Matt/Darcy:

Adagio PO will check credit limits including (I believe) total outstanding orders plus balance on the vendors account (much like what OE does).

Andrew:

Ever submitted a PO and then wondered why your order never got delivered? Only to find out your order is in the too hard file as you have exceeded your allowable credit limit. It happens more oftenm that you think when your a small company dealing with a very large organization.

I order to prevent this from happening you have to monitor your outstanding PO's and account balance against your credit limit so that you can take preemptive action.