What is interest compensation limit in SAP FS-AM - Account Management?

SAP Term: interest compensation limit

• Component: FS-AM

• Component Name: Account Management

• Description: An amount that the participant accounts of a master contract can have in addition to the credit without incurring overdraft interest in the settlement run standard limit category BCA310.

Smart SAP Assistant

• Key Concepts: 
  Interest compensation limit is a feature of the SAP FS-AM Account Management component. It is used to limit the amount of interest that can be charged on an account. This limit is set by the user and can be adjusted as needed. The limit helps to ensure that customers are not overcharged for interest payments.
  
  How to use it: 
  The interest compensation limit can be set in the SAP FS-AM Account Management component. To do this, go to the “Interest Settings” tab and select “Set Interest Compensation Limit”. Enter the desired limit and click “Save”. The limit will then be applied to all accounts in the system.
  
  Tips & Tricks: 
  It is important to regularly review and adjust the interest compensation limit as needed. This will help ensure that customers are not overcharged for interest payments. Additionally, it is important to keep track of any changes made to the limit so that they can be easily reversed if necessary.
  
  Related Information: 
  For more information about the interest compensation limit, please refer to the SAP FS-AM Account Management documentation. Additionally, you can contact your SAP support team for assistance with setting or adjusting the limit.