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

SAP Term: accounts receivable pledging indicator

• Component: FI-AR

• Component Name: Accounts Receivable

• Description: An indicator for receivables from goods and services that is used for financing purposes. It is merely an indicator that is used for subsequent evaluations; setting the indicator does not trigger any process with a third party for example, bank or credit provider.

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• Key Concepts: 
  The accounts receivable pledging indicator is a feature of the FI-AR Accounts Receivable component of SAP. It is used to indicate whether an account receivable has been pledged as collateral for a loan. This indicator is used to ensure that the account receivable is not used as collateral for more than one loan. 
  
  How to use it: 
  The accounts receivable pledging indicator can be set in the customer master record. When creating a new customer, the user can select the “pledging indicator” checkbox to indicate that the customer’s account receivable has been pledged as collateral for a loan. The user can also change the status of the indicator at any time by unchecking or checking the box. 
  
  Tips & Tricks: 
  It is important to remember to set the accounts receivable pledging indicator when creating a new customer or when changing the status of an existing customer’s account receivable. This will ensure that the account receivable is not used as collateral for more than one loan. 
  
  Related Information: 
  For more information on how to use the accounts receivable pledging indicator, please refer to SAP Help documentation or contact your local SAP support team.