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Credit exposure

Former Member
0 Kudos

Hi Gurus,

What is exact meaning of CREDIT EXPOSURE. I had some confusion.

What i understood is for example: Credit limit given in FD32 for a customer RS:30,000/-. Credit exposure is 20,000/- which means 20,000/- credit limit used by customer.

Is it right?

Regards,

Vamsi P

Accepted Solutions (1)

Accepted Solutions (1)

ravi_kumar100
Active Contributor

Hi,

Credit Exposure is

The customer's credit exposure may not exceed the established credit limit. The credit

exposure is the total combined value of the following documents:

Open orders

Open deliveries

Open billing documents

Open items (accounts receivable)

The open order value is the value of the order items which have not yet been delivered.

The open delivery value is the value of the delivery items which have not yet been

invoiced. The open invoice value is the value of the billing document items which have

not yet been forwarded to accounting. The open items represent documents that have

been forwarded to accounting but not yet settled by the customer.

Regards,

Sarosh

ravi_kumar100
Active Contributor
0 Kudos

Hi,

Additional Information,

<u><b>In a credit limit check, the guaranteed value is taken

from the credit exposure</b></u>.

Credit limits and credit exposure are managed at both credit control area and customer level.

Regards,

Sarosh

Answers (3)

Answers (3)

Former Member
0 Kudos

Hi,

Your understanding is right.

Credit exposure is the sum of receivables, special liabilities( if any for that customer), and sales value...

Regards,

Noopur

former_member227476
Active Contributor
0 Kudos

dear vamsi

as per your description if the customer limit is 30000 and his utilisation is 20000

will called as credit exposure is 20000

you are right

rewards if it helps

siva

Former Member
0 Kudos

Hi,

Yes.... If the credit limit of the customer is 100000/- and he has availed the credit of 90000/-, means his credit exposure is 90000/-

Prase