Credit Control Management

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This is one of the important aspects of Purchase Management. Purchases involve expenses. Expenses can be either dealt in cash or in credit. If the purchases are made on credit it would mean that such payments to the vendors are to be settled at a later date or after a specific time period. INTEGRA provides for Credit period and credit amount setting to help utilize the fund and inventory properly. Setting the credit period is important as for that period of credit, company can use that fund as its working capital and thus can deploy the funds in other areas of business. However it will be unsettling for the company if it does not get information about due payments in advance. INTEGRA ERP not only gives bill-wise payments due against each vendor but also provides information in advance about the bills that would be coming up for payments. INTEGRA ERP further provides information on (1) the credit limits available from each vendor, (2) how much credit has been utilized against each bill and how much credit limit is pending to be utilized. This information will enable the Company to leverage the fund outflow and take optimum advantage out of the available credit limits. To help company streamline its payments and enforce checks and balances in the fund flow, INTEGRA ERP has also provided for Purchase Ageing which report will show in real time the details about upcoming payments against purchases. Accordingly company can seek a discount for early payment or in case of cash crunch ask for extension in credit limits. We shall now see how it is done in INTEGRAP ERP.

Credit control in Purchase Management is initiated by setting credit limits and credit period for each vendor at the time of Vendor Creation.

Set the credit limit - Enter the Credit limit Amount and Credit limit Days in the Text box as in figure below:

This will reflect in Purchase aging report which will show in real time the Bill details, credit limits available and balance and due dates of Payments for a particular period.