Credit Limit Management in Marg ERP Software

Overview to Live Credit Limit’s in Marg ERP Software

Benefits & Advantages of Live Credit Limit’s Option in Marg ERP Software

Implementation/Process of Credit Limit Management in Marg ERP Software

Overview to Live Credit Limit’s in Marg ERP Software

As we all are aware that unmanaged credit limit can be a big loss for any type of business & if without any information the billing of the customer is forcefully stopped then there are high chances of losing that particular customer.

In Marg ERP Software, there is a very beneficial option “Live Credit Limit’s”. With the help of this Live Credit Limit’s option, the users can easily set the credit limit for their customers.

This option helps to receive timely payment and the users can also keep the track of the payments that is to be received from the customers.

In short it is a complete solution to resolve the above problem as the credits will be in limit and the user cannot lose their customers.

Benefits & Advantages of Live Credit Limit’s Option in Marg ERP Software

In Live Credit Limit’s; for operators the user can set primary limit in the ledgers of all the customers and for managers the user can set final credit limit which can be set in amount, bills or days.

In customer ledgers the user can also set that this limit should only indicate or must be strictly followed.

The credit limit will be managed but for those customers for whom the user has set follow strictly their billing will stop due to which when those customers will contact in order to purchase products & then when they will come to know that their credit limit has been crossed and their billing has been stopped because of this reason the customers will feel bad and will not purchase products from the user anymore.

On the other hand the user will not have any knowledge that some customers have stopped purchasing products because their credit limit has been crossed and will start purchasing goods/products from some other supplier.

So, in this way the user can also apply these credit limit settings for all its customers altogether in “Credit Limit Management” option.

With the help of this report the user can also generate a list of these customers, further contact them for a solution and provide temporary limit so that the users doesn’t lose those customers and business also runs smoothly.

So, in this way every Marg user can have 100% control over their credit limit and not lose their customers.

Implementation/Process of Credit Limit Management in Marg ERP Software

In order to use this option, firstly go to Masters >> Rate & Discount Master >> Credit Limit Management. 

Fig. 1.1 Menu View to Credit Limits Management Option in Marg ERP Software

Then a Credit Limit window will appear in which the user can set primary and credit limit for all customers all together.

Fig. 1.2 View of Credit Limit Management in Marg ERP Software

Show Parties Billed Between: This means that the user needs to view the report of those customers whose billing has been done in the last 0-180 days.

Sales Value Calculate From: Suppose the user mention date as 8-12-17.

Calculate for Days: Suppose mention here 30 which means that Marg Software will calculate the sale of customers 30 days i.e. before 8-12-17.

Primary Limit in % of Sale & Credit Limit in % of Sale: Suppose the user set 25% as primary limit and 35% as credit limit. So, whatever sale has been done 30 days before this particular date on that much sale 25% primary limit will be set and 35% credit limit will be set.

In short it means that whatever sales has been done between these specified days on that much sale 25% Primary Limit will be set and 35% credit limit will be set.

**The Primary Limit is basically indicated to operators during the billing of customers. So, when the primary limit of the customer is crossed then the operator gets an indication that the primary limit of the customer has been crossed. If the owner wants then he can provide password to the operator.

In Marg ERP Software there is a facility that after crossing the primary limit if the owner wishes then he can give authority to the user to continue billing till credit limit.  For which the owner can set a password and provide it to the user.

This provision is applicable only when the user has set the limit as follow strictly.

Bill Nos in the same Formula: If the user needs to apply this formula according to number of bills then set this to “Yes” else “No”.

Highlight Limit Difference: It means the limit that user has already set in the customer’s ledger and the formula that is being applied according to that whatever difference will arrive that difference will be reflected by the software.

For e.g.: The user define here 15%. If there is a difference of 15% between the limit that is being set in the customer’s ledger and the limit that is being advised according to this formula so that will be highlighted in red and green colour in the report.

Filter for Indicate /Stop:  If the user needs to filter all those customers on whose ledger details “only indicate” has been set then u will select “Only Indicate”.  So, only those customer list will appear on whose ledger only indicate is being set.

