How to Enforce Credit Limits in QuickBooks
We receive a lot of queries from users who want to know how to enforce customer credit limits in Quickbooks. QuickBooks doesn't support enforced credit limits; instead, the software issues a warning when an invoice will exceed the limit. Users are free to ignore the warning.
Enforcing customer credit limits in QuickBooks is a matter of setting rules for employees. You can also make some changes to the customer's configuration to make the credit limit problem more apparent: Create a Terms option named NO CREDIT (all caps makes it more noticeable on the Invoice template) and assign it to customers who are close to or over their credit limits. Change the name of the customer to add the words NO CREDIT or NO INVOICES to the customer name, e.g. SmithCo-NO CREDIT. (The customer name doesn't appear on any transaction forms.)