What is revolving loan in SAP FS-AM - Account Management?

SAP Term: revolving loan

• Component: FS-AM

• Component Name: Account Management

• Description: A loan for which when certain repayments are made, the disbursement obligation increases.

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• Key Concepts: 
  A revolving loan is a type of loan that allows the borrower to access funds up to a certain limit, and then repay the loan and access the same funds again. This type of loan is typically used for short-term financing needs. In SAP FS-AM Account Management, revolving loans are used to manage customer accounts and provide customers with access to funds when needed. 
  
  How to use it: 
  In SAP FS-AM Account Management, revolving loans are used to manage customer accounts and provide customers with access to funds when needed. The loan can be set up with a specific limit and repayment terms, and customers can access the funds up to the limit as needed. The repayment terms can be set up so that customers can make payments on a regular basis or as needed. 
  
  Tips & Tricks: 
  When setting up a revolving loan in SAP FS-AM Account Management, it is important to ensure that the repayment terms are clear and easy to understand for the customer. It is also important to ensure that the loan limit is appropriate for the customer’s needs. 
  
  Related Information: 
  SAP FS-AM Account Management also provides other features such as account reconciliation, payment processing, and reporting. For more information on these features, please refer to the SAP documentation.