Check the dealer’s invoice balance, uninvoiced commitments, overdue bills and disputes at one cut-off. Count each order and confirmed receipt once. Apply your own approval policy; a credit-limit calculation does not authorise dispatch.
Check the dealer before promising dispatch
“Purana payment pending hai, par maal aaj chahiye.” Sales wants to release the order. Accounts needs the earlier bills checked.
Use one review for the same dealer, company and cut-off time. Keep customer codes and order references beside the amounts.
Check outstanding invoices, overdue bills, pending commitments and the new request. Use the same currency and payable-value basis, including applicable charges.
Count each commitment once
Start with a clearly defined invoice balance. Add approved order amounts that this balance does not already include.
An invoiced order awaiting dispatch may already appear in outstanding invoices. Do not add its value again merely because dispatch remains pending.
A partly invoiced order needs a split: invoiced amount and remaining uninvoiced commitment. Link both to the original order line.
| Record | Amount | Treatment |
|---|---|---|
| Outstanding invoices | ₹1,40,000 | Includes ₹20,000 invoiced goods awaiting dispatch |
| Other approved, uninvoiced orders | ₹30,000 | Add once; excludes the invoiced ₹20,000 |
| New order requested | ₹60,000 | Add once; not included in the other orders |
| Exposure including this request | ₹2,30,000 | ₹1,40,000 + ₹30,000 + ₹60,000 |
| Example owner-approved limit | ₹2,00,000 | Illustrative policy, not a recommended limit |
| Amount above that limit | ₹30,000 | A review input, not an automatic decision |
Adding the invoiced ₹20,000 again would incorrectly show ₹2,50,000. Pending dispatch is a physical status, not another receivable.
Before the new request, this example already commits ₹1,70,000. Its remaining limit headroom is ₹30,000, subject to the other checks below.
Keep overdue bills and disputes visible
The following amounts are already inside the ₹1,40,000 invoice total. Do not add them again.
| Item | Recorded fact | Next check |
|---|---|---|
| Bill INV-17 | ₹25,000; due 10 September; review date 22 September | 12 calendar days past due; check agreed terms |
| Bill INV-21 | ₹30,000 balance; dealer disputes ₹5,000 | Record dispute evidence and response owner |
| INV-21 remainder | ₹25,000 outside the stated dispute | Confirm the dealer's position; silence is not agreement |
A disputed ₹5,000 does not automatically become an approved adjustment. Keep the recorded balance and disputed portion separate until review resolves them.
Name the person checking the dispute and the next response date. Do not hide it by reducing the balance without a supported adjustment.
Separate confirmed receipts from promises
A promise to pay ₹40,000 tomorrow leaves today's exposure unchanged. Keep it as a commitment with a follow-up date.
Use this separate receipt example before changing the original ₹2,30,000 exposure.
| Starting figure | Receipt status | Review treatment |
|---|---|---|
| ₹1,40,000 invoice residual | ₹40,000 confirmed for this dealer but not allocated | Show the receipt separately; reconcile ownership and allocation |
| ₹1,00,000 refreshed balance | The same ₹40,000 already appears in that balance | Do not subtract it again |
| ₹1,40,000 invoice residual | Dealer says paid; accounts has not confirmed it | Keep the receipt unresolved; no assumed reduction |
If accounts confirms the receipt and your policy recognises it, adjusted exposure can be ₹1,90,000. That equals ₹2,30,000 minus ₹40,000, once.
From the refreshed balance, it is ₹1,00,000 + ₹30,000 + ₹60,000 = ₹1,90,000. Never subtract the same receipt from both calculations.
Do not assign an unallocated receipt to a particular bill without supporting references. A lower exposure does not establish which overdue invoice it settles.
If the two report definitions differ, use the Empire total reconciliation guide before approving from either number.
A limit check does not approve the order
Your policy may require separate checks for overdue bills, disputes and changed payment terms. Meeting the limit does not override them.
Microsoft's credit-management documentation treats overdue days, overdue amounts and order values as distinct checks. Its configurable rules do not define your business's approval policy.
ACCA's receivables guidance separates credit terms, monitoring and collection. Set your thresholds and exception rights through your own approval process.
Give dispatch a scoped approval
The owner may require payment, approve less, hold release or authorise an exception. Record the specific order, permitted value or quantity, conditions, approver and expiry.
| Approval record | Value | Control |
|---|---|---|
| AP-22 for new order SO-60 | Up to ₹30,000 | Valid today after accounts completes the review |
| First authorised release D-01 | ₹20,000 | Link once to AP-22 and SO-60 |
| Unused approval | ₹10,000 | Check before any further release |
| Unapproved order remainder | ₹30,000 | Needs a separate decision, not this approval |
The new ₹60,000 request comprises ₹20,000 released, ₹10,000 unused approval and ₹30,000 unapproved. Unused approval is not another order commitment.
Assign one person to update the shared approval record before each release. Two teams must not each treat the original ₹30,000 approval as unused.
A shared sheet needs this manual control; it cannot guarantee automatic duplicate prevention. Recheck changed quantities, prices, terms or expired approval before another release.
When approved goods become invoiced, move their value into the invoice balance. Remove the corresponding uninvoiced amount in the same review; never count both.
Bring one dealer-balance question
Ask whether your records can answer it. Tell us your software and which balance or order records you maintain.
Empire is the current connector. We must check support for your question and records. Dhandha GPT does not automatically approve credit or release dispatches.
Use the partial-dispatch tracker after approval. Use payment reminder templates when a confirmed balance needs follow-up.
Questions you might ask
Should I add invoiced goods awaiting dispatch to credit exposure?
Not again if their value already appears in the invoice balance. Add only the uninvoiced commitment, using the same company, currency and cut-off.
Does an unallocated receipt settle an overdue invoice?
Not automatically. Confirm the dealer and receipt, then check allocation references. Do not subtract it again if the starting balance already includes it.
Does staying within the credit limit approve dispatch?
No. Apply the other checks and record the authorised order, amount, conditions and expiry. Track each release against the remaining approval.