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

SAP Term: limit transfer

• Component: IS-B-RA-CL

• Component Name: Default Risk and Limit System

• Description: Enables the amount of one limit to be reduced in favor of another limit for a defined period of time and by a specified amount. Limit transfers can be used to ensure that risk capital is allocated efficiently

Smart SAP Assistant

• Key Concepts: 
  Limit transfer is a feature of the IS-B-RA-CL Default Risk and Limit System in SAP. It allows users to transfer limits from one account to another, allowing them to manage their risk more effectively. The limit transfer feature also allows users to set up a limit transfer hierarchy, which can be used to control the flow of limits between accounts. 
  
  How to use it: 
  To use the limit transfer feature, users must first set up a limit transfer hierarchy. This hierarchy defines the flow of limits between accounts and can be used to control the amount of risk taken on by each account. Once the hierarchy is set up, users can then transfer limits from one account to another. This can be done manually or automatically, depending on the user's preferences. 
  
  Tips & Tricks: 
  When setting up a limit transfer hierarchy, it is important to consider the risk associated with each account. This will help ensure that the limits are transferred in a way that minimizes risk and maximizes returns. Additionally, it is important to monitor the limit transfers regularly to ensure that they are being used effectively and efficiently. 
  
  Related Information: 
  For more information about limit transfers and how they can be used in SAP, please refer to the IS-B-RA-CL Default Risk and Limit System documentation. Additionally, there are many online resources available that provide tips and tricks for using limit transfers in SAP.