credit check- difference between static & dynamic credit check.

[Former Member]

Hello,

can anybody tell what is the difference between static & dynamic credit check.

Thanks, Nitin.

[Former Member]

Hi Nitin,

AUTOMATIC CREDIT CHECK: Give extra credit facilities to the particular customer.

STATIC CREDIT LIMIT DETERMINATION: Checking Group + Risk Catageory + Credit Control Area.

A) Credit Checking Groups: Types of Checking Groups.

01) Sales

02) Deliveries

03) Goods Issue

At all the above 3 levels orders can be blocked.

B) Risk Catageory: Based on the risk Categories Company decide how much credit has to give to the customer.

HIGH RISK (0001) : LOW CREDIT

LOW RISK (0002) : MORE CREDIT

MEDIUM RISK(0003) : Average Credit

Static Credit Check it checks all these doc value & check with the credit limit

1) Open Doc.Value / Sales Order Value : Which is save but not delivered

2) Open Delivery Doc.Value : Which is delivered but not billed

3) Open Billing Doc.Value : Which is billed but not posted to FI

4) Open Item : Which is transferred to FI but not received from the customer.

DYNAMIC CREDIT CHECK:

1) Open Doc

2) Open Delivery

3) Open Billing

4) Open Items

5) Horizon Period = Eg.3Months

Here the System will not consider the above 1,2,3& 4 values for the lost 3 months

Then assign the Sales Doc & Del Documents.

Sales Doc.Type(OR) + credit Check (0) + Credit Group (01)

Credit Limit Check for Delivery Type : Del.Type (LF) + Del Credit

Group (02) + Goods Issue Credit Group (03)

Please Reward If Really Helpful,

Thanks and Regards,

Sateesh.Kandula

[Manoj_Mahajan78]

Nitin,

Static Credit Limit Check

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.

dynamic credit check

Dynamic Credit Limit Check with Credit Horizon

The customer's credit exposure is split into a static part; open items, open billing, and delivery values (see above), and a dynamic part, the open order value. The open order value includes all undelivered or only partially delivered orders. The value is calculated on the shipping date and stored in an information structure according to a time period that you specify (days, weeks, or months). When you define the credit check, you can then specify a particular horizon date in the future (for example: 10 days or 2 months, depending on the periods you specify). For the purposes of evaluating credit, you want the system to ignore all open orders that are due for delivery after the horizon date. The sum of the static and dynamic parts of the check may not exceed the credit limit

In dynamic crdt control you are Giving customer more benefit because of Horizon Period.

REWARD IF U FINDS THIS AS HELPFUL..

Regds

MM

[Former Member]

Hi,

<b>Static credit limit check:</b>

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.

<b>Dynamic credit check:</b>

The customer's credit exposure is split into a <b>static part</b>; <b>open items</b>, <b>open billing</b>, and <b>delivery values</b> (see above), and a <b>dynamic part</b>, the <b>open order value</b>. The open order value includes all undelivered or only partially delivered orders. The value is calculated on the shipping date and stored in an information structure according to a time period that you specify <b>(days, weeks, or months).</b> When you define the credit check, you can then specify a particular <b>horizon</b> date in the future <b>(for example: 10 days or 2 months, depending on the periods you specify)</b>. For the purposes of evaluating credit, you want the system to ignore all open orders that are due for delivery after the horizon date. The sum of the <b>static</b> and <b>dynamic</b> parts of the check may not exceed the credit limit.

Reward points if solution helps.

Regards,

Allabaqsh G. Patil

[Former Member]

Static Credit Limit Check

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.

dynamic credit check

Dynamic Credit Limit Check with Credit Horizon

The customer's credit exposure is split into a static part; open items, open billing, and delivery values (see above), and a dynamic part, the open order value. The open order value includes all undelivered or only partially delivered orders. The value is calculated on the shipping date and stored in an information structure according to a time period that you specify (days, weeks, or months). When you define the credit check, you can then specify a particular horizon date in the future (for example: 10 days or 2 months, depending on the periods you specify). For the purposes of evaluating credit, you want the system to ignore all open orders that are due for delivery after the horizon date. The sum of the static and dynamic parts of the check may not exceed the credit limit

[former_member396676]

HI,

Please find info on

http://help.sap.com/saphelp_47x200/helpdata/en/93/74382d546011d1a7020000e829fd11/content.htm

Vrajesh