Under the Credit Agreement section, Supervisors can set annual allowances for specific customers, includes the maximum total amount of all the pending invoiced proposals present across all stations:
Sample of use
The credit agreement allows the station to limit the line of credit for each customer, the credit agreement is used as described in the following example:
# - 1
Operation : Under this section, a Supervisor defines for a certain customer a credit agreement of $10'000 for the year 2012.
Credit status : Credit Agreement = 10'000
Invoiced=0
Approved=0
# - 2
Operation : In case the 'check customer credit status' is enabled, every time a Supervisor attempt to approve a proposal, the system would automatically check that proposal's total amount (e.g. 3'500) not exceeding (it must be equal or less) the current credit agreement (e.g. 10'000) of the related customer.
Credit status : Credit Agreement = 10'000
Invoiced=0
Approved=0
# - 3
Operation : After the Supervisor approves the proposal of $3'500 that has been elaborated for the customer in question, each time a proposal's event is scheduled, its contractual amount (e.g. $170) is subtracted from the customer's credit agreement and added to the approved total amount.
Credit status : Credit Agreement = 9'830
Invoiced=0
Approved=170
Credit Agreement = 6'500
Invoiced=0
Approved=3'500
# - 4
Operation : When a proposal's event is invoiced, its contractual amount (e.g. $170) is subtracted from the approved total amount to be added to the invoiced total amount.
Credit status : Credit Agreement = 6'500
Invoiced=170
Approved=3'330
# - 5
Operation : Once an invoiced event derived from the proposal in question is paid, the paid amount (e.g. $100) is subtracted from the invoiced total amount and restored to the credit agreement.
Credit status : Credit Agreement = 6'600
Invoiced=70
Approved=3'300
NB: Credit agreement can be used, for example, during the auto-approval, please refer to the Configuration | Parameters chapter.