What is category of limit item in SAP FS-BA-AN-LM - Limit Manager?

SAP Term: category of limit item

• Component: FS-BA-AN-LM

• Component Name: Limit Manager

• Description: A category that groups together the following values, which are predefined in the system: Master limit Interim limit Limit transfer Risk commitment period You have to enter amounts such as the limit amount or an absolute limit for the "master limit", "interim limit", and "limit transfer" categories. In the case of the "risk commitment period" category, you have to enter the maximum risk commitment period in days. Limit items of the "risk commitment period" category restrict the maximum permitted risk commitment period normally, this is the residual maturity of the utilizations that are to be allocated to the limit.

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• Key Concepts: 
  A category of limit item is a type of limit item that is used in the SAP FS-BA-AN-LM Limit Manager component. It is used to define the characteristics of a limit item, such as its purpose, currency, and other parameters. A limit item can be assigned to one or more categories, allowing for more granular control over the limits that are set. 
  
  How to use it: 
  In order to use a category of limit item, you must first create the category in the Limit Manager component. This can be done by selecting the “Create Category” option from the menu. Once the category has been created, you can then assign limit items to it. This can be done by selecting the “Assign Limit Item” option from the menu and then selecting the appropriate category. 
  
  Tips & Tricks: 
  When creating a category of limit item, it is important to consider how it will be used. For example, if you are creating a category for loan limits, you may want to include parameters such as loan amount and interest rate. This will allow you to easily assign limits to loans based on these parameters. 
  
  Related Information: 
  For more information on using categories of limit items in SAP FS-BA-AN-LM Limit Manager, please refer to the official SAP documentation.