Credit control: balancing sales opportunity and collection risk

Credit terms allow a customer to pay later; credit control limits the risk of not collecting. An overdue account, a credit-limit breach and a blocked customer are related but different situations. A successful sale that is never collected can still damage the business.

DNA Credit Status can control invoice permission, overdue checking, credit checking and required override reasons. Authorized overrides use a specific module permission. When available, active Override reason codes provide a consistent explanation alongside written justification; a status color is only a visual aid. A warning acknowledgement is different from overriding a block. If the credit data cannot be read, the frontend allows work to proceed with an unavailable-check state; this is not evidence that the customer passed. An increase in the document amount invalidates an earlier acknowledgement.

Why credit is a commercial decision

Supplying before collection gives the customer time to pay, but requires the supplier to finance the gap. The supplier may already have paid wages, purchased materials, or incurred delivery costs. A sale that remains uncollected can therefore consume cash even when its invoiced margin appears attractive.

Credit limits and overdue checks address different signals. A customer can remain within a limit while paying late. Another customer can pay promptly but place an order that exceeds the permitted exposure. A blocked status can represent a separate business decision. Treating every restriction as the same problem makes exceptions difficult to manage.

A practical exposure decision

A customer with a 10,000 limit already owes 9,000 and requests another 3,000 of goods. The salesperson should investigate outstanding payments and the proposed exposure before promising immediate release. An override, where permitted, records an accountable decision; it does not make the unpaid balance disappear.

A claimed payment should be distinguished from an actual recorded receipt. An unapplied receipt may explain part of the balance, but its relationship to the debt still needs to be understood. The decision should use a reliable current position rather than the customer's assurance alone.

Overrides preserve accountability

DNA's authorised override mechanism provides a way to record an exceptional decision where the user's permission and the configured conditions allow it. The reason should explain why the proposed exposure is acceptable in this case.

For example, a documented incoming payment or an agreed secured arrangement may be relevant evidence. A general reason such as important customer provides much less information. The override does not remove the unpaid balance or guarantee collection; it records who accepted the exception and why.

Different teams see different risks

Sales understands the relationship and opportunity. Finance understands payment history and exposure. Operations understands the cost and feasibility of fulfilment. A sound credit decision combines those perspectives without assuming that a good relationship removes the need for evidence.

Credit control should support sustainable sales. The useful outcome is an explicit arrangement the business can fulfil and collect, with exceptions that remain understandable afterwards.