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

SAP Term: limit reservation

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Enables the free part of a limit to be reserved for a particular period of time. The attributable amounts can either be calculated from basic key figures or they can be entered directly with the reservation.

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• Key Concepts: 
  Limit reservation is a feature of the IS-B-RA-CL Default Risk and Limit System in SAP. It allows users to reserve a certain amount of credit limit for a customer or vendor, which can be used to cover future transactions. This helps to ensure that the customer or vendor does not exceed their credit limit and helps to prevent any potential financial losses. 
  
  How to use it: 
  To use limit reservation, users must first set up a credit limit for the customer or vendor in the system. Once this is done, they can then reserve a certain amount of the credit limit for future transactions. This can be done by entering the amount of the reservation in the “Reservation” field in the system. The reserved amount will then be deducted from the customer or vendor’s available credit limit. 
  
  Tips & Tricks: 
  It is important to remember that limit reservations are only valid for a certain period of time. If the transaction is not completed within this period, the reservation will be cancelled and the reserved amount will be returned to the customer or vendor’s available credit limit. 
  
  Related Information: 
  For more information on limit reservations and other features of the IS-B-RA-CL Default Risk and Limit System, please refer to SAP’s official documentation.