What is 'adjusted guarantee amount' in SAP FS-BA-PM-CR - Credit Risk?

adjusted guarantee amount - Overview

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Nominal amount of a guarantee that takes into account any devaluation due to currency volatility.

adjusted guarantee amount - Details

• 
  Key Concepts: 
  The adjusted guarantee amount is a feature of the Credit Risk Management component of SAP's Financial Services Business Application (FS-BA-PM-CR). It is the amount of a guarantee that has been adjusted to reflect the current risk of the customer. This amount is used to determine the credit limit for a customer and can be adjusted based on changes in the customer's creditworthiness. 
  
  How to use it: 
  The adjusted guarantee amount is used to calculate the credit limit for a customer. The credit limit is determined by subtracting the adjusted guarantee amount from the total amount of credit available to the customer. The adjusted guarantee amount can be adjusted based on changes in the customer's creditworthiness, such as changes in their financial situation or payment history. 
  
  Tips & Tricks: 
  It is important to regularly review and adjust the adjusted guarantee amount for customers in order to ensure that their credit limit accurately reflects their current risk level. This will help to minimize potential losses due to bad debt. 
  
  Related Information: 
  For more information about Credit Risk Management in SAP, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_FS-BA_PM_CR/latest/en-US