What is authorization limit in SAP FS-CM - Claims Management?

SAP Term: authorization limit

• Component: FS-CM

• Component Name: Claims Management

• Description: Type of limit in the authorization check for processing reserves. If this type of limit is exceeded, a superior is instructed via workflow to examine the reserve amount that has been exceeded.The superior must then approve or reject the reserve amount that exceeds the limit. In contrast to the "Notification Limit", the amount in excess of the limit is given the status of "Pending". As long as the amount has the status of "Pending", it is not available meaning that no payment can be made.The amount is not available until the superior has approved it. &EXAMPLE& The reserve amount in a claim is USD 5000. A performer wants to increase the reserve by USD 5000 to USD 10000 in total. According to the Customizing settings, the limit for the user group to which the performer belongs is USD 7500. In this case, the system sets the reserve to the limit permitted for this performer in other words, to USD 7500. The remaining amount of USD 2500 is given the status of "Pending".

Smart SAP Assistant

• Key Concepts: 
  Authorization limit is a feature in SAP FS-CM Claims Management that allows users to set a maximum amount of money that can be authorized for a claim. This limit is set by the user and can be adjusted as needed. The authorization limit helps to ensure that claims are not overspent and that the company’s budget is not exceeded. 
  
  How to use it: 
  To set an authorization limit, the user must first log into the SAP FS-CM Claims Management system. Once logged in, the user can navigate to the “Authorization Limits” page. Here, the user can enter the maximum amount of money that can be authorized for a claim. The user can also adjust this limit as needed. 
  
  Tips & Tricks: 
  It is important to remember that authorization limits are not absolute and can be adjusted as needed. It is also important to keep track of the authorization limits for each claim, as exceeding the limit could result in overspending and budget issues. 
  
  Related Information: 
  For more information on authorization limits in SAP FS-CM Claims Management, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/FS-CM/2020/en-US