The ITC Consult team, a certified Odoo partner in Bulgaria, has developed a new Credit Limit module that significantly extends the platform’s standard capabilities for credit risk management, sales operations and financial control. The solution has been designed as a universal tool applicable across various industries and can be tailored to the specific business policies and financial rules of each organization.
The Odoo ERP platform offers basic credit limit verification functionality, which is primarily informative in nature. However, the standard system lacks key mechanisms for effective credit control, such as automatic sales blocking, approval workflows, overdue debt management and minimum sales value restrictions. ITC Consult’s new module addresses these limitations by transforming credit control into an active management process.
Real Credit Risk Control Within the Sales Process
The newly developed solution introduces a much more detailed and dynamic approach to credit limit management. In addition to the standard amount-based verification, the module also monitors the maximum allowable overdue days and both parameters can trigger a sales restriction or approval process.
The system allows companies to define a global credit limit that applies to customers without individual settings, as well as customer-specific credit limits. This provides a flexible yet controlled credit policy tailored to the actual risk profile of each business partner.
Automated Checks and Approval Workflow
When creating a sales order, the system automatically checks several key factors:
- the customer’s current outstanding balance
- the projected credit limit utilization
- overdue invoices and overdue days
- the minimum allowed sales value
If any of the predefined thresholds are exceeded, the system can block the sale and initiate an approval process. This process includes the automatic creation of an approval request, which is sent to a predefined group of authorized users responsible for making the final decision.
The responsible stakeholders receive notifications both within the system and via email, ensuring quick response times and full traceability of all decisions.
Enhanced Visibility and Financial Risk Control
One of the module’s key functionalities is the enhanced visibility of a customer’s financial status directly within the sales order. Users have access to information such as:
- unpaid invoices
- due dates
- accumulated liabilities
- current credit balance
This eliminates the need to access the accounting module and enables faster and more informed sales decisions.
Managing Different Types of Credit Restrictions
The module combines several control mechanisms into a single system:
- amount-based credit limits
- maximum allowable overdue days
- minimum sales value requirements
Each of these parameters can be configured globally or at the customer level and can either trigger an approval workflow or function solely as an informational check.
This flexibility allows companies to implement different credit policies based on customer type, risk level and business model.
Transparency, Traceability, and Operational Control
All actions within the system are logged and fully traceable, including:
- who created the approval request
- who approved or rejected it
- when the action was performed
- the specific risk or reason behind the decision
Additional visual indicators and statuses such as Pending Approval, Approved and others have been added to the sales list, allowing users to easily filter and manage all transactions that require attention.
A Universal Solution for Credit Policy Management
The Credit Limit module has been designed as a universal solution suitable for various industries, ranging from wholesale and distribution businesses to companies operating with subscription-based or recurring deliveries. It enables organizations not only to control financial risk but also to optimize sales processes through automation and clearly defined approval rules.
With the development of this module, ITC Consult expands Odoo’s standard capabilities by providing companies with a practical tool for managing credit risk, reducing overdue payments and improving financial discipline throughout their sales operations.