What is facility type in SAP IS-B-RA-CL - Default Risk and Limit System?

SAP Term: facility type

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Classification of facilities by means of a product term that can be used for facilities only. The limit product group is used to standardize the product terms for the facility type with those for single transactions.

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• Key Concepts: 
  Facility type is a component of the IS-B-RA-CL Default Risk and Limit System. It is used to define the type of facility that is being used in a particular transaction. This could include a loan, a line of credit, or other types of financing. The facility type also determines the risk associated with the transaction and the limits that are set for it. 
  
  How to use it: 
  The facility type is set when a transaction is created in the system. It can be changed at any time during the life of the transaction. The facility type will determine the risk associated with the transaction and the limits that are set for it. It is important to ensure that the correct facility type is selected for each transaction to ensure that the risk and limits are appropriate. 
  
  Tips & Tricks: 
  When selecting a facility type, it is important to consider the purpose of the transaction and the associated risks. Different types of facilities may have different levels of risk associated with them, so it is important to select one that is appropriate for the transaction. Additionally, it is important to ensure that any limits set for the facility are appropriate for the transaction. 
  
  Related Information: 
  The IS-B-RA-CL Default Risk and Limit System provides detailed information about each facility type and its associated risks and limits. Additionally, there are resources available online that provide more information about different types of facilities and their associated risks and limits.