What is the credit horizon in credit management
Answers were Sorted based on User's Feedback
Answer / rajiv trivedi
In automatic Credit Check when we give some time period say
2 months,then it is called credit horizon i.e. Dynamic
Check.
if u give the horizon period 2 months, then the system will
not consider the open sales orders, open delivery, open
invoices due which has the dates after the horizon
period.Means customer's credit worthiness or say payable
for certain time period & not the total credit for more
than certain period.
If for this time frame credit amount is exceeding, no
further business will be dealt till certain amount is being
paid. Credit Check is made here.
Is This Answer Correct ? | 10 Yes | 1 No |
Answer / venkat
The orders that are due for delivry are not taken into the
calculation of credit used by the customer.
Ex: Suppose Hoirizon period is 30 days
One Order is created on 1st August and scheduled to deliver
2nd september,
that means this Order is open for the 30 days from the 1st
August to 30th August, so this order value is not considered
into the Credit Usage(Credit Exposure) of the customer
Is This Answer Correct ? | 5 Yes | 0 No |
Answer / rajesh kosuri
The horizon period gives additional limit of time to consider
open sales orders so that the customer will get additional credit then actually given.
Is This Answer Correct ? | 1 Yes | 0 No |
Answer / akhilesh kumar
In automatic Credit Check when we give some time period say
2 months,then it is called credit horizon i.e. Dynamic
Check.
if u give the horizon period 2 months, then the system will
not consider the open sales orders, open delivery, open
invoices due which has the dates after the horizon
period.Means customer's credit worthiness or say payable
for certain time period & not the total credit for more
than certain period.
AKHILESH: what is said above is half right.
the system will check the delivery date if it falls after the end of 2 months i.e. from new month only it will not consider for credit check.
eg. if yo uare ordering on 25.04.2017 and credit horizon is 2 months then as per your explanation, if the delivery date is 26.06.2017 then it should not block.
but it will check and if exceeds, then the system will apply credit block till 30.06.2017 and it will not apply block after this date i.e from 01.07.2107 only system will not apply block. This is because the month end closing in finance happen on either monthly / yearly. so it will check till the end of the month.
You all can check.
thanks
Akhilesh
Is This Answer Correct ? | 0 Yes | 0 No |
Answer / subha
When we give credit horzon to simple credit it becomes
dynamaic credit . It is the time frame within wich the
customer must make the payment and once it cross then then
fi teams does the dunning process
Is This Answer Correct ? | 0 Yes | 6 No |
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