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Credit Limit Adjustments

Overview

Credit limit adjustments let credit managers update the credit limits and expiration dates of a single customer, a group of customers, or all customers through a posting process. You can add credit limit adjustment entries to update customers and customer credit groups, or you can use them to calculate automatic credit limits. The entries can then be reviewed, sent for approval through a workflow, and posted to customer accounts.

Credit limit adjustment workflow

The Credit limit adjustment workflow is tied to the Credit limit adjustment journal. Credit limit adjustment workflows are used for the overall journal approval process.

The workflow approval element called Approve credit limit adjustment journal is used to approve the entire Credit limit adjustment journal that was submitted to workflow. There is also an automated task associated with this workflow called Post journal. This can automatically post the Credit limit adjustment journal upon approval.

There is also an option on the Credit limit adjustment workflow to add in a Credit limit adjustment line workflow. Here, you can select an approved Credit limit adjustment line workflow for use in your Credit limit adjustment workflow.

When the workflow is selected, a single workflow for all line items can be invoked. There is also an option for invoking individual workflows for each line item based on conditions. It should be noted, that either way, each line on the journal has to go through its own approval process.

Credit limit adjustment line workflow

Similar only in name to the Credit limit adjustment workflow, this workflow works as a sub-workflow in the Credit limit adjustment journal form, but on the line level. This allows for additional granularity for your approvals at the line level.

The Credit limit adjustment line workflow has one new element, and that is the approval element. It is used to add approvals at the line level. You can build out additional steps, like with any workflow. This helps to control your processes and ensure the new credit limits are being seen by the right users. 

The Credit limit adjustment workflows work in tandem. First, you create your journal, then you create your lines. When finished, submit your workflow for additional review.Once the workflow batch job has been processed, the Credit limit adjustment line will be sent out for approvals.

At the same time, the Credit limit adjustment journal entry will be automatically submitted for approval as well and can be accessed at the journal level or at the line level.

If the Credit limit adjustment workflow at the journal level gets approved before the lines, the entire journal, including the lines, will automatically be approved and posted if set up for automatic posting (even if it includes the line sub-workflow as well, as seen in my example above). This will occur even if the lines haven’t been approved yet, so take caution here. One way to combat this is to set the Credit limit adjustment line workflow approval as a condition for the approval element in the Credit limit adjustment workflow.

Once the lines are approved, you can see the Approval status marked as Completed on the line and then approve the overall Credit limit adjustment journal workflow.

You do not have to activate both of these workflows. You can have a header workflow without the line workflow, but the line workflow doesn’t function without the header workflow. The Credit limit adjustment line workflow is meant to complement the Credit limit adjustment workflow as a sub-workflow.  If you do not want to include the Credit limit adjustment line workflow, then you can exclude it when creating your Credit limit adjustment workflow and just submit approvals at the journal header level.