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Former Member

Effect of Payment Terms in Credit Management

Can Any One tell me the effect of Payment terms in Credit management. How the effect will be for different Payment terms .and i want to know the implication of it.

Regards

Madhav

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    Former Member
    Jan 07, 2009 at 10:38 AM

    My reqt is that we maintained static credit check. when Payment terms ie 30 days due net. invoice is created . when going to create other order during static check whether it will take that invoice into account or whether it will take after 30 days into account. i want to know the scenario

    will be thankful if any one give answer.

    Regards

    Madhav

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    • Former Member

      I think it will consider that since even though that Invoice is not due yet, it is still an open item and credit will take into account all the open items.

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    Former Member
    Jan 07, 2009 at 06:20 AM

    hello, friend.

    a simple effect of payment terms on credit management is that when a customer open receivables remains uncleared beyond terms set, then credit management will allow the system to automatically either block any sales transactions or issue a warning message when these transactions are processed.

    this feature is complementary to other control parameters such as credit limit (value), document value, open items, longest open items, etc.

    regards.

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