dynamic credit check??

[Former Member]

Dear all experts, Setting: "dynamic credit check" is on, "reaction" to dynamic creadit check - C (warning + value by which credit limit is exceeded), "sttaus/block" field is checked (indicating that further processing is blocked) What is the impact of these settings when i try to save a sales order for delivery today that would put a customer over its credit limit? What is the impact of the settings when i try to save an sales order with delivery date of 90 days into future. The sales order would put a customer over its credit limit? Thank you. Regards, lokisandra

Edited by: lokisandra on Aug 10, 2009 6:20 AM

[former_member648947 · Accepted solution]

Dear Lokisandra,

The Horizon is set in Trxn OVA8, with numeric value e.g (2) and period unit ( Day, week, month ), once you set it its automatic and is related to Info strucutre 'S066' and it is calculated from the date order is placed.

so every passing day system calculates further till horizon date. e.g 1st July order placed and if horizon is 2 months system will consider the orders till 1st of sep. if order is placed on 2nd july then till 2nd of sep and like wise.

and 2nd query "And btw can the order that the company try to save for delivery today be successfully saved but be block? (the order exceeds credit limit as well)"

Yes it entirely depends upon how you want credit reaction to work ( please check (OVA8 , Reaction and block field combinations), you can have error message which will not allow to save the doc or a warning which will give a warning but further proceesing is allowed. you can also add block which will allow to save the order and authorized person/Manager will remove the block in Txn VKM3.

Hope that helps.

Regards,

Paresh kolte

[former_member648947]

dear Lokisandra,

Hello again

I have already explained the functionality of Horizon in one of your recent posts.

Now specifically to answer your question : "So the order with delivery in 90 days later will not be bloacked and can be successully saved in the system even if it has already exceed the credit limit?"

Yes , system will allow to save the sales Order and will not be blocked due to credit check.

If any previous sales order which falls within Horizon exeeded the credit limit and result of credit check was block, still this following sales order with delivery date after 90 days will be allowed to save, for simple reason as Horizon will not consider this order. ( Refer my answer in previous post to get better understanding)

once you set the horizon of 2 months, system automatically everyday goes 2 months in future to calculate the credit limit.

so lets say 1st January order was placed with delivery date 2nd January which exeeded the credit limit. on 2nd January you placed an order which has delivery date 2nd April (approx 90 days) system will not consider this order for credit check as Horizon is 60 days and will be allowed to save. But when the date 2nd Feb will come horizon of 2 months now will calculate the 2nd Order in open Items and will reduce the credit availabilty,( if customer had utilised all the credit limit he will not be able to create any new orders which were within horizon)

Now obvious question is wht happens to this order whether it will be processed ?

Answer is Yes it might get processed but refering to above example from 2nd of feb it will stop other sales orders to be created newly, keeping customer's credit exposure unchanged.

I hope this Clears your doubt, or write back.

If answered please close the thread.

Regards,

Paresh Kolte

Edited by: Paresh Kolte on Aug 10, 2009 11:44 PM

[Former Member]

hi, thank you. i have one more question - how is the horizon set? Is it set every 2 months for example Jan-feb, march-april... or is it set by the date order is placed? And btw can the order that the company try to save for delivery today be successfully saved but be block? (the order exceeds credit limit as well) loki

[former_member1091983]

Hi,

What is the impact of these settings when i try to save a sales order for delivery today that would put a customer over its credit limit?

Without defining credit Horizon Dynamic credit check will act as same as Static..the only differece between these both the checks is Horizon...so in this case when u customer credit limit exceeds system will thro' an wraning cum credit exceeding vaue..and credit status block..

What is the impact of the settings when i try to save an sales order with delivery date of 90 days into future. The sales order would put a customer over its credit limit?

As long as u dont maintain the Horizon ,system will react in the same way as mentioned above..

Reg

JJ

[Former Member]

hi, what iif the horizon is setting at 60 days? What would happen then if the sales order with delivery date of 90 days into future, and the sales order exceeds credit limit? Thank you. lokisandra

[former_member1091983]

Hi,

If u maintain 60 days in horizon, system wont consider that particular customers open items for the last 60 days...from the sales order date..if he(customer) wud hav any open items more than 60days those open value will only be considered by the system...system wont bother about ur delivery date of 90days into future ..

[Former Member]

hi,

so the system would not give the message of warning and then block the sales order?

[former_member1091983]

Hi,

If the cutomer's credit limit open item was within that 60days horizon period then system wont give any warning msg&block..simply it will ignore those open values...

Reg

JJ

[Former Member]

Dear All,

I understand credit horizon is for futuer orders and does not consider back date ordes.

even if u keep the field balnk system will consider the current date.

Regards

Sanjay

[Former Member]

hi, so what would exactly happen if the delivery date is set to be 90 days in the future while the horizon is 60 days? loki

[aramsum]

Hi,

If I am not worng ,Horizon period is the time till which system takes all the open items into consideration based on the update group you have maintained in the definition of credit control area(OB45). If you have maintained the update group "00012" system will tkae the open order, delivery abd billing values into consideration.Even If you have the delivery date after 90 days

system takes this values into consideration if the update group is "00012" as the order is still to be delivered. This order comes as a open order. see below definition of horizon period.

"Dynamic credit check: Distance to credit horizon

Specifies the credit horizon for a dynamic credit check.

Procedure

Enter the number that defines the credit horizon. The number works in conjunction with the period you specify. You can specify periods in days, weeks, or months.

Example

You specify a horizon of 4 M (months). For the purposes of evaluating credit, the system ignores all open orders that are due for delivery beyond the four month horizon you specified."

Once the horizon period lapses ,system does not take any thing into consideration.

Regards

Ram Pedarla

[Former Member]

hi there, So the order with delivery in 90 days later will not be bloacked and can be successully saved in the system even if it has already exceed the credit limit? loki