How Horizon date works in real time with example

[Former Member]

Hello Experts,

Regarding Horizon date I have seen so many posts in the forum, but so many persons not get clarification. i have asked so many consultants also

In the credit control area configuration settings Horizon date will be maintained as Day, Week, Months wise and the same will be maintained in the FD32 credit master record. This date will always in the future date

As per the SAP help which tells not to consider the open sales volume with in this horizon period which will be extra benfit given to the customer. RVKRED08 program also has the relation with horizon date with open sales orders value

Some one saying that if the customer has limit of 10,000 and used up to 9,000 and trying to create the order with 2000 amount after the horizon date is the requeted delievry date. I have tried but system is blocking the sales order.

Some one saying that all the open values will not be considered in the past two months, But i did not get the clarification, i am able to understand all the credit related settings except this one.

Please can any one help me with examples and how it works. i have faced so many times this interview question

I know some programs RVKRED09, RFDKLI10, RFDKLI20 and so on. Plaese can any one provide the solution

Regards

Ram

[former_member183879]

Hi Ram,

I am copying the contents of the OSS note 379007 for your view. This note explains the mechanism of horizon date calculation. Hope this helps you

Basic principles for the dynamic check:

1. Determination of the horizon:

The horizon is defined in Customizing (Transaction OVA8).The time units correspond to the settings for statistics structure S066 in Transaction OMO1.

When you create a sales order, the system determines the end of horizon. To do this, it adds the defined horizon to the current date (SY-DATUM) and determines all open order values within this time interval.

Example:

Horizon: 2 months

Current date: August 15th

End of horizon: August 15th plus 2 months -> October 15th

Because the update occurs monthly, the

system uses the complete month into which

the end of horizon falls.

As a result, the actual end of horizon in

this example is October 31st.

The open sales order values are updated in

time units.

2. Update of the open sales order values:

Update of the open sales order values:The basis for the determination of the correct time interval is the material availability date of the schedule line (VBEP-MBDAT).

3. Block of documents:

When the system checks sales orders, it is not important whether the sales order itself lies within or outside the horizon.The system simulates the values of the sales order currently being edited and adds them to the consumption from the master data:

If the sales order items lie within the horizon, the system adds their open values to the consumption, if the sales order items lie outside the horizon, they do not increase the consumption.In this case, the material availability date is also relevant.

As a result, documents which lie outside the horizon are also credit blocked if the consumption within the horizon already exceeds the credit limit - that is, if the customer has exceeded the credit limit beforehand.

Caution:

Consider that order items exist which do not update open order values but open delivery values. These are specified in note 361637. Since open delivery values are always taken into account during the dynamic credit check, the values of these items are always taken into account as well - the material availability date is not

important in this case.

4. Check of documents which reach the horizon:

If you use the dynamic check, you should plan report RVKRED08.The report checks all documents again which reach the horizon.See Note 26881 or the documentation of the report.

5. Update group:

The update group is defined in the credit control area (transaction OB45). If you use the dynamic credit check, you should use update group 000012. Update group 000015 does not update open order values at all. For update group 000018, the order already udpates the open delivery values. However, the open delivery values are not updated in time units. According to the dynamic credit check, open delivery values and open billing document values are always taken into account completely.