What is 'credit commitment' in SAP FS-MCM-FAC - Facilities?

credit commitment - Overview

• Component: FS-MCM-FAC

• Component Name: Facilities

• Description: Committed limit in the master contract or on the participating account.

credit commitment - Details

• 
  Key Concepts: 
  Credit commitment is a feature of the Facilities Management component of SAP that allows customers to set up a credit limit for their vendors. This credit limit is used to ensure that the vendor does not exceed the amount of credit that has been agreed upon. The credit commitment feature also allows customers to monitor and control their vendor’s credit usage. 
  
  How to use it: 
  To use the credit commitment feature, customers must first set up a credit limit for their vendors. This can be done by entering the vendor’s name and the desired credit limit in the system. Once this is done, the system will automatically monitor and control the vendor’s credit usage. Customers can also view their vendor’s current credit usage and make adjustments as needed. 
  
  Tips & Tricks: 
  It is important to keep an eye on your vendor’s credit usage to ensure that they do not exceed the agreed upon limit. If they do, it could result in additional fees or penalties. Additionally, customers should review their vendor’s credit usage regularly to ensure that they are not overspending. 
  
  Related Information: 
  For more information about the Facilities Management component of SAP, please visit the SAP website at https://www.sap.com/products/facilities-management.html. Additionally, you can find more information about setting up and managing credit commitments in SAP by visiting the SAP Help Portal at https://help.sap.com/viewer/product/SAP_FACILITIES_MANAGEMENT/latest/en-US/.