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

SAP Term: facility

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Contract that relates to precisely one business partner. It contains rules that apply to selected contracts with the business partner.

Smart SAP Assistant

• Key Concepts: 
  Facility is a term used in the FS-BA-PM-CR Credit Risk Management component of SAP. It is a type of loan or line of credit that is extended to a customer by a financial institution. The facility can be used to finance a variety of activities, such as purchasing inventory, making investments, or providing working capital. 
  
  How to use it: 
  In SAP, the facility is set up as an agreement between the customer and the financial institution. The agreement outlines the terms and conditions of the loan, including the amount of money that can be borrowed, the interest rate, and any other fees associated with the loan. Once the agreement is in place, the customer can draw down on the facility as needed. 
  
  Tips & Tricks: 
  When setting up a facility in SAP, it is important to ensure that all of the terms and conditions are accurately entered into the system. This will help to ensure that all transactions related to the facility are properly tracked and accounted for. Additionally, it is important to monitor the facility regularly to ensure that it is being used in accordance with its terms and conditions. 
  
  Related Information: 
  The FS-BA-PM-CR Credit Risk Management component of SAP also includes other features related to facilities, such as credit scoring and monitoring tools. Additionally, there are other components within SAP that can be used to manage facilities, such as Financial Services Management (FSM) and Financial Services Accounting (FSA).