Credit limit

The article below pertains to Procure to Pay (P2P) for the following applications and/or module(s):

AP Automation

A credit limit may apply to an invoice. This is a negative discount, a surcharge for late payment of an invoice. The credit limit is visible in ISP-Invoice as a header field. If there is no credit limit on the invoice, this field will be filled with 0.00 by default.

The example below shows how ISP-Invoice calculates with a credit limit:

• This is an invoice with net costs of 11.250 EUR
• 21% VAT is added, which brings the amount to 2.362,50 EUR
• A credit limit of 50 EUR is added to this amount (excluding VAT), bringing the total invoice amount to 13,662,50 EUR
• The credit limit is not taken into account when determining whether an invoice is in balance.