How does credit limit rules work?

How does the system react to credit limit? Is there a range like behavior where the BO will apply a colored credit over ride say as green, then yellow and finally red. How is the range set and when open order gets close to the credit limit, what is the behavior and what are the rules?

Default functionality is yes/no, and you can set a flag for “warning” or “stop” when either a sales order or shipment sets a customer over their limit.

Individual orders can be released even if they put a customer over their limit, but that is a Finance action (part of the Customer Credit functionality).

Adding a “you’re getting warmer” indicator would be through customization or BPM.