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

SAP Term: limit

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Amount of a limit.

Smart SAP Assistant

• Key Concepts: 
  The term “limit” in the context of the IS-B-RA-CL Default Risk and Limit System refers to a maximum amount of credit that can be extended to a customer. This limit is set by the company and is used to control the amount of risk associated with extending credit to customers. 
  
  How to use it: 
  The limit is set by the company and can be adjusted as needed. The limit should be set based on the customer’s creditworthiness and the company’s risk tolerance. The limit should also be monitored regularly to ensure that it is not exceeded. 
  
  Tips & Tricks: 
  It is important to set limits that are appropriate for each customer. Setting too low of a limit may result in lost sales, while setting too high of a limit may result in excessive risk. It is also important to review the limits regularly to ensure that they are still appropriate for each customer. 
  
  Related Information: 
  The IS-B-RA-CL Default Risk and Limit System is part of SAP’s Credit Management module, which provides tools for managing credit risk and extending credit to customers. The Credit Management module also includes tools for monitoring customer accounts, setting payment terms, and managing collections.