static and dynamic credit check

[Former Member]

hello friends,

what is the difference between static and dynamic credit check, apart from the credit horion period?

it terms of exposure and any other factors?

thanks,

Viren.

[alex_zheng · Accepted solution]

Hi friend,

STATIC: the customeru2019 credit exposure (RF02L-OBLIG in FD32) may not exceed the established credit limit. The credit exposure is the sum of open sales values (order, delivery and invoice) and open items (receivables).

DYNAMIC: the system sums the same values like in static check. But only the open sales order values within the horizon are taken into account. For example, in OVA8 you specify a horizon of 4 M (months). For the purposes of evaluating credit, the system ignores all open orders that are due for delivery beyond the four month horizon you specified. Note 379007: u201CThe principle of the dynamic credit check is to compare the consumption (credit exposure) within the defined horizon to the credit limit. If the consumption within the horizon lies above the credit limit, the document is blocked (providing the block is activated in Customizing). The dynamic check consists of a dynamic and a static part. The open deliveries and billing documents belong to the static part. The sales orders belong to the dynamic partu201D. So the only difference between static and dynamic lies on the open orders.

Cheers,

Alex

[Former Member · Accepted solution]

thanks Alex, there couldn't have been a better explanation--this is exactly what I was looking for..

[former_member184555]

Hi

There is no other difference except Horizon Period.

Thanks,

Ravi