Sales Orders Outside Credit Horizon

Question

Hi everyone,
My client has implemented FSCM credit management, using a Dynamic credit check with a 6-day credit horizon. 
It was my understanding that for an order where the material availability date of every schedule line is outside the credit horizon, then no credit check is performed on the order.  During testing, it seemed to behave this way--if an order was outside horizon, the credit check status on the order header said "Not Performed" until it entered the horizon, at which point a check was performed by RVKRED08.
What I am seeing now is that every order undergoes a credit check at entry, and receives an "Approved" or "Not approved" credit status.  Orders ouside horizon will always be approved if the customer is below their limit, and are always be blocked if the customer is above the limit.  Does anyone have an idea why SAP did not credit check orders outside the horizon?
Thank you!

Answer 1

Hi David,
If an order was created today with the delivery date after 6 days(lets assume the horixzon period is 6 months).
so taking this perticular order in consideration during credit check will reduce the customer's credit availability. To insure that customer can place current orders with the business,  either business will have to increase his credit limit or block the order and negotiate with customer to pay the previous dues, this option is risky as customer enjoys high credit limit and also wouldnt like to be blocked for the orders which he may need in less than 6 days.
So due to horizon , this order will not be considered in the dynamic credit check as shipping is beyond the horizon, and customer can place new orders within his allocated credit limit. Ensuring for a business to keep credit limits to optimum level and continuous business.
I hope that gives you clear view.
Please close the thread if answered.
Regards,
Paresh Kolte