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Former Member
Apr 28, 2008 at 11:23 AM

Credit Limit to be controlled by credit exposure


Hi Guru's,

I have a scenario where in my client is maintaining a credit limit of Rs 1.0 and their business runs completely on LC, bank guarantee or on advance payment.

My client wants 10 % of the credit exposure amount not to be taken during billing.i.e. if they recieve a advance payment of Rs100/- from their client and after punching the same using fd-28, the credit exposure will be Rs 99/- (100-1).Now the billing should happen only till Rs 89/- (i.e. 10 % of the advance kept as safe deposit)and not till 99/-.

Can any one help me out in this regard.