You can specify a credit limit for each vendor in the Vendors form. When a purchase order, packing slip, or purchase invoice is updated, Microsoft Dynamics AX will alert you if the vendor's credit limit is exceeded.

The predefined credit check values are:

• None- No credit limit check is performed

• Balance- Credit limit check equals the sum of all posted invoices.

• Balance+Packing slip- Credit limit check equals the sum of all posted invoices and all packing slips.

• Balance+All- Credit limit check equals the sum of all posted invoices, all packing slips, and all purchase orders.

Most companies do not perform a credit limit check for their suppliers. If, however, you are familiar with the credit limit that your vendor offers you, it can be helpful to be advised when that credit limit is exceeded.