What is cap in SAP FIN-FSCM-TRM-TM - Transaction Manager?

SAP Term: cap

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: A series of interest rate options that can be exercised if the interest rate exceeds an agreed maximum interest rate or interest rate ceiling. The interest rate cap is compared to the agreed reference interest rate on predefined dates. If the reference interest rate is higher than the interest rate cap, the buyer receives a corresponding compensation payment from the seller. Opposite of a floor.

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• Key Concepts: 
  CAP stands for Credit Authorization and Processing. It is a component of the Transaction Manager (TM) module in the Financial Supply Chain Management (FSCM) suite of SAP software. CAP is used to manage credit authorization and processing for customers, vendors, and other business partners. It helps to ensure that all transactions are properly authorized and processed in a timely manner. 
  
  How to use it: 
  CAP can be used to manage credit authorization and processing for customers, vendors, and other business partners. It allows users to set up credit limits for customers and vendors, as well as monitor their credit status. CAP also provides tools for managing payment terms, payment methods, and payment schedules. Additionally, it can be used to generate reports on customer and vendor credit status. 
  
  Tips & Tricks: 
  When setting up credit limits for customers and vendors, it is important to consider their financial history and creditworthiness. Additionally, it is important to regularly monitor customer and vendor credit status in order to ensure that all transactions are properly authorized and processed in a timely manner. 
  
  Related Information: 
  For more information on CAP, please refer to the SAP Help Portal or contact your SAP support team. Additionally, there are several online resources available that provide detailed information on how to use CAP effectively.