What is export credit insurance in SAP FI - Financial Accounting?

SAP Term: export credit insurance

• Component: FI

• Component Name: Financial Accounting

• Description: An insurance against loss through the inability of a customer to pay. It is taken out mainly on longer-term receivables for the delivery of goods and services.

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• Key Concepts: 
  Export credit insurance is a type of insurance that provides protection against the risk of non-payment for goods and services that have been exported. It is designed to protect exporters from the risk of non-payment due to political or commercial risks. It is typically provided by a government agency or private insurer. 
  
  How to use it: 
  In SAP Financial Accounting, export credit insurance can be used to protect against the risk of non-payment for goods and services that have been exported. The insurance can be used to cover the cost of goods and services that have been exported, as well as any associated costs such as shipping and handling. The insurance can also be used to cover any losses incurred due to non-payment. 
  
  Tips & Tricks: 
  When setting up export credit insurance in SAP Financial Accounting, it is important to ensure that all relevant information is included in the policy. This includes the type of goods or services being exported, the country of origin, the destination country, and any other relevant information. Additionally, it is important to ensure that all relevant documents are included in the policy, such as invoices, contracts, and other documents related to the export transaction. 
  
  Related Information: 
  For more information on export credit insurance in SAP Financial Accounting, please refer to the SAP Help Portal or contact your local SAP representative. Additionally, there are a number of online resources available that provide more detailed information on export credit insurance and how it can be used in SAP Financial Accounting.