What is 'offset loss allowance' in SAP FIN-FSCM-TRM-TM - Transaction Manager?

offset loss allowance - Overview

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: The reversal of the loss allowance in a balance sheet-neutral way book value remains unchanged.

offset loss allowance - Details

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  Key Concepts: 
  Offset loss allowance is a feature of SAP Transaction Manager (FIN-FSCM-TRM-TM) that allows companies to offset losses from one transaction against gains from another. This helps to reduce the overall financial impact of losses and can be used to manage risk. 
  
  How to use it: 
  Offset loss allowance can be enabled in SAP Transaction Manager by setting the “Allow Offset Loss” flag to “Yes”. This will allow the system to automatically offset losses from one transaction against gains from another. The system will then calculate the net gain or loss for each transaction and adjust the overall financial impact accordingly. 
  
  Tips & Tricks: 
  When using offset loss allowance, it is important to ensure that the transactions being offset are related in some way. For example, if a company is offsetting losses from a currency exchange transaction against gains from a stock purchase, it is important to ensure that both transactions are related to the same currency. 
  
  Related Information: 
  Offset loss allowance is just one of many features available in SAP Transaction Manager. Other features include payment processing, dispute management, and fraud detection. For more information on these features, please refer to the SAP Transaction Manager documentation.