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

SAP Term: floor

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: A series of interest rate options that can be exercised if the interest rate falls below an agreed minimum interest rate. The interest rate floor is compared to the agreed reference interest rate at predetermined dates. If the reference interest rate is lower than the interest rate floor, the buyer receives a corresponding compensation payment from the seller. Opposite of a cap.

Smart SAP Assistant

• Key Concepts: 
  The term “floor” in the context of SAP Transaction Manager (FIN-FSCM-TRM-TM) refers to the minimum amount of money that must be available in a customer’s account before a transaction can be completed. This is used to ensure that customers have enough funds to cover the cost of the transaction.
  
  How to Use It: 
  In order to use the floor feature, you must first set up a floor limit for each customer. This can be done by accessing the customer’s account in SAP Transaction Manager and setting the floor limit. Once this is done, any transactions that exceed this limit will be blocked until the customer has sufficient funds in their account.
  
  Tips & Tricks: 
  It is important to remember that the floor limit should be set at an appropriate level for each customer. If it is set too low, customers may not be able to complete transactions, while if it is set too high, customers may be able to complete transactions even if they do not have enough funds in their account. 
  
  Related Information: 
  The floor feature is just one of many features available in SAP Transaction Manager. Other features include credit limits, payment terms, and payment methods. All of these features can help ensure that customers are able to complete transactions without any issues.