What is exposure before CEQ in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: exposure before CEQ

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Represents the amount of the loss expected for each single transaction at the time of default. The exposure before CEQ does not include any risk-mitigating factors.

Smart SAP Assistant

• Key Concepts: 
  Exposure Before CEQ is a feature of the Credit Risk Management component of SAP FS-BA-PM-CR. It allows users to view the exposure of a customer before the Credit Exposure Quota (CEQ) is applied. This helps users to better understand the customer’s credit risk and make more informed decisions. 
  
  How to Use It: 
  To use Exposure Before CEQ, users must first enable the feature in the Credit Risk Management component of SAP FS-BA-PM-CR. Once enabled, users can view the exposure of a customer before the CEQ is applied by selecting the “Exposure Before CEQ” option in the Credit Risk Management menu. 
  
  Tips & Tricks: 
  When using Exposure Before CEQ, it is important to remember that the exposure displayed does not take into account any additional risk factors such as customer payment history or creditworthiness. Therefore, it is important to consider these factors when making decisions based on the exposure displayed. 
  
  Related Information: 
  For more information on Exposure Before CEQ, please refer to the SAP Help documentation for Credit Risk Management in SAP FS-BA-PM-CR.