on 05-15-2008 7:25 PM
HI,
what is the difference between static and dynamic check?
Hi raj
Dynamic credit check takes into consideration the time horizon whereas static credit check doesn't consider the time horizon
Regards
Srinath
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Hi,
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:
The customer's credit exposure is split into a static part; open items, open billing, and delivery values, 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. When you define the credit check, you can then specify a particular horizon date in the future. For the purposes of evaluating credit, you want the system to ignore all open orders that are due for delivery after the horizon date.
Prase
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