer to Credit rating for details. Note The credit limit is part of the default business partner data and applies to all the sales offices or purchase offices in the company. To specify a credit limit, you must not select a department. You cannot specify a separate credit limit for each department. To check the credit limit, ERP LN computes: The total of open orders of the business partner for all sales offices or purchase offices in the company The total of open billing requests for the invoice-to business partner in all the financial companies linked to the sales offices. The total of open invoices of the business partner in all the financial companies linked to the sales offices or purchase offices. Related topics Credit rating Credit control Business partner data by financial company |