22 March

Commitment limit (SAP Business One)

Definition:
The exposure limit is a credit management tool in SAP Business One and is used to limit financial risks in relation to Customers. It works in a similar way to the credit limit, but also includes customer cheques that the company has but have not yet been submitted to the bank.


SAP Business One Finance Training

Functionality:

  • The exposure limit includes:

- Outstanding receivables from the customer
- Customer cheques not yet deposited

  • In contrast to the pure Credit limit the exposure limit thus provides a more comprehensive picture of the total financial burden of a business partner.

Care and administration:

  • The exposure limit can already be terms of payment be deposited.
  • Individual customisations are Business partner master record possible.
  • The field "Maintain exposure limit" is located in the business partner data.
  • The limits can be set or overwritten separately for each customer.

Settings and system behaviour:

  • Among administration > System initialisation > General settings > GP tab It can be configured whether, if the credit or exposure limit is exceeded, a Warning message appears.
  • This function supports the Receivables management and reduces the risk of payment defaults.

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