Clarity required on Credit Checks

[Former Member]

Hi All,

I require some clarity on the following topics. Please can you all give some clarity with examples on the following

a. Dynamic Credit Limit Check

b. Static Credit Limit Check

c. Check based on maximum document value

d. Automatic Credit Control

( You can check this in help button in OR in "Check Credit Limit" field.)

Thanks,

Pankaj

E-Mail : pankaj.mishra007@rediffmail.com

[Former Member · Accepted solution]

Hi Pankaj,

Dynamic credit limit check:

The dynamic check includes both a static part which checks all open items, deliveries and billing documents and a dynamic part which checks all outstanding order values, that is, all orders not yet delivered or partially delivered. The value resulting from the checks is accumulated up to the shipping date in the information structure "S066" in freely definable time units or periods (day, week, month). This information structure is entered in Logistics Controlling and described in the section "Carry out default settings for credit management" under Basic functions.

To define the credit check, you specify a certain number of relevant periods from which a date in the future can be calculated (for example, 10 days or 2 months depending on the selected period). This ensures that sales orders which lie further in the future are not used to determine the credit exposure.

The total of the static and dynamic part of the check must not exceed the granted credit limit.

Credit check on the basis of the maximum document value:

The sales order value or the value of goods to be delivered must not exceed a certain value defined for the credit check. The value is stored in the currency of the credit control area. In particular, this check is useful if the credit limit of new customers has not yet been specified. This check can be accessed explicitly by a risk class reserved for new customers.

Static Credit Check:

Static credit check uses the value of confirmed quantities, regardless of delivery date. It also uses the open receivable balance and special general ledger accounts relevant for credit. You can also include open orders (regardless of delivery date) and open deliveries. Open deliveries include all quantities in deliveries as well as quantities in SD billing documents not yet passed to Accounts Receivable. The value is determined by multiplying the confirmed quantity by the credit price.

Reward points if it helpful

Regards

Govind.