What is 'determination of the free line for facilities' in SAP FS-BA-PM-GM - General Calculation and Valuation Methods?

determination of the free line for facilities - Overview

• Component: FS-BA-PM-GM

• Component Name: General Calculation and Valuation Methods

• Description: The determination of the difference between the external limit or global limit and the utilization or cumulated utilization for a hierarchical grouping of related transactions facility group. The process can be executed for facilities and for individual contracts.

determination of the free line for facilities - Details

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  Key Concepts: 
  The determination of the free line for facilities is a process in the SAP FS-BA-PM-GM General Calculation and Valuation Methods component. This process is used to determine the free line for a facility, which is the maximum amount of money that can be borrowed without additional collateral or security. 
  
  How to use it: 
  The determination of the free line for facilities is done by calculating the value of the facility and subtracting any existing liabilities. The resulting value is then compared to the maximum loan amount that can be borrowed without additional collateral or security. If the value is greater than the maximum loan amount, then additional collateral or security will be required. 
  
  Tips & Tricks: 
  When calculating the free line for a facility, it is important to consider any existing liabilities that may affect the value of the facility. Additionally, it is important to consider any additional costs associated with borrowing more than the maximum loan amount, such as interest rates and fees. 
  
  Related Information: 
  The determination of the free line for facilities is an important part of managing financial risk in SAP FS-BA-PM-GM General Calculation and Valuation Methods. For more information on this process, please refer to SAP’s documentation on Financial Risk Management in SAP FS-BA-PM-GM General Calculation and Valuation Methods.