What is credit exposure (%) in SAP SD - Sales and Distribution?

SAP Term: credit exposure (%)

• Component: SD

• Component Name: Sales and Distribution

• Description: An amount that indicates the maximum credit allowance used by a customer percentage value.

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• Key Concepts: 
  Credit exposure (%) is a term used in SAP Sales and Distribution (SD) to refer to the percentage of a customer’s credit limit that has been used. It is calculated by dividing the total amount of open items for a customer by the customer’s credit limit. This percentage is then used to determine whether or not a customer should be granted additional credit. 
  
  How to use it: 
  In SAP SD, credit exposure (%) can be found in the customer master record. To view this information, go to the Sales and Distribution tab in the customer master record and select “Credit Exposure” from the drop-down menu. This will display the current credit exposure (%) for the customer. 
  
  Tips & Tricks: 
  It is important to keep an eye on a customer’s credit exposure (%) as it can be an indicator of potential financial risk. If a customer’s credit exposure (%) is too high, it may be necessary to take steps to reduce their risk, such as reducing their credit limit or requiring them to pay off some of their outstanding invoices. 
  
  Related Information: 
  For more information on credit exposure (%) in SAP SD, please refer to the SAP Help Portal or contact your local SAP support team.