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What it does
A credit bill is for a customer who pays later, so the party needs an account. The amount goes into their ledger and shows in Outstanding.
A ledger is the running record between you and one party: what they bought, what they paid and what is still due. A credit bill debits the customer's ledger. Debit (Dr) means the party owes you. When they pay, the receipt credits the ledger and reduces what they owe.
5.8Making a credit bill and the credit-limit question
A credit bill is for a customer who pays later, so the party needs an account. The amount goes into their ledger and shows in Outstanding.
- Press Ctrl+S → New. In Terms choose Credit.
- In Party Name, type a few letters of the name or the mobile number and pick the party. For a new customer press F3 (or the + button) and fill the account (Chapter 4).
- Check the GST number on the account. If the GSTIN and the state do not agree, it shows in red. Fix it before you save, or your GST reports will be wrong.
- The Due Date fills from the party's Credit Days for Sale, counted from the bill date.
- Add the items exactly as on a cash bill and press Save.
The credit-limit question. Give a party a Credit Limit in their account, then choose in General Settings → Most used → Credit Limit Warning what happens when a bill takes the party over it:
| Choice | At Save |
|---|---|
| Never Chack Credit Limit | Nothing is checked. |
| Warn me if Credit Limit is exceeding | A message gives the limit and the balance with this bill. The bill saves. |
| Ask me to continue | The same message asks Do you wish to continue. Yes saves, No stops. If the owner has switched on credit approval, an approver must type their user name and password instead (35.10). |
| Dont Allow Bills if Credit Limit Is exceeding | The message ends with Billing is not allowed beyond this limit. The bill does not save. |
Read every step in the guide: Sale Billing, section 5.8
4.7Credit Days, Credit Limit and Bill Limit
These fields are in the More Info window once Maintain Bill By Bill Balance is on in Settings (4.2).
| Field | What it does |
|---|---|
| Credit Days for Sale | Days of credit you give this customer. A sale bill's due date becomes the bill date plus these days. |
| Credit Days for Prch | Days of credit this supplier gives you. |
| Credit Limit | The most this party may owe you in total. |
| Bill Limit | The largest single bill you allow for this party. |
A limit works only when you tell Speed Plus what to do when it is crossed: Settings icon → General Settings → Most used → Credit Limit Warning. The choices go from never checking, to Warn me if Credit Limit is exceeding, to Ask me to continue, to Dont Allow Bills if Credit Limit Is exceeding. The bill limit has its own Bill Limit Warning under Warnings and locks, with a choice to treat it as a monthly limit.
Read every step in the guide: Create Accounts, section 4.7
Questions and answers
When do I choose Cash and when Credit?
Cash when the customer pays now; no account is needed. Credit when they pay later; pick their party account so the amount shows in their ledger and in Outstanding.
Save shows "Your Credit Limit is expiring". What now?
The bill takes the party over their credit limit. With Ask me to continue, press Yes to save or No to stop. With Dont Allow Bills if Credit Limit Is exceeding the bill cannot be saved; collect payment or ask the owner to raise the limit in the party's account.
I do not see Credit Limit or Credit Days on the account.
Turn on Maintain Bill By Bill Balance in the account's Settings. The fields appear in the More Info window.
I set a credit limit but no warning comes.
Set General Settings → Most used → Credit Limit Warning to warn, ask or stop. With the first choice, limits are never checked.