cancel
Showing results for 
Search instead for 
Did you mean: 

credit management

Former Member
0 Kudos

Dear gurus,

can any one explain me in detail regarding HORIZON PERIOD in T.CODE FD32.

Regards

sunil

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
0 Kudos

Sunil,

Horizon period is were you enter Credit horizon Date through which you limit only those sales outstanding values which you need to recover from the customer.

1. We maintain or customize parallely in OVA8, under the Header "Checks" in the Field "Horizon" we give 2 and (this no will work closely with the period that you specify) period split we can give M - month or W - week or T - Day. The system will ignore all the open orders that are due for delivery beyond 2 months while calauclating for CREDIT.

Only through this customisation you can get the outstanding sales within or uptill the horizon date that you mention in the Tcode FD32 under "Status"

2. If you have not customized in OVA8, but still you proceed with the Horizon date that you mention in FD32 then it will list all outstanding sales documents

Regards

Sathya

Edited by: Sathya Pavan Yedavalli venkata on Mar 11, 2009 11:06 AM

Edited by: Sathya Pavan Yedavalli venkata on Mar 11, 2009 11:10 AM

former_member550050
Active Contributor
0 Kudos

Welcome to SDN

For a customer X the credit limit defined is Rs 1 Lakh

The horizon period say is 1 month

Now His Open orders (orders that has not been delivered) + Open Deliveries (deliveries that has not been billed) + Open billing (Billing documents that has not been released to accounting) + Open items (Billing documents that has been released to accounting but not been paid by the customer)

All these 4 put together the value is more than or exactly 1 lakh

Now logically speaking we should not register any other order for this customer or system should not register any other order for this customer

In this situation an order comes from this customer for about Rs 25000 and

suppose the delivery of this order is due on any date after 12 th april

Then this order value (that is Rs 25000) will not come in the credit limit calculation of the system

because the horizon period is 1 month (from 11.03.2009 (today) to 11.04.2009) so the delivery is on 12th april

This order will be accepted by the system without the credit limit check

For this order any delivery date after 12 th April there wont be any credit check as of today

Credit management will not be considered for this order because the delivery date falls after the Horizon date that is after 1 month

If this order the due for delivery is any day before 12th april it will come under the credit scanner

Credit management will be considered for this order because the delivery date falls with in the Horizon date that is within 1 month

Ultimately the horizon period has a huge impact on Open orders

Hope you are getting it

Regards

Raja

Former Member
0 Kudos

Hi,

If this indicator is set, only the outstanding sales values which fall within the defined credit horizon are taken into account when calculating the credit limit used.

Eg. if you maintain today (11/03/2009) as horizon period in FD32 & in customizing the horizon period take for Eg. 2 months. Then system will consider all the open documents which falls from to day to +& - 2 months.