What is 'external commitment' in SAP IS-B-RA-CL - Default Risk and Limit System?

external commitment - Overview

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Upper limit guaranteed by contract to the business partner. Within the contract, the business partner is able to make drawings up to this limit.

external commitment - Details

• 
  Key Concepts: 
  External commitment is a feature of the IS-B-RA-CL Default Risk and Limit System in SAP. It allows users to set up external commitments, which are agreements between a company and an external party that are not part of the company’s internal processes. These commitments can be used to manage risk and limit exposure to potential losses. 
  
  How to use it: 
  External commitments can be set up in the IS-B-RA-CL Default Risk and Limit System in SAP. The user must first define the external commitment, which includes specifying the type of agreement, the terms of the agreement, and any other relevant information. Once the external commitment is defined, it can be used to manage risk and limit exposure to potential losses. 
  
  Tips & Tricks: 
  When setting up an external commitment, it is important to ensure that all relevant information is included in the agreement. This will help ensure that the agreement is valid and enforceable. Additionally, it is important to review the agreement regularly to ensure that it is still valid and up-to-date. 
  
  Related Information: 
  For more information on setting up external commitments in SAP, please refer to the official SAP documentation on IS-B-RA-CL Default Risk and Limit System. Additionally, there are many online resources available that provide detailed instructions on how to set up external commitments in SAP.