What is effective capital (facility), repayment by settlement in SAP FS-AM - Account Management?

SAP Term: effective capital (facility), repayment by settlement

• Component: FS-AM

• Component Name: Account Management

• Description: This capital is based on the SAP calculation base “Effective Capital Loan Facility, Repayment by Settlement” 30000007D. It is used to determine the effective utilization of loans in a facility. In the case of these loans, the system recognizes the repayment portions of the incoming installment only with the next settlement.

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• Key Concepts: 
  Effective capital (facility) is a feature of the SAP FS-AM Account Management component that allows customers to borrow money from a financial institution and repay it in installments. The repayment is done through a settlement process, which involves the customer making payments to the lender on a regular basis. The amount of the payments is determined by the terms of the loan agreement. 
  
  How to use it: 
  In order to use effective capital (facility), customers must first enter into a loan agreement with a financial institution. Once the agreement is in place, customers can then use the SAP FS-AM Account Management component to manage their loan and repayment process. Customers can view their loan balance, make payments, and track their repayment progress. 
  
  Tips & Tricks: 
  It is important to keep track of your loan balance and repayment progress in order to ensure that you are making timely payments and avoiding any potential penalties or fees. Additionally, it is important to read through the terms of your loan agreement carefully in order to understand all of your obligations and rights as a borrower. 
  
  Related Information: 
  For more information about effective capital (facility) and how to use it with SAP FS-AM Account Management, please refer to the official SAP documentation. Additionally, you can contact your financial institution for more information about their specific loan terms and conditions.