What is the difference between Static and Dynamic Credit
Check?
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Answer Posted / venksys
Hi,
Static Credit Check: It is the check in which all the values
from open orders to the unpaid delivered goods values are
added up and compared against the credit limit and these
values could be in any stage whether it is in just ordering
stage, or delivery stage, billing stage, billed stage, or
from the past delivereies. System takes up all the values
without any time period.
Dynamic credit check: In this type of check, system checks
from fresh order to already delivered goods which are unpaid
within the particular time period.
For example ; company say s the credit check to be performed
within two dates (Horizon dates) then the system just adds
up all the values of those period only but doesn’t check the
unpaid value before that period, and in that way company
might loose the record of such unpaid values.
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