Credit Limit and Days Allowed Over Functionality

[scott_1111]

HI,

I am trying to work out how the AR Transactions Days Over and Overdue Limit of works

If I have a customer who has a credit limit of 2,000,000 and terms of 75 days,
If I set the Days over to be 30, and the overdue limit to be 200,000 can you please respond with what would happen in the below examples

Customer enters an order, they are within terms. The order amounts to their total balance of 2,100,000. Would this order go on hold?
Customer enters and Order, that are 2 days over their term. They are under their credit limit. Would this order go on hold?
Customer enters an order, Their total balance is 1,900,000 but they are 45 days over their term. Whould this go on hold?


I have tried researching what the calculation is for this option, but to no avail. Appreciate any comments or assistance here.

Thanks
scott

 

[Jay Converse]

That's not how terms works. Terms are used to calculate discounts. If they pay before before the terms are up, they get a discount on the invoice

Sage 300 Whisperer

 

[scott_1111]

Thanks, I am aware that’s not how terms work. I am trying to ascertain how the two options for days over and $ over limit affect the credit calculation.

Do you any example of how those two specific fields affect the calculation of when an order will go on hold?