What is limit area in SAP FS-BA-AN-LM - Limit Manager?

SAP Term: limit area

• Component: FS-BA-AN-LM

• Component Name: Limit Manager

• Description: Highest level of segmentation in . Risks are sorted into logically separate segments, for example, counterparty risk is separated from country risk.

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• Key Concepts: 
  Limit area is a component of the SAP FS-BA-AN-LM Limit Manager. It is used to define and manage limits for customers, such as credit limits, payment terms, and other financial parameters. The limit area is a collection of limit values that are assigned to a customer or group of customers. 
  
  How to use it: 
  The limit area can be used to set up and manage customer limits. This includes setting up credit limits, payment terms, and other financial parameters. The limit area can also be used to monitor customer activity and ensure that customers are not exceeding their limits. 
  
  Tips & Tricks: 
  When setting up the limit area, it is important to ensure that the correct limit values are assigned to each customer or group of customers. It is also important to regularly monitor customer activity to ensure that they are not exceeding their limits. 
  
  Related Information: 
  The SAP FS-BA-AN-LM Limit Manager is part of the SAP Financial Services suite of products. It can be used in conjunction with other SAP Financial Services products, such as the SAP Credit Management module, to provide a comprehensive solution for managing customer limits.