cancel
Showing results for 
Search instead for 
Did you mean: 

static and dynamic customer credit exposure

Former Member
0 Kudos

what is static customer credit exposure and dynamic customer credit exposure?

thank you !

Accepted Solutions (0)

Answers (2)

Answers (2)

Lakshmipathi
Active Contributor
0 Kudos

1) Static Credit Limit Check

The customer's credit exposure may not exceed the established credit limit. The credit exposure is the total combined value of the following documents:

- Open orders

- Open deliveries

- Open billing documents

- Open items (accounts receivable)

The open order value is the value of the order items which have not yet been delivered. The open delivery value is the value of the delivery items which have not yet been invoiced. The open invoice value is the value of the billing document items which have not yet been forwarded to accounting. The open items represent documents that have been forwarded to accounting but not yet settled by the customer.

2) Dynamic Credit Limit Check with Credit Horizon

The customer's credit exposure is split into a static part; open items, open billing, and delivery values (see above), and a dynamic part, the open order value. The open order value includes all undelivered or only partially delivered orders. The value is calculated on the shipping date and stored in an information structure according to a time period that you specify (days, weeks, or months). When you define the credit check, you can then specify a particular horizon date in the future (for example: 10 days or 2 months, depending on the periods you specify). For the purposes of evaluating credit, you want the system to ignore all open orders that are due for delivery after the horizon date. The sum of the static and dynamic parts of the check may not exceed the credit limit.

thanks

G. Lakshmipathi

former_member217082
Active Contributor
0 Kudos

Hi zingguo

Hi zingouu

Both credit exposures fall under Automatic credit check only

Static credit exposure includes

open orders + open deliveries +open billing documents + open items (accounts recievabale)

Dynamic credit check includes the TIME HORIZON

Regards

Srinath