What is amount reservation in SAP FS-MCM-ODP - Overdraft Protection?

SAP Term: amount reservation

• Component: FS-MCM-ODP

• Component Name: Overdraft Protection

• Description: Flag for a future debit posting. Master Contract Management FS-MCM initiates an amount reservation for the overdraft protection for each debit posting on a funding account in the account managing system. This ensures that the transfer amount is on the funding accounts at the time of the payment order posting via which the funds are transferred. &EXAMPLE& Account Management FS-AM is connected as the account managing system. In this system, the amount reservations are converted to prenotes. When the recipient items are posted for the corresponding payment order, the prenotes are cancelled.

Smart SAP Assistant

• Key Concepts: 
  Amount reservation is a feature of the FS-MCM-ODP Overdraft Protection component of SAP. It allows users to reserve a certain amount of funds for a specific purpose, such as a payment or transfer. This ensures that the funds are available when needed and prevents them from being used for other purposes. 
  
  How to use it: 
  To use amount reservation, users must first set up an overdraft protection account in SAP. This account will be used to store the reserved funds. Once the account is set up, users can then reserve an amount of funds for a specific purpose. The reserved funds will be held in the overdraft protection account until they are needed. 
  
  Tips & Tricks: 
  When setting up an overdraft protection account, it is important to ensure that the account has sufficient funds to cover the amount being reserved. This will ensure that the reserved funds are available when needed. Additionally, it is important to keep track of the reserved funds and make sure they are used for their intended purpose. 
  
  Related Information: 
  For more information on amount reservation and other features of the FS-MCM-ODP Overdraft Protection component of SAP, please refer to the official SAP documentation.