Accounting · Odoo glossary

Credit Management

Credit management controls the risk of selling on credit by evaluating customers, setting limits and terms, and reviewing overdue exposure.

Definition

In general ERP practice

Credit management controls the risk of selling on credit by evaluating customers, setting limits and terms, and reviewing overdue exposure. It combines commercial policy with collection evidence.

In Odoo

Odoo receivables and overdue follow-up provide the accounting tools for customer credit control. The documented Point of Sale Customer Account workflow can warn when a maximum sales credit is reached, but the warning does not prevent the sale. A required hard approval block needs its own configured control.

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