horizon date in CredContArea

[Former Member]

Hi experts,

Can you please explain me from the business perspective , why do we maintain Horizon date? I know that it checks open sales orders and deliveries..but from the business perspective, how is that useful? and If I maintain payment terms as 30 days net , how does system consider horizon date for this payment terms?

and One more issue I am working on , In the route determination ...If the weight group (total weight of sales order line items) changes , where it shows impact and what could be the alternate determination if weight group defers?

Thanks,

Kanna.

EM

[Former Member]

Thanks for response. Can you take a look at my other question experts? whats the effect if weight group changes in sales order , for route determination?

Thanks,

Kanna.

EM

[jpfriends079]

In Dynamic credit check we specify a time horizon, so that only those open orders whose delivery i sdue within this time horizon is taken into consideration in evaluating credit. This is called Dynamic part. i.e.. FD32 Credit Limit -(All open orders DUE FOR DELIVERY WITHIN TIME HORIZON + open Deliveries + open bills + A/C Rec) = Current Doc Value.

And System will check the open item s depending on the base line data in the FI document (already been invoiced)which will triggered from payment terms. The system will shows oldest open items depending on the payment terms from the invoice date.Once it crosses the days of payment then it will show in oldest open items

Hope this can assist in understanding.

Thanks & Regards

JP

[Former Member]

Hii,

Horizon in credit control takes into acount only open sales orders not open deliveries. Lets take a scenerio where one of the delivery date is 2 months from now and your horizon period is 30 days than in this case while creating a sales order today, it will not consider the previous sales order (with sch line 2 months) and thus customer is not penalized for our company not having stock.

I hope it is clear.

Regards,

Pankaj Jain

Edited by: Pankaj Jain on Jul 15, 2010 6:26 AM