Similarly, the user can also filter only those customers on whose ledger Follow Strictly is set and Stop Billing and if the user needs to filter all the customers then select “All”.

Filter for Auto/ Manual: Here select the party which the user needs to filter i.e. on which Auto mode is selected or Manual mode is set.

Filter for Data: If the user needs to filter those customers whose limit has been crossed then select “Limit Cross” option. If the user needs to filter those customers whose limit is mismatched according to this formula then select “Limit Mismatch”. And if the user needs to view all customers then select “All”.

Minimum Default Credit Limit: Through this option the user can set the default minimum credit limit. Suppose the user sets here 2500 and if anyone’s limit is less than 2500 then the limit will automatically get set to 2500.

The user can also set the Default number of bills and Default number of days.

Maximum Default Days: Suppose the user has set 60 for a particular customer in days & requires that max. Days limit should not exceed 45. So, with the help of this option the user can set 45.

Then click “Enter”. The user can view the filtered list of the customers (as shown below). Marg Software displays here all details of customers. For e.g.: The user can view here the details of B. Lal & Sons in which it is showing 146 i.e. this customer has not done any purchase since last 146 days. Next it is showing 70327 which is the outstanding of this particular customer. There are 9 bills which is being generated for this customer.

Then is days i.e. there are some bills of this customer which was created 248 days before and its payment is not received till now. The user has set manual mode for this customer.

Fig. 1.3 View of Credit Limits Customer List in Marg ERP Software

Then software is suggesting about the credit limit and primary limit i.e. how much credit limit and primarily limit must be set for this particular customer. The user can view that the credit limit of this customer is set as Rs. 1000 but software is suggesting that the limit must be set for 2500.

Similarly, the user has already set credit limit of 1 bill but software is suggesting to set credit limit for 3 bills. In this way the software is suggesting to give 7 days’ limit to the customer instead of 0 day.

Also, the user must set the primary limit of 2300 instead of 500. Similarly, the user has already set primary limit of 0 bill but software is suggesting to set primary limit for 3 bills. In this way the software is suggesting to give 7 days’ primary limit to the customer instead of 0 day.

Fig. 1.4 View of Credit Limits Customer List in Marg ERP Software

Now, the software is showing the difference between the limit that the user has set on the ledger of this customer and the limit that is advisable according to the limit that is being set which is highlighted in Green colour.

Suppose the user has set Rs. 70,000 limit for this customer in his ledger but according to what the user has set in advice credit limit window the limit that should be set is Rs. 62,800.  If the user needs to change the limit to advisable limit then press the“+” key. So, in this way the limit of this 

Fig. 1.5 View of Credit Limits Customer List in Marg ERP Software

In order to view the ledger details of the customer, press “Enter” and select “Credit Limits” option.

Fig. 1.6 Process to View of Ledger details of Customer in Marg ERP Software

The user can view now that the credit limit is up to Rs. 62,800 or up to 4 bills and the primary limit is up to 44,900 or up to 3 bills. And the user needs can change the other details as well.

Fig. 1.7 View of Ledger details of Customer in Marg ERP Software

Then is Limit Manual/ Auto: For now it is set to “Manual”.  If the user needs that automatically on restarting the software the limit of this customer updates to advisable limit, then the user will set this to “Auto” and if the user needs to manually update the limit to advisable limit then set this to “Manual”. Now, press “Esc”.

Fig. 1.8 Limits Manual/Auto option of Customer in Marg ERP Software

There are few short cuts key in the software i.e.

F3: Used to edit the ledger details. So, by pressing F3 function key the user can switch to the ledger details of the customer. 

Fig. 1.9 Editing the Ledger details in Marg ERP Software

F4: Used for filter. If the user needs to remove the filter that has been set on the adjust credit limit window and want to view all the customers then press F4. And to undo that the user will again press F4.

F5: Used to change index.  If the user needs to arrange the customer list alphabetic wise then press F5.

+ & - Key:  The user can change the limit to advisable limit and if the user needs to undo that then press - key.

