--- title: "Customer Credit Terminology" canonical: "https://kb.myframeworks.com.au/space/FRAM/28382454/Customer%20Credit%20Terminology" format: markdown --- # Credit Data For further information, refer to [Credit References](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28382454/Customer+Credit+Terminology#Credit-References-%5BinlineExtension%5D) below. | **Term** | **Definition** | | --- | --- | | **Status** | Valid status types are **Active**, **Suspend** or **Hold**. The Stop Credit List report lists customers that have a credit status of **Suspend** or **Hold**.
The Status type: '**Suspend'** allows customers to trade with designated management approval. If a user tries to process an order or invoice for a suspended customer, the system issues a warning. This warning may be ignored and the order can be created however, the order has to be authorised by a POS Supervisor before it can be printed or released to invoice.
Type '**Hold**' indicates that the account is on 'Hold'.
> ⚠️ Where accounts are on Hold, there are additional options to indicate the type of hold by selecting the **Hold Status**. Valid Hold statuses' are **General, Permanent Stop, or Legal**. > ⚠️ > ⚠️ If the Hold Status is **General**, users can raise quotes or orders, but transactions **must be approved via Order Credit Approval**. When the user is creating the transaction, a warning is displayed, but they can continue to create the order.  > Macro (inline-media-image) > ⚠️ > ⚠️ If the Hold Status is **Permanent,** users are **not** allowed to raise quotes or orders, nor release orders to invoicing. > ⚠️ Where the Hold Status is **Legal**, the account is temporarily 'closed' and referred for Legal Action. Users are **not** allowed to raise quotes or orders, nor release orders to invoicing. | | **Risk Category** | Measured on a scale from 0-9, how great a risk this customer is considered by the company. This field should be updated as circumstances change for the customer There are no reports that look at this value. However, a query can be set up in Report Writer to produce a list of customers that belong to nominated risk categories. | | **Credit Limit** | A credit limit may be allocated to a customer and once the customer account reaches this limit, if you attempt to create an order in the Point of Sale or Sales Order Processing programs, credit approval is required. This is like having an automatically applied account suspension. Leave the field blank if this is a special account that you do not want to place a credit limit on. | | **Credit Age** | A credit age may be allocated to a customer in order to restrict them from placing orders when they have old debts outstanding. Valid responses are 0, 30, 60, 90 and 120 (days). If you attempt to type an order in the Point of Sale or Sales Order Processing programs, for a customer who has exceeded their allowed age, credit approval is required. Zero in this field means this type of credit checking is not active for this customer. | | **Credit Grace** | Type the $ amount by which customers may exceed their credit limit before orders require credit approval. This also serves as the maximum $ that a customer can have in ages greater than their **'Credit Age'** before they are considered outside their terms and are treated as though suspended. That is, how much can a customer short-pay their account, before being considered outside terms? For example, for a standard credit check:
- Customer 1's account has a credit limit of $1,000 and a Credit Grace of $50. Their balance due is $1,035. Grace dictates they don't go on Suspend as they haven't gone over $1,050 (Credit Limit + Grace). - Customer 2's account is 30 Days and they have a limit of $500 with a grace of $50. Their balance owing is only $25, however, it's due in 90 days. Grace applies here again. That is, the customer can have up to $50 outside the agreed terms before they don't go on Suspend. | | **Payment Terms** | The number of days from the statement date until payment is due from the customer. | | **Date Opened** | Used to hold the date the customer account was opened. | | **Bank Name** | Refers to the bank at which the customer's business account is held and is used when typing payments received from the customer and to produce a bank deposit list. | | **Bank Branch** | The branch at which the customer's business account is held is used when typing payments from the customer and prints on the bank deposit list. | | **Bank BSB No** | The BSB number for the customer's business account. | | **Account Name** | Used when typing payments received from the customer and to produce a bank deposit list. | | **Paid-up Capital** | To help protect your company against bad debts, you may think it necessary to find out the amount of upfront capital invested by the customer into their business. | | **Dir Guarantee** | Do you have current company directors guarantee to pay any debt outstanding if their company goes bankrupt? | | **Finance Source** | If this customer is financed by a recognised institution, what is the code for the financial institution? | | **Bank Opinion** | Was a bank opinion obtained regarding the customer credit rating? | | **Company Search** | Has a Company Search been performed on the directors of the company? | | **Approved By** | The user ID for the person who approved the credit details of the account. | # Credit References** **> Macro (anchor) | **Term** | **Definition** | | --- | --- | | **Reference Name** | The name of the company that gave the reference for the customer. | | **Date** | The date this customer started trading with the referee or the date that the reference was issued. | | **Days** | The number of days in which the customer paid their account held with the referee. | | **Monthly Amount** | The $ amount for the average monthly purchases of the customer from the referee. | | **BTC** | Type the rating given by the credit agency. | | **STIA** | Type the rating given by the credit agency. | | **CBN** | Type the rating given by the credit agency. | | **CCS** | Type the rating given by the credit agency. | | | > ❌ BTC, STIA CBN and CCS were Credit Rating organisations (no longer in existence) for businesses to conduct customer credit reference enquiries. For example, to find out if a proposed new customer was credit worthy. These fields hold the rating code given by the Credit Rating Agency. > ❌ Registered Credit Providers (That is, banks) are now mostly responsible for customer credit reference enquiries, therefore you can use these table entries to record you Bank's rating for the customer. |