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Credit and Commitment Limit

Hi friends,

Is there anyone who can give me a comprehensive definition of Credit and commitment Limits?

Please allow me to hear you.




Hello Roberts,

In addition to Max's answer, here is the explanation about credit limit:

"Determines whether or not to restrict the creation of sales documents for customers and prompt a warning message according to the specified CreditLimit;of the customer. The credit limit applies to specified types of documents (A/R Invoice, Delivery, and Sales Order)."

The commitment limit is payable limit, it means that total or limit payable from BP is calculated based on invoice, un-deposit check, etc.


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