What is risk country of business partner in SAP (FS-BA-PM-CR - Credit Risk)?

SAP Term: risk country of business partner

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Usually the country in which the business partner is based. For entities that are do not have a separate legal identity such as branches and branch offices, and representative offices the country of the corresponding central office applies.

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• Key Concepts: 
  Risk country of business partner is a component of the Credit Risk Management (FS-BA-PM-CR) module in SAP. It is used to assign a risk country to a business partner, which is used to determine the credit limit for that partner. The risk country is determined based on the address of the business partner, and it is used to calculate the credit limit for that partner. 
  
  How to use it: 
  In order to assign a risk country to a business partner, you must first enter the address of the business partner in SAP. Once the address has been entered, you can then assign a risk country to the business partner. This can be done by navigating to the Credit Risk Management (FS-BA-PM-CR) module and selecting the “Risk Country of Business Partner” option. From there, you can select the appropriate risk country for the business partner. 
  
  Tips & Tricks: 
  It is important to ensure that the address of the business partner is accurate and up-to-date in order for the correct risk country to be assigned. Additionally, it is important to note that different countries may have different credit limits, so it is important to ensure that you are assigning the correct risk country for each business partner. 
  
  Related Information: 
  For more information on how to assign a risk country to a business partner in SAP, please refer to SAP’s official documentation on Credit Risk Management (FS-BA-PM-CR). Additionally, you can find more information on how different countries may have different credit limits in SAP’s official documentation on Country Specific Credit Limits.