What is revocability of an external facility in SAP FS-BA-AN-LM - Limit Manager?

SAP Term: revocability of an external facility

• Component: FS-BA-AN-LM

• Component Name: Limit Manager

• Description: Depends upon the ability of the creditor to revoke the external facility at any time and unconditionally. Usually, credit commitments that are valid for a day, and credit commitments that are valid until further notice, are considered as revocable external facilities.

Smart SAP Assistant

• Key Concepts: 
  Revocability of an external facility is a feature of the SAP FS-BA-AN-LM Limit Manager component. It allows a user to revoke an external facility, such as a loan or line of credit, that has been granted to a customer. This feature helps to ensure that the customer is not taking on more debt than they can handle and that the lender is not overextending themselves. 
  
  How to use it: 
  To use the revocability of an external facility feature, the user must first create a limit in the Limit Manager component. This limit should be set to the maximum amount of debt that the customer can take on. The user then grants an external facility to the customer, such as a loan or line of credit. If at any point the customer exceeds their limit, the user can revoke the external facility to prevent them from taking on more debt. 
  
  Tips & Tricks: 
  It is important to keep track of the customer’s debt and ensure that they are not taking on more than they can handle. The revocability of an external facility feature can help with this by allowing the user to revoke any external facilities that have been granted if they exceed their limit. 
  
  Related Information: 
  The revocability of an external facility feature is part of the SAP FS-BA-AN-LM Limit Manager component. This component also includes features such as limit monitoring and limit management, which can help users manage their customers’ debt more effectively.