Credit Mgmt.

[Former Member]

Can anybody explain me in automatic credit control

1.how the Hrizon is get calculated in Dynamic creidt check

is.I want to say is horizon is checked= (Order creation date-Schedule line confirmation date)

2.How the open item credit check is done.if anybody can explain me with the example.I want to know how Max open item % and No of days open item gets calculated on what base?How can we check it?

[Former Member]

I understand your maintain open item % and days in automatic credit control configuration.But I want to know how they are calculated and from where we can see that the open item % and days exceeded.

Because while order saving its only giving a popup screen that oldest open item value exceeded but where we can see its exceeded by this much %.Like in FD32 you can credit limit is used 115%.From that we can understand credit limit is exceeded by 15%.Same way where we can see that???

[Former Member]

hi,

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.

so while doing credit check with horizon date, you want to ignore all orders whose delivery date fall outside the horizon date.

Overdue Open Items

The relation between open items which are more than a certain number of days overdue and the customer balance may not exceed a certain percentage. the percentage can be specified while defining the automatic credit control settings.

Oldest Open Item

The oldest open item may not be more than a specified number of days overdue.

regards

sadhu kishore