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

SAP Term: relationship category

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Contract relationship that is to be analyzed. An example of a relationship category is A is collateral for B.

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• Key Concepts: 
  Relationship category is a feature of the Credit Risk Management (CRM) component of the Financial Services Business Application Platform (FS-BA-PM). It is used to define the relationship between a customer and a company, such as a supplier, partner, or customer. This relationship can be used to determine the credit risk associated with the customer. 
  
  How to use it: 
  The relationship category is used to define the relationship between a customer and a company. This can be done by assigning a specific category to each customer. The categories can be customized to fit the needs of the company. For example, a company may assign different categories for customers who are suppliers, partners, or customers. Once the categories are assigned, they can be used to determine the credit risk associated with each customer. 
  
  Tips & Tricks: 
  When assigning relationship categories, it is important to consider the type of relationship that exists between the customer and the company. For example, if a customer is a supplier, they should be assigned a different category than if they are a partner or customer. Additionally, it is important to consider any other factors that may affect the credit risk associated with the customer, such as their payment history or financial stability. 
  
  Related Information: 
  The Credit Risk Management component of FS-BA-PM also includes features such as credit scoring and credit limit management. These features can be used in conjunction with the relationship category feature to further assess and manage credit risk associated with customers. Additionally, there are other components of FS-BA-PM that can be used to manage financial services operations, such as accounting and reporting.