Static credit check is a check which is comparing the credit limit assign to the customer to the total value of open sales order, plus total value of open delivery that are not yet to invoiced plus total amount billing document that are yet to be passed on accounting plus total value of billing amount that are yet to be paid by customer.

Dynamic credit is a check which is comparing the credit limit assign to the customer to the total value of open sales order, plus total value of open delivery that are not yet to invoiced plus total amount billing document that are yet to be passed on accounting plus total value of billing amount that are yet to be paid by customer.

But, difference is that time period (credit horizon) is attached with dynamic credit states that the system is not calculated all open item and all open value after credit horizon. On the other hand, there is not time period is not attached with static credit limit. For this reason, all open items and all open values is taken into account.

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