Credit Warnings Field in The Sales & Receivables Setup Table in Dynamics NAV

In Credit Warnings Field in the Sales & Receivables Setup you can specify whether you want the program to give a warning about the customer’s status when you create a sales order or invoice, or not. I have seen to many times, end-users being blind to warnings (even with written instructions), just clicking OK, to get rid of the form, without actually making a decision (which needs to be made, according the the option selected in the setup).
Credit Warnings Field in Sales n Receivables Setup Table

In the Credit Warnings field, you have following options:

Credit Warnings – Both Warnings

When you use this option, the program checks both the Credit Limit and the Balance Due fields on the customer’s card and gives a warning if the customer has exceeded its credit limit or if the customer has an overdue balance (check below options for more specific details).

Note: It would start with the Overdue Balance check, and then would move to Credit Limit check.

Credit Warnings – Credit Limit

When you use this option, the program compares the value in the Credit Limit (LCY) field on the customer’s card with the customer’s balance and gives a warning if the customer’s balance exceeds this amount.

For example, if we would check Credit Limit (LCY) and Balance (LCY) fields for customer:Check Credit Limit for Customer

We could see, that Credit Limit is almost reached. So, the next time, we create a new sales order, we might get Credit Limit warning:
Credit Limit Warning

Note: Credit Limit (LCY) set to 0, means that customer does not have a limit at all, therefore, a warning message would not be displayed.

Credit Warnings – Overdue Balance

When you use this option, the program checks the Balance Due field on the customer’s card and gives a warning if the customer has an overdue balance.

For example, if we would look at customer 50000. We can see, that Customer Limit is not set at all:
Customer - No Credit Limit

But, if we would click on Customer > Statistics (or F9), we would see that Overdue Balance (LCY) is more than 0:
Customer - Balance Due (LCY)

Which means, that when creating a new sales document for this customer, we would get Overdue Balance warning:
Customer - Overdue Balance Check

Credit Warnings – No Warning

When you use this option, the program gives no warning about the customer’s status. Which means, you can create new sales documents without checking the customer credit limit, not customer overdue balance.

From business perspective, these warnings could be invaluable – each time you create a new sales document, you get an actual view of your customer’s credit standing, and based on warnings you can make instant decisions on how to proceed. However, I have seen so many times, people just ignoring these warning messages (automatically clicking Yes, without understanding the value (or the meaning) of the warning message). In this scenario, if you really do not care about the warning message, it’s better to change setup of Credit Warnings to No Warning. At least then you will be more efficient in entering new sales documents.

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