Customer Credit Balance
Overview
Below is a business-focused explanation of the Customer Credit Balance report in Dafater, written for sales, finance, and management users.
Customer Credit Balance Report
Module: Selling
Purpose: Customer Credit Monitoring and Control
1. What Business Information This Report Provides
The Customer Credit Balance report shows how much unused credit is available for each customer based on their approved credit limit and current outstanding receivables.
In simple terms, it answers: - How much credit has been granted to a customer? - How much of that credit is already used? - How much more the customer can buy on credit right now?
This report gives a clear picture of customer financial exposure and helps the business manage sales risk.
2. When and Why to Use This Report
When to Use
- Before approving new sales orders or invoices
- During credit reviews or customer account evaluations
- At month-end or quarter-end financial reviews
- When following up on overdue payments
- During sales planning or risk assessment meetings
Why It Is Important
- Prevents over-selling to customers who have exceeded their credit limit
- Protects cash flow by identifying high-risk customers early
- Supports disciplined credit management without blocking healthy sales
- Aligns sales activity with finance policies
3. Key Columns and Their Business Meaning
Customer
Identifies the customer account.
Used to review credit exposure customer-by-customer.
Credit Limit
The maximum credit amount approved for the customer.
This reflects the business’s risk tolerance and trust level for that customer.
Outstanding Amount
The total unpaid amount currently owed by the customer.
This shows how much credit has already been used.
Credit Balance
The remaining credit available to the customer.
- Positive balance: Customer can still buy on credit
- Zero balance: Customer has reached the limit
- Negative balance: Customer has exceeded the credit limit and is a credit risk
Customer Group / Territory (if available)
Helps analyze credit exposure by market segment or sales region.
4. Available Filters and Their Business Purpose
Customer
Used to review a specific customer’s credit position before approving sales.
Customer Group
Helps finance and management evaluate credit exposure across different customer segments (e.g., Retail, Wholesale, Corporate).
Territory
Allows sales managers to assess credit risk by region or sales team.
Company
Useful when managing multiple companies within Dafater to isolate credit exposure per business entity.
5. How to Interpret the Results for Business Decisions
High Credit Balance
- Customer is financially healthy
- Safe to accept new orders on credit
- Opportunity to increase sales volume
Low Credit Balance
- Customer is close to their credit limit
- Sales should proceed cautiously
- Consider payment follow-ups or partial advance payments
Negative Credit Balance
- Customer has exceeded approved credit
- Sales should be paused or require advance payment
- Immediate action needed from finance or collections team
Trend Review
By reviewing this report regularly, the business can: - Adjust credit limits based on payment behavior - Identify customers who frequently exceed limits - Improve cash flow forecasting
6. Common Use Cases and Scenarios
Sales Order Approval
Sales teams check this report before confirming large or repeat orders to ensure the customer has available credit.
Credit Review Meetings
Finance teams use the report to decide whether to increase, reduce, or freeze customer credit limits.
Overdue Payment Follow-up
Customers with negative credit balances are prioritized for payment reminders and collection efforts.
Management Reporting
Management uses the report to understand overall credit exposure and assess financial risk across the customer base.
Territory or Segment Analysis
Sales managers identify regions or customer groups that carry higher credit risk and adjust sales strategies accordingly.
Summary
The Customer Credit Balance report in Dafater is a critical tool for balancing sales growth and financial control. It ensures that the business sells confidently, protects cash flow, and maintains healthy customer relationships through disciplined credit management.
Report Information
- Module: Selling
- Related DocType: Customer
- Report Type: Script Report
- Standard: Yes