What is 'credit horizon' in SAP FIN-FSCM-CR - Credit Management?

credit horizon - Overview

• Component: FIN-FSCM-CR

• Component Name: Credit Management

• Description: Period, measured in days, in which liabilities from open sales orders are considered.

credit horizon - Details

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  Key Concepts: 
  Credit horizon is a feature of SAP Credit Management that allows customers to set a maximum credit limit for a customer. This limit is based on the customer's creditworthiness and the amount of time they have been a customer. The credit horizon is used to determine the maximum amount of credit that can be extended to a customer. 
  
  How to use it: 
  The credit horizon can be set in the Credit Management module of SAP. The user can enter the customer's creditworthiness and the length of time they have been a customer. The system will then calculate the maximum amount of credit that can be extended to the customer. 
  
  Tips & Tricks: 
  It is important to regularly review and update the credit horizon for customers as their creditworthiness may change over time. This will ensure that customers are not given more credit than they can handle. 
  
  Related Information: 
  The credit horizon is closely related to the Credit Risk Management feature in SAP Credit Management. This feature allows users to monitor and manage their customers' credit risk by setting limits on their exposure to risk.