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

SAP Term: calculation type

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Is used to define calculation methods more precisely. In the settings specific to the calculation method, the user, by means of the combination of the calculation method, approach, and calculation type, can specify modules for each calculation step. These modules contain the definitions of the individual processing steps that are used to calculate the credit exposure.

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• Key Concepts: 
  Calculation type is a feature of the Credit Risk Management component of SAP FS-BA-PM. It is used to define the calculation logic for credit limits and credit exposure. It is used to determine the risk associated with a customer or vendor and to set the appropriate credit limit. 
  
  How to use it: 
  Calculation type is used to define the calculation logic for credit limits and credit exposure. It can be used to determine the risk associated with a customer or vendor and to set the appropriate credit limit. The calculation type can be set up in the Credit Risk Management component of SAP FS-BA-PM. 
  
  Tips & Tricks: 
  When setting up a calculation type, it is important to consider the risk associated with each customer or vendor. This will help ensure that the appropriate credit limit is set for each customer or vendor. Additionally, it is important to consider any external factors that may affect the risk associated with a customer or vendor, such as their financial history or industry trends. 
  
  Related Information: 
  For more information on setting up calculation types in SAP FS-BA-PM, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed instructions on how to set up calculation types in SAP FS-BA-PM.