Microsoft Dynamics GP 2016 R2: Receivables Management Credit Limit warning fails may not work all the time

Hello GP Fans!

Microsoft Dynamics GP2016 R2 brings several great new features as well as several product enhancements, such as this update to the Credit Limit Warning.

Dynamics GP is designed to use the following calculation to determine whether the credit limit warning fires.

('Customer Balance' + CurrentInvoiceDollarAmount {this is for your current document}

+ 'Unposted Sales Amount' + 'Unposted Other Sales Amount' + 'On Order Amount'

- 'Unposted Cash Amount' - 'Unposted Other Cash Amount' - 'Deposits Received' ) >

       'Credit Limit Amount' of file RM_Customer_MSTR

Unfortunately, this calculation does not consider that there may be an unposted credit document that has an amount already applied to a posted debit document. When GP does the math to determine if the credit limit is exceeded, it sees there is an unposted credit document and increases the credit limit by that amount regardless of what the unapplied amount is.

Consider the scenario where:

1. Credit Limit is set to $5000

2. Post a Sales Invoice for $4000

3. Post a Sales Invoice for $500

4. Create a Sales Return for $500 and apply it to the $4000 Sales Invoice. Save but do not post this Return.

5. Create a Sales Invoice for $1001 and save

Previously, GP would calculate the credit limit warning like this:

((4000-500) + 500 – 500 + 1001 > 5000 = False)

Now, with Microsoft Dynamics GP2016 R2, we have updated our calculation process to take the above scenario into account. We now perform the calculation like this:

(4000 + 500 – 500 + 1001 > 5000 = True)

You would now be presented with the Credit Limit warning/password, where as previously, you would not have been.

So there we have it – an improved Credit Limit Warning!!

Click HERE for more detailed documentation for Dynamics GP 2016 R2 features.
Dynamics GP 2016 R2 feature VIDEO click HERE!

Be sure to check back to the Microsoft Dynamics GP 2016 R2 Feature Blog Series Schedule page to review posted blog articles and upcoming blog posts to help you gear up for What's New in Microsoft Dynamics GP 2016 R2 with great content, documentation, and videos.

Thank you!

Dean