What is start of payment for default in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: start of payment for default

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Defines the contractually agreed minimum number of securities that must default in a basket of credit derivatives before the collateral provider is obliged to pay. For example: If the minimum number is 3, then the collateral provider need only pay as from the third default in the basket.

Smart SAP Assistant

• Key Concepts: 
  Start of Payment for Default (SPD) is a feature in SAP Credit Risk Management (FS-BA-PM-CR) that allows customers to set a specific date for when payments are due. This date is used to determine when the customer should be notified of any overdue payments. The SPD feature also allows customers to set up payment plans and other payment options. 
  
  How to use it: 
  To use the Start of Payment for Default feature, customers must first set up a payment plan. This plan should include the date when payments are due, as well as any other payment options that may be available. Once the plan is set up, customers can then enter the SPD date into the system. This will allow the system to automatically notify customers of any overdue payments on or after the SPD date. 
  
  Tips & Tricks: 
  When setting up a payment plan, it is important to consider the customer’s financial situation and ability to pay. This will help ensure that payments are made on time and that customers are not overwhelmed with debt. Additionally, it is important to keep track of any changes in the customer’s financial situation so that the payment plan can be adjusted accordingly. 
  
  Related Information: 
  For more information about SAP Credit Risk Management and Start of Payment for Default, please visit SAP’s website at https://www.sap.com/products/credit-risk-management.html. Additionally, there are many online resources available that provide helpful tips and advice on how to use this feature effectively.