regarding horazin period in dyanamic credit check.

[Former Member]

hi sap gurus,

in credit management dynamic crdit check a feild called horazin period. what is the purpose of this period. plz explain with simple example. if suppose the period is let say 2 months. what is the effect of this 2 months on open documents and open items.

Edited by: Mahesh CH on Feb 19, 2008 4:36 PM

[former_member217082 · Accepted solution]

Hi Mahesh

In dynamic credit check, time horizon will be there . the usage of time horizon is it takes all open sales orders , open deliveries and open invoices into consideration.

plz let me knw if it is helpful to you

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Thanks and Regards

Srinath

[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.

regards

sadhu kishore

[Former Member]

Hi Mahesh,

Horizon is set to a specific date.The system calculates the proportion of the total commitments that have reached the credit limit by the specified date.

Hope this helps.

Abhishek