What is 'recoverable amount' in SAP PSM-GM - Grants Management?

recoverable amount - Overview

• Component: PSM-GM

• Component Name: Grants Management

• Description: The amount of an advance agreement line item that has yet to be recovered or cleared by a claim. If an advance is issued, it is earned by the grantee and cleared with actual expenses in the form of a claim.

recoverable amount - Details

• 
  Key Concepts: 
  Recoverable amount is a term used in the SAP PSM-GM Grants Management component. It refers to the amount of money that can be recovered from a grant recipient if they fail to meet the terms of the grant agreement. This amount is typically calculated as a percentage of the total grant amount. 
  
  How to use it: 
  The recoverable amount is determined when the grant agreement is created. It is important to ensure that the recoverable amount is clearly stated in the agreement so that both parties are aware of it. The recoverable amount can then be tracked and monitored throughout the duration of the grant agreement. 
  
  Tips & Tricks: 
  When setting up a grant agreement, it is important to consider the recoverable amount carefully. It should be set at an appropriate level that will ensure compliance with the terms of the agreement without being overly punitive. 
  
  Related Information: 
  The recoverable amount is closely related to other terms such as clawback and penalty clauses. Clawback clauses allow for funds to be recovered if certain conditions are not met, while penalty clauses impose financial penalties for non-compliance with the terms of the agreement.