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How does 'Put Account on Credit Hold Automatically' work

Article ID: 8379, created on Apr 1, 2010, last review on Nov 11, 2014

APPLIES TO:
  • Business Automation

Symptoms

Parallels Business Automation (PBA) put a customer on credit hold, even though the customer has a credit limit which has not been exceeded.

Resolution

An account will be put on credit hold automatically if the following conditions are met:

  • There is an overdue invoice after its grace period has ended

  • The customer's account balance is negative and the hold period has ended

  • The parameter Put Account on Credit Hold in the Credit Terms of the customer account is set to Automatically

The Grace period for invoices and Hold period are defined by the Credit Terms which are assigned to the customer account:

  • Grace Period (days) - This field displays the invoice grace period starting when the invoice due period ends.

  • Hold Period (days) - This field displays the hold period starting when an account balance is below zero.

If a customer has one or more unpaid invoice(s), it means the customer owes money to the Provider and the account will be put on credit hold automatically in accordance with Grace and Hold periods, even if the Credit Limit has not been exceeded.

A Credit Limit allows services to be provisioned before payment, but this does not affect putting accounts on credit hold if they have old unpaid invoices.

The picture below shows when a customer account will be put on credit hold:

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The picture shows that both the 'Grace Period' and 'Hold Period' parameters from the Credit Terms are taken into account. Once both these periods have passed, the account will be put on hold automatically.

Search words:

how to not grace subscription

How to avoid Credit Hold status for a Reseller




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