What is 'central bank eligibility' in SAP FS-LRM - Liquidity and Risk Management?

central bank eligibility - Overview

• Component: FS-LRM

• Component Name: Liquidity and Risk Management

• Description: A state in which a class of assets may be pledged as collateral with central banks for intraday credit, for example.

central bank eligibility - Details

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  Key Concepts: 
  Central bank eligibility is a feature of SAP’s FS-LRM Liquidity and Risk Management component. It allows companies to determine which of their financial instruments are eligible for central bank transactions. This helps companies manage their liquidity and risk by ensuring that they are able to access the necessary funds when needed. 
  
  How to use it: 
  Central bank eligibility can be used to identify which financial instruments are eligible for central bank transactions. This can be done by setting up a central bank eligibility rule in the FS-LRM Liquidity and Risk Management component. The rule will specify which financial instruments are eligible for central bank transactions. 
  
  Tips & Tricks: 
  It is important to ensure that the central bank eligibility rule is set up correctly, as this will ensure that the company is able to access the necessary funds when needed. Additionally, it is important to regularly review the rule to ensure that it is up-to-date and accurate. 
  
  Related Information: 
  For more information on setting up a central bank eligibility rule in SAP’s FS-LRM Liquidity and Risk Management component, please refer to the official SAP documentation. Additionally, there are many online resources available that provide further information on this topic.