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Credit limit check


Can anybody tell me wat is the difference between Static credit limit check and Automatic credit limit check.

thanx in adv.


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3 Answers

  • Posted on Dec 02, 2007 at 08:28 AM

    static credit check and dynamic credit check is part of automatic credit check.

    diff between them is deli period in dynamic credit check. ex. if we maintain 15 days del period in dynamic credit check then system will consider the documents which are having delivery peiod till 15days

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  • Posted on Dec 02, 2007 at 09:35 AM

    Dear David

    <b>1) Static Credit Limit Check</b>

    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.

    <b>2) 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.


    G. Lakshmipathi

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 03, 2007 at 04:05 AM


    AUTOMATIC CREDIT CHECK : Give extra credit facilities to the particular customer.

    STATIC CREDIT LIMIT DETERMINATION :Checking Group + Risk Catageory + Credit Control Area.

    A) Credit Checking Groups : Types of Checking Groups.

    01) Sales

    02) Deliveries

    03) Goods Issue

    At all the above 3 levels orders can be blocked.

    B) Risk Catageory : Based on the risk catageories company decide how much credit has to give to the customer.



    MEDIUM RISK(0003) : Average Credit

    Static Credit Check it checks all these doc value & check with the credit limit

    1) Open Doc.Value / Sales Order Value : Which is save but not delievered

    2) Open Delivery Doc.Value : Which is delivered but not billed

    3) Open Billing Doc.Value : Which is billed but not posted to FI

    4) Open Item : Which is transfered to FI but not received from the customer.


    2) Open Delivery

    3) Open Billing

    4) Open Items

    5) Horizon Period = Eg.3Months

    Here the System will not consider the above 1,2,3& 4 values for the lost 3 months

    Then assign the Sales Doc & Del Documents.

    Sales Doc.Type(OR) + credit Check(0) + Credit Group (01)

    Credit Limit Check for Delivery Type : Del.Type (LF) + Del Credit

    Group (02) + Goods Issue Credit Group (03)

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