Authorization Horizon 

Use

The authorization horizon is a time period set in Customizing, which ensures the validity of payment card authorization on the delivery date, that is, on the date when ownership for goods or services transfers from your company to your customer.

The authorization horizon is the number of days between the authorization date and the delivery date. By specifying this number of days, you tell the system how many days before delivery it is to carry out authorization.

The authorization horizon is only relevant when you plan to deliver goods or services weeks or months after creating the transaction. If the delivery date (for sales documents) or the billing date (for service documents) is outside the authorization horizon, the system performs only one preauthorization. For more information, see Preauthorization.

For more information about standard authorization, see Authorization.

Prerequisites

In Customizing, you have made the settings for the authorization horizon and the authorization validity period. In Customizing, choose Customer Relationship Management ® Basic Functions ® Payment Cards ® Settings for Transactions ® Define Checking Group.

Activities

●     By setting the authorization horizon, you control, relative to the delivery date, when authorization occurs.

If you set the authorization horizon to 10 days, and the delivery is scheduled for July 20, the system authorizes the transaction on July 10.

●     By entering the authorization validity period, you tell the system how long the authorization is valid.

If you set the authorization validity period at 14 days and the system authorizes on July 10, the authorization is valid until July 24.

The clearing house may specify the length of the authorization validity period.

Example

...

       1.      You specify the authorization horizon as 10 days long.

       2.      You specify authorization validity period as 14 days long.

       3.      You create a transaction and plan a delivery two months in the future.

       4.      As the delivery approaches, the system determines it is to authorize the transaction 10 days before delivery.

                            a.      As part of this authorization attempt, the system checks how long the authorization is valid, and determines it is valid for 14 days.

                            b.      The system determines that the delivery planned for 10 days’ time takes place within this 14-day-long authorization validity period.

                            c.      The system fully authorizes the transaction.