# Order Credit Hold Release Checklist > Source: https://netray.co/tools/order-credit-hold-release-checklist > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer A step by step checklist for deciding whether to release, partially release or keep a sales order on credit hold. ## Category cost-finance ## Audience - Customer service manager - Credit analyst - Order management ## Tool **Kind:** checklist **Groups:** #### Confirm the hold **Items:** **Text:** Identify the hold reason: over limit, past due, terms expired or manual block **Critical:** true Check the order is not a duplicate of one already released **Text:** Confirm the bill-to account and legal entity are correct **Critical:** true Note the order value, promised date and customer priority Check whether the hold was triggered by a data error such as a wrong terms code Record the time the order went on hold to measure delay #### Review exposure **Items:** **Text:** Compare total open orders, shipped not invoiced and open invoices to the credit limit **Critical:** true **Text:** List invoices past due and their age buckets **Critical:** true Check unapplied cash and credit memos that may reduce the balance Review disputes holding up payment and who owns them Check recent payment behavior against stated terms Review any credit insurance cover and its limit for the customer Check whether the customer is part of a group with shared exposure #### Decide and approve **Items:** **Text:** Choose an action: release, partial release, require prepayment, or keep on hold **Critical:** true **Text:** Confirm the approver has the authority for this exposure level **Critical:** true Record the reason and approval in the order notes or ERP history Set a temporary limit increase with an expiry date if applicable Escalate to finance if the customer is more than the agreed days overdue **Text:** Check sanctions and restricted party status for new or changed accounts **Critical:** true Confirm the product is not on a long lead build where deposit terms apply #### Communicate **Items:** **Text:** Tell the customer which payment or document is needed to release the order **Critical:** true Share the new expected ship date once the hold is cleared Inform sales so they can support the conversation Tell the warehouse and planning when an order is released or held Agree a payment plan in writing if one is offered Log the contact name, date and outcome #### Close the loop **Items:** Release the order in the ERP and confirm the status change Reset temporary limits or terms when they expire Review the holds backlog daily and age every item Track the number of holds released late and the reasons Update the customer credit file with the latest review date Feed repeat offenders into the next credit limit review **Scoring Note:** Complete every critical item before releasing. A hold released without the critical checks is a credit risk and an audit finding. ## Content **Intro:** A credit hold delays a shipment, and the people who feel it first are in customer service. A consistent review checklist keeps good orders moving, protects finance from risky releases, and leaves an audit trail. Use it for every hold, not just the difficult ones. **Sections:** #### How to use it **Body:** Work the groups in order. Confirm why the order is blocked, then compare the customer exposure to the credit limit, decide on an action with the right approver, and tell the customer clearly what is needed. Critical items are marked because skipping them creates the highest risk. Export the completed list to PDF or Excel to attach to the customer file. #### What exposure includes **Body:** Credit exposure is more than open invoices. It normally includes open invoices, shipped goods not yet invoiced and open sales orders that are not yet shipped, less unapplied cash. Different ERPs calculate the credit check differently, so know which buckets your system includes before you decide. A customer can look fine on invoices alone and still be well over the limit once open orders are added. **Bullets:** - Check terms codes on the order against the customer master - Partial release can protect the relationship while limiting risk - Temporary increases need an expiry date #### Common mistakes **Body:** Releasing orders because a salesperson asks without a documented approval is the most common failure. Others include ignoring disputes that are the real reason for non-payment, and leaving holds unaged so that they sit for weeks. Measure time on hold for each order, review the oldest holds each day, and agree with sales which situations qualify for prepayment or deposit terms instead of a release. **Cta:** Netray can build a read-only credit hold view in your ERP that shows exposure, aging and approval history in one place for customer service and finance. **Faq:** #### Who should approve a release? **Answer:** Follow your delegation of authority. Many companies tier approval by exposure amount, with finance managers approving above a set level. #### Should partial shipments be allowed? **Answer:** Often yes, up to the available credit. It keeps part of the order moving, but confirm the customer accepts partial delivery and that it does not trigger separate freight fees. #### What if the hold is wrong? **Answer:** Fix the master data cause, such as terms or limit, rather than releasing each order manually. Repeated manual releases hide a data problem. #### How long should a hold take? **Answer:** Set a target such as one business day for review. Long holds create missed ship dates and customer complaints. ## Search terms credit hold release checklist, sales order credit hold process, credit hold review, release order from credit hold, credit hold procedure, customer credit limit review, order hold checklist, credit approval checklist --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json