What you’ll learn
- Define what counts as credit exposure.
- Make blocks and overrides explainable.
- Separate collection disputes from new service decisions.
Useful terms
- Credit limit
- The approved exposure ceiling under a documented policy.
- Ageing
- Outstanding amounts grouped by time since the relevant due date.
- Override
- An authorised exception with scope, reason and expiry.
Step-by-step operating routine
Verify the commercial identity
Confirm the contracting and paying parties, billing address, tax identifiers where relevant and authorised contacts. Use controlled access for sensitive documents. Match references to the correct party rather than similarly named branches.
Record or confirm- Legal party
- Payer
- Billing address
- Authorised contact
Agree payment and evidence terms
State due-date basis, invoice submission method, required POD and dispute procedure. A “30-day” term must explain whether it begins at invoice, acceptance or another agreed event.
Record or confirm- Term basis
- Due period
- Submission channel
- Required evidence
Define exposure calculation
Specify unpaid invoices, unbilled eligible work and other obligations included. Keep receipts, credits and disputes traceable. Avoid reducing exposure merely because someone marked a booking complete.
Record or confirm- Exposure components
- Credit limit
- Currency
- Dispute treatment
Set approval and block rules
Define the action blocked at each threshold and who can review it. Any override should state amount, affected work, reason and expiry. The workflow must still protect staff from accepting undocumented promises.
Record or confirm- Blocked action
- Approver
- Override amount
- Expiry
- Reason
Review and collect consistently
Review ageing with finance and account owners. Agree next actions, record customer commitments and follow actual receipts. Reassess limits when payment behaviour or customer circumstances change.
Record or confirm- Outstanding amount
- Due date
- Collection owner
- Commitment
- Review date
Exposure before billing
A customer has ₹80,000 unpaid invoices and ₹30,000 accepted unbilled work under a policy that includes both. Exposure is ₹1,10,000 against a ₹1,00,000 limit. A new job is held for authorised review. Recording a verbal payment promise does not reduce exposure; a verified receipt or approved policy decision does.
- Use the stated exposure components.
- Explain the hold to the responsible staff member.
- Retain an override separately from actual payment.
Exceptions and mistakes to avoid
- Do not count one unapplied receipt twice across invoices.
- A disputed invoice remains visible even when its collection action changes.
- Sales staff should not gain unrestricted access to payroll or bank details to evaluate a customer.
Credit review worksheet
Apply one documented policy consistently and retain the review date. Use separate rows for disputes and authorised overrides.
| Customer | Unpaid invoices | Included unbilled work | Approved limit | Next action |
|---|---|---|---|---|
| Customer A | 80000 | 30000 | 100000 | Hold new work for review |
Includes the illustrative row and blank rows. This is a planning worksheet, not a HiVAM import format. Keep your completed copy private; do not add credentials.
Check your understanding
Try answering first, then open the explanation. Use the worksheet and source records to practise the task.
Does a promise to pay reduce exposure?
No. Record the commitment, but reduce exposure only through a verified financial event or the documented policy treatment.
Why include unbilled work?
Where the policy requires it, accepted work has already created risk even though an invoice has not yet been posted.
Put it to work with HiVAM
Use these connections to explore the relevant product workflows. Confirm access in your deployed release; API capabilities require an integration or an available interface.
Customer credit and billing eligibility
Use the published API controls for credit and billing eligibility only after verifying their deployed behaviour.
Paid, To-Pay and TBB freight billing
Connect payment terms to the correct eligible quantities and payer.
Keep your learning moving.
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Try the workflow with your team.
Bring a representative job and an exception to a HiVAM demonstration. Review saved records, permissions and handoffs alongside the interface.