About credit policy application

You can decide whether to apply the credit policy of the parent account to the new sales orders and invoices of the child accounts.
The credit policy is a combination of the credit management tools configured for a customer account in Visma Net.

For details, see: Manage credit policy - overview.

In this topic, you will read about managing credit policy for the parent and child customer accounts.

For a child customer account, if you have selected the Consolidate balance check box on the Customers (AR303000) window (in the Parent info section of the Invoicing settings tab), the Share credit policy check box becomes available for selection on this window.
If you select the Share credit policy check box for the child account, the credit policy configured for its parent account will be applied to the new sales orders and invoices of the child accounts.

With the Share credit policy check box selected for a child account, the settings under the Credit verification rules section on the General information tab of the Customers (AR303000) window are unavailable and are filled with the corresponding values configured for the parent account.
If you change the credit policy configuration for the parent account, the system will reflect these changed settings in its child accounts that share the credit policy.

If you clear the Share credit policy check box for a child account, the settings under the Credit verification rules section of this window become available but retain their values, except for Credit limit, which is set to zero.

With the Share credit policy check box selected for a child account, you cannot put the child account on credit hold individually.
If you change the status of the parent account to Credit hold, the system will put on credit hold all child accounts that share a credit policy with the parent account.

If a child account has had the Hold or Inactive status, its status remains unchanged when you put on credit hold its parent account.
Releasing related accounts from credit hold works similarly to putting these accounts on credit hold.
If you release a parent account from credit hold, its child accounts that have the Share credit policy check box selected are released from the credit hold as well. If you use the Manage credit holds (AR523000) window to put an account on credit hold, the list of accounts on this window will not include child accounts with the Share credit policy check box selected.

Customers that have a multi-branch hierarchy may want to receive consolidated statements. To arrange that, for child accounts, you select the Consolidate statements check box in the Customers (AR303000) window (in the Parent info section on the Invoicing settings tab).

For the child accounts, the settings related to sending the statements (under the Print and e-mail settings section on the Invoicing settings tab of the Customers (AR303000) window) are unavailable and are filled with the corresponding values configured for the parent account.

If you clear the Consolidate statements check box for a child account, the settings related to sending the statements become available but retain their values.

With this configuration, only the parent account is available for statement generation in the Prepare statements (AR503000) window.
The system uses the statement cycle assigned to the parent account.

When you are preparing statements for the parent account, the system includes all documents of child accounts in the statement.
The documents in the statement are grouped by customer account. If the type of the statement is Open items, the system will also print the corresponding subtotal balances for each account involved.

If the Dunning letter management functionality is enabled in the Enable/disable functionalities (CS100000) window, the system consolidates the overdue documents of a parent account and its child accounts that have the Share credit policy check box selected.
The system sends the dunning letters to the parent account contact.

For the child accounts, the settings related to sending the dunning letters (under the Print and e-mail settings section on the Invoicing settings tab of the Customers (AR303000) window) are unavailable and are filled with the corresponding values configured for the parent account.

If you clear the Share credit policy check box for a child account, the settings related to sending the dunning letters become available but retain their values.

With this configuration, only the parent account is available for dunning letter generation in the Prepare dunning letters (AR521000) window.
The system uses the parent-child group data to generate dunning letters.
The documents in the dunning letter are grouped by customer account.

The calculation of overdue charges (if configured) is performed for each customer account individually, regardless of the configuration of parent and child accounts. Separate overdue charge documents are issued to customer accounts.

Related concepts

Manage parent-child relationships - overview

About setting up parent-child relationships

About balance consolidation

About removing relationships

Manage credit policy - overview

Manage dunning letters - overview

Related windows

Customers (AR303000)

Manage credit holds (AR523000)