What is authorized amount in SAP SD - Sales and Distribution?

SAP Term: authorized amount

• Component: SD

• Component Name: Sales and Distribution

• Description: The amount approved by the clearing house.

Smart SAP Assistant

• Key Concepts: 
  Authorized amount is a term used in SAP Sales and Distribution (SD) to refer to the maximum amount of money that a customer is allowed to spend on a particular order. This amount is set by the customer's credit limit and is used to ensure that the customer does not exceed their credit limit when placing orders. 
  
  How to use it: 
  When creating an order in SAP SD, the system will check the customer's credit limit and set the authorized amount accordingly. This amount will be displayed in the order and can be adjusted if necessary. If the customer attempts to exceed their authorized amount, they will be notified and the order will not be processed until the authorized amount is adjusted. 
  
  Tips & Tricks: 
  It is important to keep track of a customer's authorized amount as it can change over time due to changes in their credit limit or other factors. It is also important to ensure that the authorized amount is set correctly when creating an order, as exceeding it can lead to delays in processing the order. 
  
  Related Information: 
  The authorized amount is related to other terms such as credit limit, order value, and payment terms. It is also related to other processes such as invoicing and payment processing. Understanding how these terms and processes interact can help ensure that orders are processed correctly and efficiently.