What does Netsuite assess the credit limit based on in relation to a Sales Order?

The correct answer is related to how Netsuite determines a customer's credit limit concerning a Sales Order, which is primarily based on the terms of the sale. Terms encompass the agreed-upon conditions between the buyer and seller regarding payment timelines and conditions that can significantly influence a customer's creditworthiness.

When setting credit limits, Netsuite considers these terms to evaluate the likelihood that a customer will meet their payment obligations based on their payment schedule and any discounts or fees applied. The terms inform not just payment expectations, but also the risk associated with extending credit to customers.

While factors like customer payment history, payment method, and product type may influence overall transaction behavior and risk assessments, they do not specifically dictate the credit limit according to the Sales Order process as directly as the payment terms do. Therefore, understanding the terms is crucial to sales and finance operations within Netsuite to manage credit risk effectively.