on 10-03-2007 1:28 PM
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
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
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Hi,
Your understanding is right.
Credit exposure is the sum of receivables, special liabilities( if any for that customer), and sales value...
Regards,
Noopur
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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
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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
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