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static and dynamic check

what is exactly difference between static and dynamic credit check

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3 Answers

  • Best Answer
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    Former Member
    Apr 09, 2010 at 08:46 AM

    Hi

    In Static check there is no Horizon period, and in dynamic you have horizon period.

    Horizon period is the duration of the time. If you maintain horizon period as 2 months, then all the open documents that are with in this period are taken for credit check, documents beyond that are not for consideration.

    Regards

    Vamsi Javaji.

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    Former Member
    Apr 09, 2010 at 08:58 AM

    Hi,

    Static and Dynamic credit checks are essentially same with one difference u2013 Dynamic credit check involves checking open sales orders against a date called as u201CCredit Horizonu201D.

    By definition Static Credit check is the sum total of values of -

    (all open sales orders

    +

    all deliveries yet to be invoiced

    +

    all invoices yet to be forwarded to accounting

    +

    all accounting documents against which payments are yet to be received)

    Dynamic credit check is the sum total of values of -

    (all open sales orders until the credit horizon

    +

    all deliveries yet to be invoiced

    +

    all invoices yet to be forwarded to accounting

    +

    all accounting documents against which payments are yet to be received)

    Credit Horizon gives Dynamic credit check its dynamic nature because the value of the open sales orders until the credit horizon becomes dynamic. While calculating the dynamic credit limit the system takes into account only those sales orders which fall within the credit horizon date.

    For more details please see this link

    http://help.sap.com/saphelp_erp60_sp/helpdata/en/7f/1d85347860ea35e10000009b38f83b/frameset.htm

    Cheers,

    Shailabh

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    Former Member
    Apr 09, 2010 at 08:59 AM

    Hi

    Static check

    The customer's credit exposure may not exceed the established credi

    limit. The credit exposure is the total combined value of the follo

    o Open sales documents

    o Open delivery documents

    o Open billing documents

    o Open items (accounts receivable)

    You can specify in the adjacent fields whether the system takes int

    account all open orders and all open deliveries.

    Dynamic check:

    Indicates that the system carries out a dynamic credit limit check

    within a specified credit horizon.

    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 not yet or only partially

    delivered orders. The value is calculated based on the shipping date and

    the credit horizon you specify in the adjacent field. 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

    Damu

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