Merchant credit
Merchant credit, also called a merchandise credit or a trade credit, is in trade turnover one of the main sources of short-term financing of enterprises. A merchant credit occurs when a vendor of goods or services agrees to the postponement of due date. This is a relation in which business partners grant each other a credit without participation of a bank. The essence of this form of crediting consists in that a customer pays in cash for purchased goods or services not immediately, but within the time specified.
Merchant credit is granted and credit limit is specified in the system in the customer form, in the Sales tab. Detailed description can be found in Comarch ALTUM Directories manual. In case if a customer has been granted two or more active credit limits, then the one that will be included will depend on a parameter set in trade components configuration. There are two possible options: The highest and The lowest.
Figure 239 Tab Trade on the customer form.
Figure240Current credit limit parameter in trade components configuration.
In the document types window, it is possible to specify a type of credit limit control during document confirmation. This parameter is available for three document types: sales order, sales invoice and receipt. There are three options of credit limit control: No control, Warning and Sales blockade. By default, the third option: Sales blockade is checked in the sales invoice and the receipt, whereas the No control option is checked in the sales order. More information can be found in Comarch ALTUM System Configuration manual, in chapter Document types..
Figure241Tab General on the form of sales invoice in document types configuration.
In receipt documents, such as sales order, sales invoice and receipt, in the header of each of the documents, there is a filed with information about a customer’s remaining credit limit. This information is provided in the system currency.
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Example
Merchant credit configuration:
1. Customer:
Customer ARKO has two active credit limits specified: the first credit limit amounts to 1000 USD and the second credit limit amounts to 2000 USD.
2. Trade components configuration:
In the trade components configuration, the set parameter indicates that a current credit limit must be the lowest limit.
3. Credit limit control during document confirmation in document types
Credit limit control during document confirmation has been set in the configuration of the sales invoice document to sales blockade. When confirming a sales invoice, the system will check the amount of the used credit limit and the sum of the outstanding receivables, including due date. In case of exceeding the credit limit, the system will block the confirmation of the invoice. The invoice will be saved as unconfirmed which enables its modification.
Maintaining a customer with granted credit limit:
Customer ARKO has already used 60% of the granted credit, that is 600 USD. The customer is then purchasing a merchandise on credit which value exceeds the remaining credit limit. This customer is the payer of this transaction. A generated document amounts to 800 USD.
While confirming the sales invoice and canceling the settlement of this invoice, the system will display a message informing that the credit limit, amounting to 1000 USD, has been exceeded by the amount of 400 USD. If the payment for this invoice is not made, the document will be saved as unconfirmed. This allows the modification or deletion of the issued document, that is the decrease of the payment amount or the customer’s withdrawal from the transaction.
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