Automatic Credit Hold Setup

This article explains the process of automating credit holds for past-due accounts. It's crucial to ensure compliance with local and regional regulations when applying credit holds and managing charges for accounts under such restrictions.

Permissions

The following permissions are required to set up an automatic credit hold:

Account Class Setup

Pathway: Setup > Accounting > Account Class

Automating credit hold status is managed at the account class level. Review the settings in both the Status Management and Finance Charges & Other Fees tabs when configuring auto-credit hold.

Status Management

Finance Charges and Other Fees

System Options Setup

Pathway: Setup > System > System Options

If an account is placed on credit hold, an automatic notification can be sent to account contacts based on system settings. This is an optional feature that can be enabled as needed.

Account

Service Code Setup

Pathway: Setup > Services > Service Code

In Service Code Setup, the default setting for 'Bill While on Credit Hold' is 'Yes.' To prevent billing specific services while on credit hold, review and update the relevant service codes to 'No.'

Permission ID	Permission Name
22	Setup \ Accounting
120	Setup \ System and Security

Field	Description
Enable Automatic Status Update	Select 'Yes' to enable the system to automatically update an account's status. This setting applies to both applying and removing auto-credit hold and other automatic status updates.
Auto Credit Hold Past Due Days	Specifies how many days a single invoice must be past due before auto-credit hold is applied. An account requires just one past-due invoice for the credit hold to take effect. Note: 'Auto Credit Hold Placement' must be enabled for settings here to apply.
Auto Credit Hold Minimum Past Due Amount	Specifies the monetary amount an account must be past due before an auto-credit hold is applied. Note: 'Auto Credit Hold Placement' must be enabled for settings here to apply.
Auto Credit Hold Placement	Setting that directly applies to placing a past-due account on credit hold. Select 'Yes' to allow. Note: This field must be enabled for 'Auto Credit Hold Past Due Days' and 'Auto Credit Hold Minimum Past Due Amount'.
Auto Credit Hold Removal	Setting that directly applies to removing an account from a credit hold status after the past-due balance has been paid.
Status Update Time	Indicates the time the system will process status updates. It’s recommended to schedule this during off-hours when system activity is low and to avoid disrupting operations.
Run Daily Auto Apply	Enables a daily check for unapplied payments and credits on an account and applies them to the account's oldest invoice balances first.

Field	Description
Credit Hold Placement Fee	If a fee should be applied when an account is placed on credit hold, enter the fee amount here.
Credit Hold Placement Fee Charge Code	If a credit hold fee is applied, select the charge code to be used for billing. Additional information about charge codes can be found here: Charge Code Setup.