Horizon -Credit Management

[Former Member]

Hi,

I have a doubt related to horizon in dynamic credit management.

Say Horizon:15 days

I have an S.Order booked 10 days back,so after 15th day that order will not be taken into account for credit management(as horizon period exceed)
.What if i the end user book another fresh order and make use of already booked order,delivery and bill means.He can violate the system na? How come credit management will play a role.Kindly clarify .Is there any provision to control this.

[Former Member]

This message was moderated.

[kalyan_mokirala]

Hi Pradeep,

Following is the explanation for your questions.

First understand business process. Normally Dynamic credit check can be preferably used only for low risk customers. How system evaluates dynamic credit check?

Customer's credit limit-all open orders whose delivery date is within time horizon+ Open deliveries+open bills +A/C receivables. Here if you observe all orders of the customer are not considered. Further if the delivery date of the current order is outside time horizon then system will pass the document for dynamic credit. In the current case if the delivery date of the order you created is beyond 15 days then system will pass the document for credit. Then how to have the control? you can have further credit checks done at the delivery and/ or  Goods issue level. Alternatively you can have more than one checks done at the time of order creation such as Maximum document value oldest open items, Next review date etc apart from dynamic credit check. Further you have a section called Release documents are still unchecked where you have percentage and the number of days, using which you can have receck of credit if the net value of the order is exceeds the percentage what is specified in OVA8 or the number of days are exceeded  or both then system will perform the credit check once again.

If the risk of the customer is high then use statich check with open orders check box checked in OVA8 screen then all the orders will be considered.

Hope this explains

[Former Member]

Hi,

If you check the field critical fields in OVA8 screen, system will throw an error if the sales order got modified with any critical fields changed.

Regards

Ratnamsree

[Former Member]

By Horizon period, it means the open documents within this Horizon period alone will be considered, if it is a Sales Order & if the material availability date falls within this 15 days period, yes they will still be considered even if the requested delivery date is 2 months later.

your question is little tricky, yes at the time of sales order creation if the material availability date was after 15 days & the status had got updated as not performed , u still have a chance of that order going unnoticed, but at the time of delivery it might be looked upon( provided credit management was made at delivery level). if you dont have the CM at delivery / PGI level, your question is correct.

but i read somewhere, but not confirmed that SAP Programs are designed in such a way that the Re-organization program for such horizons atleast are triggered to run every month. this is not a confirm point But i read it somewhere.

[Former Member]

Hi Pradeep,

Please correct me if i am wrong, if the user want to ammend the already booked order, system will prompt a message if you check nect review date field in OVA8 settings.

Regards

Ratnamsree

Regards