What is Account Pooling in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: Account Pooling

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Netting of payables and receivables that, for contractual or legal reasons, are to be grouped into one entity. The balances of the contracts of the pooling group are netted off on a defined main account. This means that the subaccounts that are to be netted are only important in terms of the purpose of the main account. This type of netting pooling of account balances is not to be confused with mitigation by means of collateral, guarantees and credit derivatives and other types of netting.

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• Key Concepts: 
  Account Pooling is a feature of the Credit Risk Management component of SAP Financial Services (FS-BA-PM-CR). It allows companies to group accounts together and manage them as a single entity. This helps to reduce the risk of default by allowing companies to spread their risk across multiple accounts. 
  
  How to use it: 
  Account Pooling can be used to manage credit risk by grouping accounts together and managing them as a single entity. This allows companies to spread their risk across multiple accounts, reducing the risk of default. The feature also allows companies to set up rules for how the pooled accounts should be managed, such as setting limits on the amount of credit that can be extended to each account. 
  
  Tips & Tricks: 
  When setting up Account Pooling, it is important to consider the size and type of accounts that will be included in the pool. It is also important to consider the risk associated with each account and how it will affect the overall risk of the pool. Additionally, it is important to set up rules for how the pooled accounts should be managed, such as setting limits on the amount of credit that can be extended to each account. 
  
  Related Information: 
  For more information on Account Pooling, please refer to SAP’s documentation on Credit Risk Management (https://help.sap.com/viewer/product/SAP_FIN_FS_CRM/). Additionally, there are many online resources available that provide more detailed information on Account Pooling and how it can be used to manage credit risk.