What is threshold in SAP EPM-FC-SK - FC Starter Kit for IFRS?

SAP Term: threshold

• Component: EPM-FC-SK

• Component Name: FC Starter Kit for IFRS

• Description: Minimum value used in specific reconciliation reports to exclude alreadyreconciliated amounts

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• Key Concepts: 
  A threshold is a value that is used to determine when a certain action should be taken. In the context of the EPM-FC-SK FC Starter Kit for IFRS 16, a threshold is used to determine when a lease should be classified as a finance lease or an operating lease. 
  
  How to use it: 
  The threshold is set by the user and can be adjusted depending on the specific needs of the company. The threshold is used to determine whether a lease should be classified as a finance lease or an operating lease. If the value of the lease exceeds the threshold, it will be classified as a finance lease. If the value of the lease is below the threshold, it will be classified as an operating lease. 
  
  Tips & Tricks: 
  It is important to set an appropriate threshold that accurately reflects the company’s needs. Setting too low of a threshold may result in leases being incorrectly classified, while setting too high of a threshold may result in leases being incorrectly classified as well. 
  
  Related Information: 
  The EPM-FC-SK FC Starter Kit for IFRS 16 also includes other features such as automatic recognition of leases, automatic calculation of lease payments, and automatic recognition of changes in terms and conditions.