What is accounts receivable pledging in SAP FI-AR - Accounts Receivable?

SAP Term: accounts receivable pledging

• Component: FI-AR

• Component Name: Accounts Receivable

• Description: The transfer of a receivable from the previous creditor to a new creditor.

Smart SAP Assistant

• Key Concepts: 
  Accounts receivable pledging is a feature of the FI-AR Accounts Receivable component of SAP software. It allows companies to pledge their accounts receivable as collateral for a loan or other financial transaction. This feature enables companies to access additional capital without having to liquidate their assets. 
  
  How to use it: 
  To use accounts receivable pledging, companies must first set up the feature in the FI-AR Accounts Receivable component of SAP software. This includes setting up the necessary accounts and defining the terms of the pledge. Once this is done, companies can then pledge their accounts receivable as collateral for a loan or other financial transaction. 
  
  Tips & Tricks: 
  When setting up accounts receivable pledging, it is important to ensure that all necessary accounts are set up correctly and that all terms of the pledge are clearly defined. Additionally, it is important to ensure that all pledged accounts receivable are properly monitored and managed to ensure that they remain in good standing. 
  
  Related Information: 
  For more information on accounts receivable pledging, please refer to the SAP Help Portal or contact your local SAP representative. Additionally, there are many online resources available that provide detailed information on how to set up and use this feature in SAP software.