What is credit check in SAP SBO - SAP Business One?

SAP Term: credit check

• Component: SBO

• Component Name: SAP Business One

• Description: The audit of a customer's credit limit and past financial activity in relation to that limit.

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• Key Concepts: 
  Credit check is a feature in SAP Business One (SBO) that allows users to check the creditworthiness of customers before approving sales orders. It helps to ensure that customers are able to pay for their purchases and reduces the risk of bad debt. The credit check is based on the customer's credit limit, payment history, and other factors. 
  
  How to use it: 
  To use the credit check feature in SBO, users must first set up a customer profile with their credit limit and payment history. Once this is done, users can then run a credit check on any customer before approving a sales order. The credit check will provide an indication of whether or not the customer is able to pay for their purchase. 
  
  Tips & Tricks: 
  It is important to regularly review customer profiles and update them with any changes in their credit limit or payment history. This will ensure that the credit check is accurate and up-to-date. Additionally, it is important to review the results of the credit check carefully before approving any sales orders. 
  
  Related Information: 
  The credit check feature in SBO can be used in conjunction with other features such as payment terms and discounts to help manage customer accounts more effectively. Additionally, it can be used to help identify potential customers who may be able to pay for their purchases but have not yet been approved for a sales order.