What is add-on factor in SAP IS-B-RA-CL - Default Risk and Limit System?

SAP Term: add-on factor

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Percentage rate that has to be multiplied by the assessment basis of the transaction that is to be valued in order to obtain the add-on.

Smart SAP Assistant

• Key Concepts: 
  Add-on factor is a component of the IS-B-RA-CL Default Risk and Limit System. It is a numerical value that is used to adjust the risk and limit values of a customer or counterparty. The add-on factor is calculated based on the customer's creditworthiness, and it can be used to increase or decrease the risk and limit values.
  
  How to use it: 
  The add-on factor can be used to adjust the risk and limit values of a customer or counterparty. The add-on factor is calculated based on the customer's creditworthiness, and it can be used to increase or decrease the risk and limit values. The add-on factor can be adjusted manually by the user, or it can be automatically calculated by the system.
  
  Tips & Tricks: 
  When adjusting the add-on factor manually, it is important to consider the customer's creditworthiness and other factors that may affect their risk and limit values. Additionally, it is important to ensure that the add-on factor does not exceed the maximum allowed value for the customer or counterparty.
  
  Related Information: 
  The IS-B-RA-CL Default Risk and Limit System also includes other components such as credit limits, collateral requirements, and exposure limits. These components are used in conjunction with the add-on factor to determine a customer or counterparty's risk and limit values. Additionally, there are other SAP systems that use similar components to calculate risk and limit values.