A small doubt in credit management

hi,
i have a small query related to credit management, 
Eg: For customer XXX there is 1000/- as credit limit.  He has used all the total amount which is shown in credit exposure 999%.
How the system behaves or what is the impact on credit exposure that is 999% for this customer when it comes to raising of credit memo request to the same customer let's take credit memo request value is 100/-.
please explain.
regards,
balajia.

Hello Friend,
See basically the Credit Management Works as:
1. Every Invoice & Debit Memo increses the Debit Amount which is Receivables from Customers. Thus this increases the Credit exposure.
2. Every Credit Memo decreases the Debit Amount (as it is a Credit entry) which decreses the Receivables from Customers. Thus thus this reduces the Credit exposure & the percentages...
Hope this clears...
Thanks,
Jignesh Mehta

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