About credit checks in the Sales workspace

A credit check of the customer is performed for sales orders of most predefined types.
When a user selects a customer for the order, the system performs the customer credit check.
If the credit rules specified for the customer in the Customers (AR303000) window have been violated (that is, if the customer has exceeded the credit limit, the days past due, or both), the system displays a yellow exclamation mark to the left of the Customer field.
By pointing at the mark, the user can read the warning.

You can use the Hold document on failed credit check check box in the Order types (SO201000) window to indicate to the system how the orders of the specific type should be processed if the customer fails the credit check:

• If the check box is selected for the order type, when an order of this type is saved (or taken off hold, depending on whether the Hold orders on entry check box is selected for the order type), it will get the Credit hold status.
• If the check box is cleared for the order type, when an order of this type is saved or taken off hold, it will get the Open status.
  The order can be processed as the orders that passed the credit check can be processed.

As for the predefined order types, the Hold document on failed credit check check box is selected only for the orders of the SA (Sales orders with allocation) type.

If customer payments were entered or order amounts were decreased, orders that were previously placed on credit hold can be released from it.
In the Process orders (SO501000) window, you can select orders with the Credit hold status and click Release from credit hold (as long as you are as a user have access to this action). This initiates credit checks for each order selected, and if the credit check is successful, the order receives a status of Open.

If approval of sales orders is configured in your system, you may need to assign the orders that have been taken from credit hold for approval as other orders.
In this case, add to the approval map a condition or multiple conditions that assign the orders with Credit hold check box selected to specific approvers.
Then on release from credit hold, the orders will get the Pending approval status if the conditions are met.

Alternatively, you can release each order from credit hold individually by using the Sales orders (SO301000) window.
If you as a user have access to the Release from credit hold action on the Actions menu in the window toolbar of the Sales orders (SO301000) window, you can click this action to change the status of the order to Open and process it further despite of the failed credit check.
If when editing this order you increase the order amount, then when you save the order, it will get the Credit hold status.
If you do not change the amount, you can process the order further; an invoice generated for the order will not get the Credit hold status (even if the Hold invoices on failed credit check check box is selected in the Sales order preferences (SO101000) window) and can be released.

Generally, invoices are generated for sales orders that have passed the credit check; however, you may need to perform a separate credit check for invoices and hold invoices on failed credit check.

Depending on your organisation's business processes, the time range between shipment creation and invoice generation may be significant and during this time, the prices may change.

Also, services and warranties may be added manually to invoices, rather than to sales orders.

A credit check is performed for each new invoice that is created by using the Customer invoices (SO303000) window, and if the customer fails the credit check, the system displays a yellow exclamation mark to the left of the Customer field and a warning.
However, you may want invoices to be placed on credit hold if they fail the credit check.
You can select the Hold invoices on failed credit check check field in the Sales order preferences (SO101000) window to indicate to the system that all invoices that fail the credit check should get the Credit hold status.

For invoices with the Credit hold status, in the Process shipments (SO503000) window, you can periodically perform the Release from credit hold action, which initiates a credit check and opens the invoices of those customers who have paid their outstanding balances fully or partially or have extended the credit limits.