Effect of Payment Terms in Credit Management

[Former Member]

Can Any One tell me the effect of Payment terms in Credit management. How the effect will be for different Payment terms .and i want to know the implication of it.

Regards

Madhav

[Former Member · Accepted solution]

My reqt is that we maintained static credit check. when Payment terms ie 30 days due net. invoice is created . when going to create other order during static check whether it will take that invoice into account or whether it will take after 30 days into account. i want to know the scenario

will be thankful if any one give answer.

Regards

Madhav

[Former Member · Accepted solution]

I think it will consider that since even though that Invoice is not due yet, it is still an open item and credit will take into account all the open items.

[Former Member]

hello, friend.

a simple effect of payment terms on credit management is that when a customer open receivables remains uncleared beyond terms set, then credit management will allow the system to automatically either block any sales transactions or issue a warning message when these transactions are processed.

this feature is complementary to other control parameters such as credit limit (value), document value, open items, longest open items, etc.

regards.