An order is put on credit hold if the order has violated a credit rule for the customer, credit is suspended for the customer, or if orders for the customer must be approved by a credit card company or factor. When an order is on credit hold, the products for the order cannot be picked. This prevents the order from being shipped to a customer that may not be able to pay for it. A credit manager can review orders on credit hold in Credit Task Management, and evaluate whether the orders can be released from credit hold.
An order may be put on credit hold for the following reasons:
The customer was inactive for a period of time
The amount of the order is too high for the specific order class
The payment terms of the order are not the default payment terms for the customer
The customer's credit score is too low
The customer has recently had an NSF payment
The customer is over their credit limit
The customer is over their minimum past due balance or percentage
All credit was suspended for the customer
The order is awaiting credit card authorization
The order is awaiting approval from a factoring institution