What is unauthorized overdraft of an external limit in SAP FS-BA-AN-LM - Limit Manager?

SAP Term: unauthorized overdraft of an external limit

• Component: FS-BA-AN-LM

• Component Name: Limit Manager

• Description: Currency-based key figure for a particular key date. Amount by which the facility is exceeded = max utilization on a key date of all the accounts related to the facility - external facility, 0 The amount by which the facility is exceeded is valid on the key date only. The amounts of the internal and the external facility can be exceeded.

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• Key Concepts: 
  Unauthorized overdraft of an external limit is a situation in which a customer exceeds the credit limit set by their bank or other financial institution. This can occur when a customer makes a purchase or withdrawal that exceeds the amount of available funds in their account. The FS-BA-AN-LM Limit Manager component of SAP helps to manage and monitor these external limits, ensuring that customers do not exceed their credit limits. 
  
  How to use it: 
  The FS-BA-AN-LM Limit Manager component of SAP allows users to set up and manage external limits for customers. This includes setting up the limit, monitoring it, and taking action if the customer exceeds the limit. The component also allows users to view and analyze customer data, such as current balance and credit limit, to help them make informed decisions about how to manage the customer’s account. 
  
  Tips & Tricks: 
  It is important to regularly monitor customer accounts to ensure that they are not exceeding their external limits. This can be done by setting up automated alerts or notifications when a customer’s balance reaches a certain level. Additionally, it is important to review customer data regularly to ensure that the external limits are appropriate for each customer’s needs. 
  
  Related Information: 
  The FS-BA-AN-LM Limit Manager component of SAP is part of the Financial Services suite of products. It is designed to help financial institutions manage and monitor their customers’ accounts more effectively. Other components in this suite include FS-BA-AN-CA Cash Management, FS-BA-AN-CR Credit Risk Management, and FS-BA-AN-TR Treasury Risk Management.