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What is the credit horizon in credit management
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Answer Posted / 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
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