When does a customer exceed the credit limit?

After the credit limit is derived for the applicable customer or customer account, the credit limit amount is compared to the sum total of all activity belonging to the customer parent entity and any child entities, if applicable.

The available credit for the customer or customer account is calculated as:

Total Defined Credit Limit - Open Credit Authorizations - Open Receivables Balance = Available Credit

If after conversion to the credit currency the sum total is equal to or greater than the defined credit limit, then the customer has exceeded the credit limit and a credit review is initiated.