What is 'threshold balance' in SAP FS-LMS - Liquidity Management Suite?

threshold balance - Overview

• Component: FS-LMS

• Component Name: Liquidity Management Suite

• Description: Defines the maximum or minimum account balance.

threshold balance - Details

• 
  Key Concepts: 
  Threshold balance is a feature of the SAP FS-LMS Liquidity Management Suite. It allows users to set a minimum balance for their accounts, and if the balance falls below this threshold, an alert is triggered. This alert can be used to take corrective action, such as transferring funds from another account or requesting additional funds from a lender. 
  
  How to use it: 
  To use the threshold balance feature, users must first set up their accounts in the SAP FS-LMS Liquidity Management Suite. Once the accounts are set up, users can specify a minimum balance for each account. If the balance of any account falls below this threshold, an alert will be triggered. 
  
  Tips & Tricks: 
  It is important to set realistic thresholds for each account. Setting too low of a threshold may result in too many alerts being triggered, while setting too high of a threshold may result in not enough alerts being triggered. It is also important to ensure that the accounts are properly monitored and that corrective action is taken when necessary. 
  
  Related Information: 
  The SAP FS-LMS Liquidity Management Suite also includes features such as cash flow forecasting and liquidity planning. These features can be used in conjunction with the threshold balance feature to ensure that accounts are properly managed and that liquidity risks are minimized.