Static vs Dynamic Credit Check

Static :: Combined value of

1. Open Orders {Orders not yet delivered}
   
2. Open Deliveries {Deliveries not yet invoiced}
   
3. Open Invoices {Invoices not forwarded to Accounting}
   
4. Open A/R Items
   

Dynamic :: Combined value of

1. Dynamic Part {Open Order Value}
   
2. Open Deliveries
3. Open Invoices
4. Open A/R Items

The open order value is stored in an info structure and a date range is specified called the horizon. So only totals 2 , 3, 4 are considered in dynamic credit check. All open orders beyond the specified horizon is not considered.

More Details on SAP Credit Management and SAP SD Training here.