How Horizon calculated in Dynamic Credit check.

[Former Member]

Hi,

How is the credit check/exposure in FD32 calculated based on the

horizon date and the horizon (period) as specified in OVA8.

Take for example, I have the following:

In OVA8, I specify Dynamic credit check with 12 months horizon.

Then, in one of the customer's FD32, the horizon date is specified as

01.06.2006.

With this, there is a set of values displayed for the credit exposure

as well as accounts receivable values, sales values etc...

However, when I tried to change the horizon date to something else, say

01.08.2006 and then hit the ENTER key in FD32, the exposure values etc get

changed. If I changed it to some other dates, it gets changed as well.

So now, my question is, If I have specified 01.06.2006 in FD32, and 12

months in OVA8, what is the range of the 12 months that the open orders are

under consideration?

Is it Option A: 01.06.2006 to 31.05.2007 ?

Or Option B: 31.05.2005 to 01.06.2006 ?

Or Option C: Something else?

Also, if I do not specify anything, is it taking the current date's value

and which Option is it taking above? A, B or C?

Can someone please help me to understand this in details?

I'm getting confused.

Regards,

Bedayan.

[former_member131745 · Accepted solution]

Credit check: dynamic check

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.

You can also find more information about this in the following OSS note: 379007

I hope this helps.

Thanks,

Gerard