What is Primary Orbian Credit in SAP FI - Financial Accounting?

SAP Term: Primary Orbian Credit

• Component: FI

• Component Name: Financial Accounting

• Description: A financial obligation that can be issued by an Orbian Member against a line of credit. A Primary Orbian Credit, issued in a particular currency with a specified amount and a precise maturity date, is used by a company to finance the payment of Orbian Credits. To be eligible for a line of credit a business must be an Orbian Member and have an Orbian Sponsor. &EXAMPLE& Orbian Member A sends Orbian an electronic payment instruction in order to pay an invoice with Orbian Member B. Orbian accepts the transaction and issues a Primary Orbian Credit for Member A. At the same time, Orbian issues an Orbian Credit, which is credited to Member B.

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• Key Concepts: 
  Primary Orbian Credit is a feature of the SAP Financial Accounting (FI) module. It is used to manage the credit risk of customers and vendors by providing a credit limit for each customer or vendor. This credit limit is based on the customer or vendor's financial information, such as their credit rating, payment history, and other factors. The primary Orbian Credit component helps to ensure that customers and vendors are not over-extended in terms of their credit limits.
  
  How to Use It: 
  The primary Orbian Credit component can be accessed through the SAP Financial Accounting (FI) module. To set up a customer or vendor's credit limit, you will need to enter their financial information into the system. This includes their credit rating, payment history, and other factors. Once this information is entered, the system will calculate a credit limit for the customer or vendor. This credit limit can then be adjusted as needed.
  
  Tips & Tricks: 
  When setting up a customer or vendor's credit limit, it is important to consider their financial situation and payment history. This will help ensure that they are not over-extended in terms of their credit limit. Additionally, it is important to regularly review the customer or vendor's financial information to ensure that their credit limit remains appropriate.
  
  Related Information: 
  The primary Orbian Credit component is part of the SAP Financial Accounting (FI) module. Other components of this module include Accounts Receivable (AR), Accounts Payable (AP), General Ledger (GL), and Cash Management (CM). Additionally, there are other features within the FI module that can help manage customer and vendor credit risk, such as Credit Risk Analysis (CRA) and Credit Risk Monitoring (CRM).