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credit check

Former Member
0 Kudos

Hi all

please tel me when we do a static credit check and when we do a dynamic credit check ?

please explain the horizone period in dynamic check

Thanks

shibaa

Accepted Solutions (0)

Answers (5)

Answers (5)

Former Member
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Thannk you srinu

Shibaa

claudia_neudeck
Active Contributor
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Dear Customer,

you can have a look at the online documentation:

http://help.sap.com/saphelp_47x200/helpdata/en/7f/1d85347860ea35e10000009b38f83b/frameset.htm

Different Types of Credit Checks

You can define any of the following credit checks for various combinations of credit control area, risk category, and document credit group:

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.

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.

I hope that the information are helpul.

regards

Claudia

Former Member
0 Kudos

Hi Shibaa,

There are two ways, one is if you want credit check for particular period then we have to use Dynamic as it will be applicable for that period but will not check documents fall Pre or Post.

Static will be used if you want to control your customers credit standings all through with Credit review dates so as to understand the payment pattern of them.

This can be used only with automatic credit check.

Inform you need any details

Former Member
0 Kudos

Hi,

The major difference between a Dynamic and static credit check is that the dynamic credit check has a horizon date i.e., a date beyond which the documents will not be considered for credit checks but in static credit checks there is no horizon date, hence all the open documents will be considered for credit check. The documents that should be considered for credit check again depends on the update rule that you assign to the credit checks.

The settings for credit check can be done in automatic credit check using OVA8.

former_member217082
Active Contributor
0 Kudos

Hi Shibaa

Configuring of Static credit check or Dynamic credit check depends on the business process. But it is advisable to maintain dynamic credit check . Secondly it is the importance of Horizon period is system will calculate the open orders, created sales orders etc based on the Horizon period . Based on the horizon period it wil update the data

Regards

Srinath