What is rating in SAP (FS-CML - Loans Management)?

SAP Term: rating

• Component: FS-CML

• Component Name: Loans Management

• Description: A short form for the credit rating of a debtor, or country, or issuer. Judgements are usually based on ratings provided by rating agencies.

Smart SAP Assistant

• Key Concepts: 
  Rating is a feature of the FS-CML Loans Management component of SAP that allows users to assign a numerical value to a loan. This numerical value is used to assess the risk associated with the loan and can be used to determine whether or not the loan should be approved. 
  
  How to use it: 
  In order to use the rating feature, users must first enter the necessary information about the loan into the system. This includes details such as the amount of the loan, the interest rate, and any other relevant information. Once this information has been entered, users can then assign a numerical value to the loan. This numerical value is used to assess the risk associated with the loan and can be used to determine whether or not it should be approved. 
  
  Tips & Tricks: 
  When assigning a rating to a loan, it is important to consider all of the factors that could affect its risk level. This includes factors such as the borrower’s credit history, their income level, and any other relevant information. Additionally, it is important to remember that ratings are not set in stone and can be adjusted as needed. 
  
  Related Information: 
  The rating feature of FS-CML Loans Management is closely related to other features such as credit scoring and credit analysis. Credit scoring is used to assess an individual’s creditworthiness while credit analysis is used to assess an individual’s ability to repay a loan. Both of these features are important when determining whether or not a loan should be approved.