Horizon Period

[Former Member]

Hi all,

While configuring the credit management, in Dynamic check in OVA8 screen, we give the horizon period, say 2 months. In FD32 screen, in the horizon field its showing a date after two months.

I tried to understand using the help, but I got confused.

Can somebody clarify me why its taking future date in FD32?

Regards,

Ajit

[Former Member · Accepted solution]

hi

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 Member]

Hi Ajit,

In Dynamic credit check we are checking the open orders and open deliveries that will fall in a given period say 2 month. thats called horizon period.

When you enter the 2 months as Horizon period in OVA8. the system calculates the horizon of 2 months from todays date and shows this in FD32.

In a dynamic credit check system includes,

Open orders (that fall in the horizon)

Open deliveries (that fall in the horizon)

open billing documents

and accounting documents

Muthupandiyan

[Former Member]

Hello Ajit,

In dynamic credit check, we use horizon date to consider credit limit for a particular customer, the outstanding sales values which fall within the defined credit horizon are taken into account when calculating the credit limit used.

In dynamic credit check system considers open orders, deliveries, billing and accounting documents to calculate ceredit limit. So whatever open documents it find within horizon date system considers all those to calculate credit limit used by the customer.

Suppose, we have given horizon date 29/11/2007 for a customer. Then system will consider all the having delivery date till 29/11/2007 starting from today for calculating credit limit used for the customer. Evenif some orders are there for the customer scheduled to be delivered after horizon they will not be considered while calculating the credit limit for the customer.

Hope this explanation helps you. Reward points if so.

Regards,

Priyanka

[Former Member]

Hi Ajit,

In a Dynamic Credit Check the system uses the following

1) Open Orders

2) Open Deliveries

3) Open Invoices

4) Open Items

By specifying the time horizon you tell the system to consider open orders that are within the time period.

Let's assume you run a Credit Check on 1st of Nov and had specified the time horizon as 1month. The system would consider the open order which are not delivered only upto 1st of Dec. Any open order due for delivery after this date would not be taken into account for the credit check. Also note the time horizon is specific to open orders only and not the other elements.

Hope it had helped you. Do reward if you had felt the same.

Regards

Nadarajah Pratheb

[Former Member]

Hi

In Dynamic Credit Check the values are updated based on period mentioned.

Here the values beyond the period will not be considered and will result in credit block.It also includes the Scheduline dates which are beyond the period.

So when u mention 2 months in OVA8 the credit values are considered within two months for the credit limit, from the date/change of the FD32 master data.

Regards

Ramesh