What is committed limit in SAP FS-AM - Account Management?

SAP Term: committed limit

• Component: FS-AM

• Component Name: Account Management

• Description: The amount agreed with or communicated to the contract holder. This amount can be withdrawn from the account in addition to the credit balance standard limit category BCA010. The withdrawal from loans accounts FS-CML uses order category Disbursement. On this master contract, this limit can be used for checks such as the global limit check on facilities, or for the calculation of provision commission in the combined settlement standard limit category BCA31.

Smart SAP Assistant

• Key Concepts: 
  Committed limit is a feature of the FS-AM Account Management component of SAP. It is a limit that is set by the user to control the amount of money that can be spent on a particular account. This limit is set in order to ensure that the account does not exceed its budget and to prevent overspending. 
  
  How to use it: 
  In order to use the committed limit feature, the user must first set up an account in FS-AM. Once the account is created, the user can then set a committed limit for that account. This limit can be adjusted at any time, depending on the user’s needs. 
  
  Tips & Tricks: 
  It is important to remember that the committed limit should be set at a level that is appropriate for the account’s budget. Setting it too low may result in overspending, while setting it too high may result in unnecessary spending. It is also important to keep track of any changes made to the committed limit, as this can affect the budget of the account. 
  
  Related Information: 
  For more information about FS-AM Account Management and its features, please refer to SAP’s official documentation. Additionally, there are many online resources available that provide tutorials and tips on how to use this component of SAP.