What is use of using dynamic credit check?

[Former Member]

Hi,

What is use of dynamic credit check instead of using simple credit check

In dynamic it will consider horizon and perform for only some given period this process is use in which case dynamic + horizon

Ahmed

[Former Member · Accepted solution]

Hi,

DYNAMIC CREDIT CHECK will have the HORIZON period

During this period system will calculate the Open order, Open deliveries, Open Billing value and compare with the Credit limit

Let say,

The credit limit is 10000 $ and the open orderopen deliveriesopen billing values is 120000. Horizon limit is 3 months

In those three month if the Open ordersopen deliveriesopen billing document have the value of 900000, then system will considere this amount and compare with the credit limit of customer and allow the subsequent document to create.

Means during that 3 months, the Open item values are considered and the Open orders which will deliver after this Period are not considered in the HORIZON PERIOD and hence the credit check not performed

Hope it is clear,

thanks,

santosh

[Former Member · Accepted solution]

Hi,

thanks, Can you please give ant example in which case this process is used because we can use simple credit check also

Ahmed

[former_member217082 · Accepted solution]

Hi Ahmed

Dynamic Credit check has time horizon where as in simple credit check wont time horizon is not calculated

Example :

If you are using dynamic credit check and the time horizon is 1 month and the customer credit limit is 5lacs then within this 1month if the customer places the order more than 5lacs then credit limit will exceed and system will throw an error by. So if the customer places order more than 5lacs then you cant create sales order as it will throw an error or warning message

Regards

Srinath

[sarthak_mohantysd · Accepted solution]

Hello,

Please use the search option and you will get plenty of info. The best link which would explain this concept is as follows:

Regards,

Sarthak

[Former Member]

CLOSED

[Former Member]

Hi,

Credit check: dynamic check

Indicates that the system carries out a dynamic credit limit check within a specified credit horizon.

The customer's credit exposure is split into a static part - open items, open billing, and delivery values - and a dynamic part, the open order value. The open order value includes all not yet or only partially delivered orders. The value is calculated based on the shipping date and the credit horizon you specify in the adjacent field. 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.

Example : Delivery will be done after twomonths why system has to check credit check now

Thanks,

venkataswamy.y

Edited by: yanamadala venkataswamy on Oct 6, 2009 10:34 AM