Company is doing business with dealers/ AWDs on certain credit limits.

Credit limits in terms of

value as well as days are decided on various parameters.
On the basis of prescribed parameters and the business, the branch head will propose the credit
limit for that dealer. The same is to be reviewed & recommended by state head, zonal head to HAIS
for final approval.
Based on approval of HAIS, the same will be updated in System at HO.
These credit limits can be reviewed time to time on the basis of business needs and
recommendations by branch head / zonal head
2. Expectation and requirements

Credit checks should apply at two stages,

o At sales order
o At the time of delivery

System will give warning at sales order level and if the limit exceeds in a sale order the
system will allow saving of sale order however, it will block the delivery against the order.
Irrespective of value limits availability, the billing to the customer would be possible based on
the ageing checks on his outstanding. The permitted ageing limits may vary based on
division.
If the outstanding is overdue by 15 days, order is saved with a warning message. In such
cases HO will only release the sale order.
For MOU party credit ageing check should be a warning message. The warning will be at sale
order and delivery level. HO will release the sale order from credit check.
No credit checks should be applied to Corporate Clients
Credit limits for one time customer ( VIP / Personal Parties) should be maintained.
Credit limit for a dealer having different branches with in one state will be ONE. Which means
that a dealer has more than one branch within a town/state where the payee is one e.g.
Vasant and Co., will have single credit limit.

3. Explanations of Functions and Events

The credit limit will be entered by HO marketing / accounts after considering factors to decide credit
limit of a customer. The credit limit will be updated in system.
If any change in credit limit required the branch head will request for enhancement in credit limit.
Based on approval by authority, the credit limit will be enhanced.
The sale order, which is blocked for delivery, will have to be released by authorized person.
Due date: (Due Net)
In the system the due date is the date from which the system starts calculating the ageing / overdue
of receivables. In other words the system defines the collectable out standing only once the due
date has crossed. However, it is up to the organisation to decide the due date, which could be zero
days as well.