What is external credit line in SAP FS-BA-AN-LM - Limit Manager?

SAP Term: external credit line

• Component: FS-BA-AN-LM

• Component Name: Limit Manager

• Description: Maximum utilization on a key date that is permitted for the accounts of a business partner or group of business partners. This amount is contractually agreed, and is valid for a defined period of time.

Smart SAP Assistant

• Key Concepts: 
  External credit line is a feature of the SAP FS-BA-AN-LM Limit Manager component. It allows companies to set up a credit line with an external lender, such as a bank, and use it to finance their operations. The external credit line is managed by the Limit Manager component, which monitors the company's financial situation and adjusts the credit line accordingly. 
  
  How to use it: 
  To set up an external credit line, companies must first configure the Limit Manager component in SAP. This includes setting up the external lender, defining the terms of the loan, and setting up the credit limit. Once this is done, companies can use the Limit Manager to monitor their financial situation and adjust the credit line accordingly. 
  
  Tips & Tricks: 
  When setting up an external credit line, it is important to ensure that all terms and conditions are clearly defined in order to avoid any misunderstandings or disputes between the company and the lender. Additionally, companies should regularly monitor their financial situation and adjust their credit limit accordingly to ensure that they are not over-extending themselves. 
  
  Related Information: 
  For more information on setting up an external credit line in SAP, please refer to the official SAP documentation on FS-BA-AN-LM Limit Manager. Additionally, there are many online resources available that provide tips and tricks for managing an external credit line in SAP.