What is calculation level in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: calculation level

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Controls up to which level the system calculates risk values. The calculation is comprised of the following calculation levels: Calculation level 0 = enrichment Calculation level 1 = calculation at single-transaction level in the context of Basel II determination of the EAD Calculation level 2 = inclusion of collateral and guarantees in the context of Basel II determination of the regulatory capital requirement.

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• Key Concepts: 
  Calculation level is a feature of the Credit Risk Management component of SAP FS-BA-PM-CR. It is used to define the level of detail for credit risk calculations. This includes the number of days for which the credit risk should be calculated, the number of days for which the credit risk should be monitored, and the number of days for which the credit risk should be reported. 
  
  How to use it: 
  The calculation level can be set in the Credit Risk Management component of SAP FS-BA-PM-CR. To do this, go to the Credit Risk Management tab and select “Calculation Level” from the dropdown menu. From there, you can set the number of days for which the credit risk should be calculated, monitored, and reported. 
  
  Tips & Tricks: 
  It is important to set an appropriate calculation level in order to ensure that your credit risk calculations are accurate and up-to-date. It is also important to remember that different calculation levels may be required for different types of credit risk calculations. 
  
  Related Information: 
  For more information on setting calculation levels in SAP FS-BA-PM-CR, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed instructions on how to use this feature.