There is a common practice in some business domains where the sales are only on a cash basis. The customer pays an amount of money up front, and this payment creates a balance in the customer account. This account is allowed to receive only those goods that are covered by this amount of money, then the settled sales invoices are calculated against advanced collections.
Microsoft Dynamics 365 for Finance and Operations manages the customer credit limit on the customer level, and there are two ways that affect customer balance additions, partly where there is an increase in the customer balance, which consists of a cash transaction (customer advanced collection) and a non-cash transaction credit limit. The second ...
