---
title: "What is ERP Credit Control? - AR Dictionary"
description: "ERP credit control is how an ERP system tracks what customers owe and chases overdue invoices, using its own reminders or a connected credit control app."
url: https://www.paidnice.com/dictionary/erp-credit-control
---

# ERP Credit Control

## What is ERP credit control?

**ERP credit control is how an enterprise resource planning (ERP) system tracks what customers owe and chases overdue invoices, using its own reminders or a connected app.** The ERP holds the ledger: invoices, payments and credit notes. Credit control is the work done on the overdue ones, from the first reminder to a hold on the account.

Most cloud ERPs include some of that work natively. In our review of eight cloud ERPs, seven document a reminder or dunning letter without an add-on and five add a fee or interest natively. None documents reading the customer's reply.

That gap is why many teams connect a credit control app to the ERP. The ERP keeps the ledger, and the app chases the overdue invoices and writes the results back. Compare the eight ERPs in [credit control and collections software for ERPs](https://www.paidnice.com/blog/credit-control-software-erp).

ERP credit control is a narrower idea than [credit control](https://www.paidnice.com/dictionary/credit-control), which also covers credit limits and credit terms. It is also wider than [dunning](https://www.paidnice.com/dictionary/dunning), which is the sequence of reminder letters.

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