SAP Knowledge Base Article

2939371 - Dynamic Limit Check with Credit Horizon in SAP Credit Management
(FSCM)
Component: SD-BF-CM (Sales and Distribution > Basic Functions > Credit Management), Version: 6, Released
On: 14.04.2023

Symptom
You are using SAP Credit Management (FSCM) on your system with Dynamic Credit Limit Check (credit check step 030
Credit check with horizon).
It is not clear when sales documents are blocked due to the Dynamic Credit Limit Check and how the Credit Exposure in
Horizon is being updated.

Environment
• Sales and Distribution (SD)
• SAP Credit Management (FSCM)
• SAP ERP
• SAP ERP Central Component
• SAP S/4HANA

Reproducing the Issue

In SAP Credit Management credit checks you maintained Dynamic Credit Limit Check with a selected number of horizon days
on Check Step or on Credit Segment level.
IMG path:
SPRO -->
Financial Supply Chain Management
Credit Management
Credit Risk Monitoring
Credit Limit Check
Define Checking Rules

Resolution
General Principle
The principle of the dynamic credit check is to compare the consumption (credit exposure) within the defined horizon to the
credit limit.
If the consumption within the horizon is exceeding the credit limit, the document is credit blocked.
The dynamic check consists of a dynamic and a static part.
The open deliveries (liability cat. 400), billing documents (liability cat. 500) and open items (liability cat. 200) belong to the
static part. The open sales order items with delivery-related billing (liability cat. 100) belong to the dynamic part.
To the Exposure within Horizon the open order values are updated within the defined time interval. Therefore the method of
the Dynamic Credit Limit Check is the same as in Classic ERP Credit Management in regards that for the dynamic part the
system still uses the static part and all open order values which lie within the predefined credit horizon.
What to consider with Dynamic Credit Limit Check with Credit Horizon in FSCM
1.) Credit horizon of the dynamic check
With FSCM the credit horizon is set in days and the end of the credit horizon is a specific date. This is different compared
to the classic credit management, where the OMO1 time interval of credit value update had an influence on this. See SAP
Note 379007 to compare the behavior.
 You can set a credit horizon for the Check Step in the Check Rule configuration or you can specify different horizon days
based on Credit Segments. See KBA 2926009.
It is advised to select a credit horizon period meaningful for the business. 0 days is not advised as credit horizon, in that
case from the dynamic part only the credit values up to the current date are used.
You can check Credit Horizon and the Credit Exposure in Horizon for the relevant Business Partner/Credit Segment
combination in transaction UKM_BP -> Credit Segment Data tab.
The Credit Check Simulation with Dynamic Credit Check is also showing the credit exposure within horizon and how it
compares to the credit limit.
2.) Updating open sales order values
The credit value update with credit horizon is performed using the material availability date (VBEP-MBDAT) of delivery-
relevant schedule lines if a delivery-related billing has been set for the sales order item.
The Credit Exposure in Horizon can be checked in transaction UKM_BP on Credit Segment level. You can drill down to
list the entries of the different liability categories.
In FSCM the individual credit value updates can be identified based on the 'Key' parameter (Choose Layout and display
the column if not shown).
For Dynamic Credit Check and update the following is relevant:
Commitment of update group 12: <Document number>-<currency>-<item number-schedule line number>-<Material
Availability Date (MBDAT)>​
The sales documents with order-related billing are completely included in the dynamic credit limit check and the entire
value of these orders is updated to the credit exposure. This is further clarified if you check the 'Key' for order-related
billing items in the credit exposure: <Document number>-<currency>. (No material availability date/delivery
date/billing date included as these items are not considered to be updated in time intervals.)
3.) Credit check with horizon
The Dynamic Credit Check is comparing the Credit Exposure in Horizon to the Credit Limit.

In case the Dynamic Credit Check is part of the check rule, then this credit check itself will be triggered when an order is
created or changed - even if the sales order items' material availability date lie outside the credit horizon.
This means that the credit status for the Dynamic Check will be determined.

If the sales order items lie within the horizon, the system simulates the values of the sales order currently being edited
and adds them to the Credit Exposure in Horizon (credit consumption).
If the sales order items lie outside the horizon, they do not increase the consumption.
This is how the material availability date is relevant during credit check - to decide whether the order being processed
should increase the consumption.
However, keep in mind that documents which lie outside the horizon are also credit blocked if the consumption within the
horizon already exceeds the credit limit (that is, if the customer has exceeded the credit limit beforehand).
Attention: In case of FSCM the 'Check' indicator on the Liability Category also has an influence on the Dynamic Credit
check.
IMG => Financial Supply Chain Management => Credit Management => Credit Risk Monitoring => Credit Exposure
Update => Define Liability Categories.
The 'Check' indicator is effective when the system calculates the credit limit utilization. If you set the indicator, the system
includes the corresponding items irrespective of when they are due. This means it also includes items that are not due
within the credit horizon. See further information in KBA 2813497.
4.) Re-check of documents that reach the horizon
If you use the dynamic check, you can still use report RVKRED08 to recheck sales documents that reach the credit
horizon. RVKRED08 report is still available with FSCM on S/4HANA as well.
5.) Update group
As with Classic Credit Management, the update group for dynamic credit check should be set as 000012 - 'Open order
value on time axis, delivery and bill.doct value'.

See Also
The configuration checklist for SAP Credit Management (FSCM) in KBA 2788718.
 Keywords
customizing, SAP Credit Management, FSCM, OVA8, dynamic credit check, horizon, CMGST, Kreditmanagement,
Dynamische Kreditprüfung

Attributes
Key Value

Other Components Financials > Financial Supply Chain Management > Credit Management (FIN-FSCM-CR)

Products
Products

SAP ERP Central Component all versions

SAP ERP all versions

SAP S/4HANA all versions

This document refers to

SAP Component Title
Note/KBA

2926009 SD-BF-CM Credit check step per segment customizing in SAP Credit Management (FSCM)

2813497 SD-BF-CM Sales order beyond credit horizon is considered in credit exposure and Dynamic Credit Check
(FSCM)

2780432

2761313 SD-BF-CM Maintain Credit Checks for SAP Credit Management (FSCM)

379007 SD-BF-CM Dynamic credit limit check

1065954 SD-BF-CM Dynamic credit check for order-related billing

This document is referenced by

SAP Component Title
Note/KBA

2473178 Checked Credit Value and Open Credit Amount in DCD - FSCM

2813497 SD-BF-CM Sales order beyond credit horizon is considered in credit exposure and Dynamic Credit Check
(FSCM)