horizon period in dynamic check

[Former Member]

hello every1,

can u please explain horizon period used in dynamic credit mgmt with EXAMPLE?

-Prashant

[Former Member]

Hi siva and anuj, Thx 4 ur replies.

But I am still not clear. Do u mean that if horizon period is 2 months, system wont consider the open and partially delivered order value during the LAST 2 months or FUTURE 2 months? if so, from which date this horizon period is considered? is it from the shipping date or the pricing date?

thx in advance.- Prashant

[Former Member]

Well Prashant

Its very simple what ever period you specify the system will consider only that particular period during the calculation

Also since u are confused about the Past and Future well it would be the past date as logically speaking how will a system consider a future date for that particular sale order which has to be created ... i hope u get it

so if you specify 2 months it will consider the past two months from present date

Hope it gives you clarity

Cheers

[Former Member]

hi,

in Std. sap we can determine the credit management at three stages.

1. at sales order level.

2. at delivery level.

3. at pgi level. (almost all the organisation will maintain the dynamic credit check rather than static.)- b'coz dynamic credit check can be made at any levels.

so when ever the company person creates an order /delivery/and do pgi, he can come to know the credit limit which is exceeded for that particular customer, it depends in what u want to determine the credit limit. the system will gives you the pop up that this customer credit limit is exceeded. so you will proceed further accordingly .

ex: if the customer place an order today (03-09-07) in the louis phillipe, allensolly and vanheusen shirt and trouser 300 each in every brand, so the total would comes to 900 pcs *1000 rupees. so the value comes Rs. 9 lacs. but the customer wants partial deliveries in 3 batches of 300 pcs in 3 days gap for the value of Rs.3 lac rupees, so the total days comes to 9 days to execute the order to complete.

When the company person punching the order and execute 2 batches in 6 days of 300 pcs for the value of 6 lac rupees, but the customer credit limit is only 7.5 lacs, then the balance order when the company person punch, the system will give the popup that the customer credit limit check exceeded of Rs. 1.5 lac, would you to like to proceed?

Accordingly you will make a arrangement to intimate the customer that ur credit limit has been exceeded, so the balance 150 pcs cannot be executed. so company will collect either advanced cheques / DD/ post dated cheques/ cash.

Note: if the customer is reliable, low risk , key customer for your company. then that example is applicable.

so the dynamic credit check will make you to determine at any stages during execution of orders.

Horizon period is basically used for to determine the credit limit periods of the customer.

i hope your issue would resolved.

reward points if it is useful.

Regards

KR

[Former Member]

HI Anuj, Thx for reverting.

I went thru sap help. The info I found there is very ambiguious from your explanation. It says-

"<i>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</i>."

Please give this a little serious thought and tell me wat u say. Thx.

[Former Member]

Hi Prashant

i gave a thought and that is what i have explained

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). <b>This ensures that sales orders which lie further in the future are not used to determine the credit exposure."</b>

If you read this properly it clealy states that sale orders in Future are not subjected to the credit check & only the ones in past are used & that is what i have mentioned in the thread above it will have a horizon period and that too in past ..

Hope thats clear now

Cheers

[Former Member]

hi

Ex : Horizion 2 months, customer place a order on 3-09-07, his reqested delivery date or delivery date is 4-01-08 ( 2 months latter ). so system not include this order when carried out availability check why because ,we maintain horizion date two months.

Regards

Raj

[Former Member]

The dynamic check includes both a static part, which checks all

Open Items, deliveries, Billing Documents and a Dynamic part, which checks all outstanding Order Values, that is, all Orders not yet delivered or partially delivered.

A Horizon date is specified (10 days or 3 months) along with this. If this indicator is set, only the outstanding sales values that fall within the defined credit horizon are taken into account when calculating the credit limit.

Hope this helps

Cheers

[former_member227476]

dear prashant,

DYNAMIC:-

In dynamic credit check system gets the credit exposure the static part. But the difference between static &dynamic is, dynamic check contains horizon period ex 2 month.

To evaluation the credit check system takes for the open items, open orders, open delivery into consideration that falls below the 2 month. System doesn’t take those documents that fells after 2 months

rewards pls

siva