Credit management horizon periods

[Former Member]

Hi,

Is horizon periods is for future or past?

Here my requirement is for one of my customer has sales orders(Scheduled) for a year means from January to December .

If i give horizon as 3 months as per my knowledge system will not consider the future 3 months orders which are open.

But system will calculate remaining 9 months open orders and block if limit has exceeded.

In brief what i want is : System has to consider the coming 3 months open orders into account for credit check and ignore the remaining 9 months open orders.

Regards

Devdas

[former_member184555]

Hi Devdas,

If i give horizon as 3 months as per my knowledge system will not consider the future 3 months orders which are open.
But system will calculate remaining 9 months open orders and block if limit has exceeded. 

Your understanding is not correct. In your example, if you have open orders for 12 months, the system considers the value of only those open orders that are due for delivery in the next three months (if the delivery date falls on or before the Horizon DATE) will be considered for credit check and the remaining orders will be ignored.

In general, the horizon period will be less for safer customers and the horizon period will be more for customers with bad payment history.

Thanks,

Ravi

[Former Member]

Hi,

Horizon Period is for PAST Time ( From the Date the Sales Order Created).

If You are using Dynamic Chech Then only Horizon Period will came into Picture. ncase of a static credit check there is no time horizon period so all the open orders in the system for a particular customer would be taken into consideration.

Well Static and Dynamic Credit Check both take the following into consideration while performing a credit check.

1) Open Orders

2) Open Deliveries

3) Open Invoices

4) Open Items

If u r using SIMPLE CREDIT CHECK: then it will consider only :

Doc.Value + Open Items.

Doc.Value: Sales Order has been saved but not delivered

Open Item: Sales Order has been saved, Delivered, Billed & Transferred to FI, but not received the payment from the customer.

Thanks.

[Former Member]

This message was moderated.

[bsivasankarreddy_reddy]

hi

in credit check , dynamic in this you give the horizon period , this check you will set, day , months , periods . your question is months, this you will fix the data for credit check for limit of periods at fd32 , her you fix amount and valid to and valid form , like jan-December , and also give horizon period 3 months , system will block after march , 2012 jan-2013 march , it open , after march , system will block the sale order , check the ova8 , you check the open order or open delivers, you also calculate the oldest open item ,

please check the ova8 all type of credit checks

please try this

[jignesh_mehta3]

Hello Devdas,

That is exactly for what we have Horizon option in Credit Management.

You have Open Orders for one year & you only want to consider Sales Order for next three months, then set 3 in Horizon & system will NOT consider any open Order after three months.

Hope this helps,

Thanks,

Jignesh Mehta

[Former Member]

Hi Devdas,

if you maintain horizon period 3 months from today onwards then system consider open order upto 3 months after 3 months system doesn't consider any open order.

Regards,

Vikas