F6: All with advice. If the user needs to change all the limits of all the customers to advisable limit that is highlighted in green then press F6.

F7 & F11 Key: For strictly. Suppose right now the user can view that the customer that is currently being selected on that customer “Indicate” is set. If the user needs to change it to strictly follow then press F7 & similarly if the user needs to set on indicate then press F11 key.

F8- Auto. If the user needs to change the selected customer setting from Manual to Auto then press F8

F9: Manual: If the user needs to change the mode of selected customer from Auto to Manual then press F9 function key.

On pressing F10 function key, Marg ERP software is indicating that the changes will be done on the ledgers of these customers. The user will then click on “Close” to continue.

Fig. 1.10 Process to update customers’ ledgers in Marg ERP Software

Then click on “Yes” to update the changes. So, in this way the changes will be updated.

Fig. 1.11 Saving the updated customers ledgers in Marg ERP Software

Now let’s see that how the user can view Live Credit Limit report. For that go to Transactions>> Sale >>Select Live Credit Limit option

Fig. 1.12 Menu View to Live Credit Limit’s Option in Marg ERP Software

Show Parties Billed Between: Suppose the user will specify that the user needs to view a list of those customers who has done purchase between 7-90 days.

Sales Value Calculate From & Calculate for Days: Here the software will calculate the sale 90 days from this particular date (as shown below). Then enter.

Fig. 1.13 View of Credit Limit Window in Marg ERP Software

These are those customers list who haven’t done any purchase from the user since the last 7 days because the limit has been crossed. The user can contact these customers.

At the side of the screen the Software is displaying all the information and status i.e. customer’s mobile number, their Outstandings, etc.

Fig. 1.14 View of List of Crossed Credit Limit Customers in Marg ERP Software

The user can give Temporary limit to the customers by pressing enter here, open their ledger and view it, view their outstanding and their credit limit.

Fig. 1.15 Process to set Temporary Limit of Customers in Marg ERP Software

The user will select 1^st option i.e. “Temporary Limit” to give temporary limit to the customers. Then the user will specify how much amount limit the user is extending to and mention till which date the payment must be done.

Then select whatever temporary limit i.e. whether it is for “One Time” or “Multiple”. It means if the user sets for “One Time” then only one bill of RS. 10,000 will get generated and if the user sets “Multiple” then the user can generate multiple bills for the limit of up to Rs. 10,000.

Fig. 1.16 Process to set Temporary Limit of Customers in Marg ERP Software

As the user will press enter, this customer will get highlighted in violet colour i.e. it means that temporary limit has been given to the customer and at the side of the screen of the software the temporary limit will also get displayed.

Fig. 1.17 Process to set Temporary Limit of Customers in Marg ERP Software

If the user has selected stop billing for any of the customer then it will be indicated with red colour.

If the user needs to change it then press enter on itand then change it from here. (as shown below)

Fig. 1.18 Process to change Closed Billing of Customer in Marg ERP Software

Fig. 1.19 Process to change Closed Billing of Customer in Marg ERP Software

If the bill of some customers is less than an amount like 20, 25, etc. and the user needs to clear their outstanding then the user can press F11 function key and generate voucher and clear their outstanding.

The user can clear their outstanding from here by generating its entry in short & excess or cash received. In order to do that press F11 function key.

Fig. 1.20 Process to clear outstanding of Customer in Marg ERP Software

Then the user will enter on “Journal”. If the user requires to pass the entry of short and excess or on receipt or if the user needs to pass the entry of cash received. So, in this way the user can pass an entry for short & excess.

Fig. 1.21 Process to pass entry of Short & Excess in Marg ERP Software

Fig. 1.22 Process to pass entry of Short & Excess in Marg ERP Software

There is one shortcut key F6 i.e. the updates that the user has done in this window, press F6 to refresh it in this window.

Then is F10: Save changed limits. It means whatever changes the user has done on this window, press F10 in order to save them.

Finally, the user will enter on “Yes”.

Fig. 1.23 Process to Save the Changes in Marg ERP Software