Introduction to Credit Lines
Credit lines in Appliance.io provide a flexible payment option for eligible customers, allowing them to place orders and defer payment. This feature supports larger-scale purchases, commonly used by companies or contractors.
Who Can Use Credit Lines?
Individual Customers: Credit lines can be set up for individual customers, though they are typically used for commercial or bulk purchases.
Company Customers: Credit lines are frequently tailored to builders or corporate clients, considering purchasing volume and payment cycles.
Employee Access to Credit Lines
Setting Up Credit Lines: Only authorized employees have permissions to establish credit lines for customers.
Using Credit Lines: Once established, any employee can process payments through the credit line for the relevant customer.
Credit Lines and Payment Structures
Commission Structures: Credit lines impact commission payouts depending on the business’s structure:
Paid-in-Full Commission: Employees may receive commission upon order creation, even before the order is completed.
Delivery-Based Commission: Commission is paid out after delivery, though delays beyond 30 days may require special handling.
Credit Lines for Customer Adjustments
All orders in Appliance.io require a form of payment to proceed. In situations involving customer adjustments—such as for damaged products or service issues—a credit line may be applied to facilitate these transactions.
Credit Lines in Onboarding
The credit line feature assists businesses during onboarding by recording outstanding orders, supporting accurate accounts receivable tracking. The accounts receivables aging summary report further aids in monitoring overdue payments and managing receivables efficiently.
Setting up a Credit Line
First, identify the customer in need of a credit line.
Navigate to the Customer Details page by selecting the customer from any quote or order.
Look for the credit lines tile.
The credit line tile initially shows $0 values when no credit is assigned.
Click the Edit button to open the popup menu.
Enter the Credit Amount
Determine the Credit Amount:
For company (builder) customers, the credit amount should align with their typical purchasing needs.
For individual customers, the credit should match the immediate purchasing requirements.
Input the Credit Limit:
Navigate to the customer’s profile in Appliance.io. Enter the desired credit amount in the Credit Line section.
Select Payment Terms:
The default term is Net 30, meaning payment is due within 30 days.
Adjust the terms if needed based on the customer’s arrangement:
Net 30 – Payment due within 30 days.
Net 60 – Payment due within 60 days.
Net 90 – Payment due within 90 days.
Save the Terms:
Once you’ve selected the appropriate payment terms, click Save to finalize the setup.
Finalize Credit Line Setup
Ensure the setup is reviewed and approved by a manager if required. After approval, the credit line will become active and available for use.
Applying Credit Line Payments
Check Available Balance:
The available credit balance will appear on the Customer Details page. It will also be visible during checkout when processing payments.
Apply Credit Line to a Quote:
During the checkout process, select Credit Line as the payment option. The system will automatically validate that the order amount is within the available credit limit.
Complete the Payment:
Once the payment is applied, the remaining balance will be updated both in the customer’s profile and accounts receivable.
Track Credit Usage
Monitor Credit Line Balances:
View the customer’s available credit and outstanding balance on their profile page. Use the Accounts Receivable Report to manage balances and ensure timely payments.
Once the salesperson has applied the credit line payment to a quote, it automatically converts to an order.
Paying back Credit Lines on orders
Navigate to the order containing the credit line.
The credit line tile will contain a “+ Pay Credit Line” button. This button will be used when the customer is ready to pay at a later date. This button behaves identically to the “Apply Deposit/Payment” button.
The “NOT PAID” icon will be present throughout the order till the credit line has been paid off.
Once the payment has been applied to the credit line. That balance due will update on the order and the customer page.
If the credit line has been paid off in full the tile will show a “PAID” icon and will contain the payments made against that credit line.
It is common for a customer to pay off multiple credit lines at once, usually by check. A single check can be used to pay off multiple credit lines. This split will need to be calculated by hand.
Any employee can navigate to the customer page to see how much credit is currently in use by that customer.
Managing Credit Lines
Assign Responsibility for Payment Collection
Monitor Credit Line Orders:
Once an order is delivered, it’s essential to track when payments are due.
Assign Responsibility:
Designate an employee or manager to oversee payment collection for credit line customers.
Use the Accounts Receivables Aging Summary Report to track outstanding payments and due dates.
Ensure Timely Payments
Track Delivery Status:
Payments should align with delivery dates, ensuring the order is paid within the agreed terms (e.g., Net 30).
Monitor Credit Line Usage:
Sales staff can view and apply available credit during order processing.
After delivery, payment tracking responsibility shifts to a manager or designated staff to follow up on outstanding balances.
Use the Accounts Receivables Aging Summary Report
Access the Report:
Go to the Accounts Receivables Aging Summary Report to view all outstanding credit line balances.
Monitor Aging Balances:
Review overdue balances and take appropriate action for customers approaching their payment deadlines.
Follow Up on Outstanding Payments
Manage Customer Follow-Ups:
Use the report to prioritize customers with overdue balances.
Reach out to these customers to ensure payment is made promptly.
Accounts Receivables
To find this report select “Reports” from the home bar across the top of the page.
The Accounting section on the right contains the Accounts Receivables.
The filters across the top of the page can be used to filter the results shown below.
Each row will contain the relevant info for that order. The right side will show the age and total of the balance.
Rows can be clicked to quickly open the order in a new tab.
Removing/Reducing/Increasing a customer's Credit Limit
Start by returning to the customer details page for that customer.
Only a manager will be able to complete the next steps.
Click the Edit button on the credit line tile.
The credit limit can be adjusted to a higher amount without restrictions from the system.
The credit limit can also be adjusted to a lower amount, provided it is not less than the current amount in use. If there is no active usage of the credit limit, it can be set to zero to disable credit line access for that customer.
Click "Save" to apply the changes.