Static credit limit check:

The customer's credit exposure may not exceed the established credit limit. The credit exposure is the total combined value of the following documents:

• Open orders 
• Open deliveries 
• Open billing documents 
• Open items (accounts receivable) 

*Simple Credit Check :* Tr.Code - FD32

It Considers the Doc.Value + Open Items.

Doc.Value : Sales Order Has been saved but not delivered

Open Item : Sales Order has been saved , Delivered, Billed & Transfered to FI, but not received the payment from the customer.

*Static Credit Check* it checks all these doc value & check with the credit limit

1) Open Doc.Value / Sales Order Value : Which is save but not delievered

2) Open Delivery Doc.Value : Which is delivered but not billed

3) Open Billing Doc.Value : Which is billed but not posted to FI

4) Open Item : Which is transfered to FI but not received from the customer.

Dynamic credit check with Credit Horizon:

The customer's credit exposure is split into a static part; open items, open billing, and delivery values (see above), and a dynamic part, the open order value. The open order value includes all undelivered or only partially delivered orders. The value is calculated on the shipping date and stored in an information structure according to a time period that you specify (days, weeks, or months). When you define the credit check, you can then specify a particular horizon date in the future (for example: 10 days or 2 months, depending on the periods you specify). For the purposes of evaluating credit, you want the system to ignore all open orders that are due for delivery after the horizon date. The sum of the static and dynamic parts of the check may not exceed the credit limit.
 

*Dynamic Credit Check*         1) Open Doc
                                                   2) Open Delivery
                                                   3) Open Billing
                                                   4) Open Items
                                                   5) Horizon Period = Eg.3Months

Here the System will not consider the above 1, 2, 3 & 4 values for the lost 3 months. 

Read also:
Step By Step and What Is Credit Limit Check

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