Credit Management: Horizon Period

[Former Member]

Hi,

In Credit Management we have option to give Horizon Period as it controls Credit management will not be considered for any new order if the delivery date falls after the Horizon date.

But In which business scenario we can use this type of control.I mean in which situation we do not consider the credit check for the customer even when the customer already crossed the credit limit.

Any example will be appreciated.

Regards

Debasish

[former_member839993]

Hi Debasish Gupta,

This depends on client to client, i had a client who was very particular about this, we cant say why the client requires that particular parameter.

regards,

US

[Former Member]

Generally the horizon period who be for deliveries that fall outside of the payment due date for Accounts Receivable. For example a customer has $5,000 credit limit, has AR balance of $2,000 and places an order to be shipped in 90 days for $ 2,800. If this order is considered his credit available is $200. If he pays on time the AR balance will be $0 when the other order ships. With the horizon his credit is $3,000.

[Former Member]

This depends on the Update rule in OVA8 ... (12/15/18)

Its an important track. Horizon period is controlled through that.