How to set up the credit limit for customers?

Yes, Diego. You can set up credit limits for each customer in QuickBooks Online (QBO). I'll provide the details below.

To set up a credit limit for customers in QBO. First, navigate to the customer's profile.

Here's how:

1. Go to the Sales menu, then select Customers.
2. Locate and choose a customer from your list.
   
   
3. In the customer's profile, click on the Edit button.
   
   
4. Scroll down to the Payments section.
5. Enter the desired amount in the Credit Limit field.
6. Once done, click Save.
   
   

You can also refer to this article to if you want to run reports to check for your customers' outstanding balances, such as the Customer Balance Detail or Accounts Receivable (A/R) Detail: Run a report in QuickBooks Online.

Moreover, to enhance your QuickBooks experience, consider partnering with our QuickBooks Live Expert Assisted team. These certified professionals specialize in optimizing the reclassification process and offer expert guidance to ensure your financial records remain accurate and up to date.

Should you have other questions about credits, don't hesitate to revisit the Community. We're always here to help. Stay safe!

Hey Diego! I ran into the same issue with customers going over their credit limits, so I built a tool to solve it — it’s called Blume (useblume.com).

Blume connects to QuickBooks Online in minutes, pulls all your customer balances, compares them to their credit limits (each customer being customizable), and sends automatic email alerts when they’re over. It also tracks overdue balances and sends smart reminders (since QBO’s default reminders are often ignored). Plus, it shows each customer’s average days to pay, helping you stay ahead of cash flow issues.

Feel free to check it out — I’m happy to give you 2 free months if you’d like to try it out!

Here's a video! https://youtu.be/sfpGf1FIGWg?si=0avi_jwQ1NtoYX-1

I can't find this option in my QuickBooks.

Hi there, @cks_sandhu.

The credit limit feature is exclusive to the QuickBooks Plus and Advance plans.

If you're already subscribed to one of these plans but still can't find the feature, I recommend clearing your browser’s cache and Intuit-specific cookies. This will help remove any unnecessary data that could be affecting the platform’s performance.

Also, you can try using a different supported browser to rule out any compatibility issues or data conflicts that could be impacting the availability of this feature in the system.

Please let us know if you have any additional questions.

Entering credit limits in QuickBooks is a good first step, but it doesn’t actually track them — it just assigns a value. With Blume (useblume.com), you can enter custom credit limits for each customer, and the system will automatically monitor balances and send alerts to customers when they’re over the limit. It’s been a game-changer for us in managing AR more proactively.

@DeFeoMaterialsLLC 

"Entering credit limits in QuickBooks is a good first step, but it doesn’t actually track them — it just assigns a value."

That's not true. QBO tracks the limit and alerts you when you create an invoice that causes the balance to exceed their A/R balance limit.  Here's the alert that pops up:

Correction:

QBO tracks the limit and alerts you when you create an invoice that causes the balance to exceed their A/R balance credit limit.