What is funding account in SAP FS-MCM-ODP - Overdraft Protection?

SAP Term: funding account

• Component: FS-MCM-ODP

• Component Name: Overdraft Protection

• Description: An account from which an amount can be transferred to a funded account in overdraft protection. The assignment of funding accounts to a funded account is made by defining contract relationships in the master contract.

Smart SAP Assistant

• Key Concepts: 
  A funding account is a type of account used in SAP’s FS-MCM-ODP Overdraft Protection component. It is a special account that is used to provide additional funds to cover overdrafts on other accounts. The funding account is typically linked to a line of credit or other source of funds, and it can be used to cover overdrafts on other accounts up to the limit of the line of credit. 
  
  How to use it: 
  In order to use a funding account, you must first set up the account in SAP’s FS-MCM-ODP Overdraft Protection component. Once the account is set up, you can link it to other accounts in order to provide additional funds when needed. When an overdraft occurs on one of the linked accounts, the funds from the funding account will be used to cover the overdraft up to the limit of the line of credit. 
  
  Tips & Tricks: 
  When setting up a funding account, it is important to make sure that you have sufficient funds available in the line of credit or other source of funds in order to cover any potential overdrafts. Additionally, it is important to monitor the linked accounts regularly in order to ensure that there are no unexpected overdrafts. 
  
  Related Information: 
  For more information about setting up and using a funding account in SAP’s FS-MCM-ODP Overdraft Protection component, please refer to SAP’s documentation on the topic. Additionally, you can contact your SAP representative for more information and assistance with setting up and using a funding account.