Overdraft Value 

Use

This function calculates the value for the overdraft of a receivable.

The standard system defines an overdraft as the difference between the amount for the current risk and the amount for the maximum risk of the receivables, where the current risk is greater than the maximum risk. The maintenance and management of overdrafts must be done in the external receivable management system. The standard system only provides the possibility for collateralization of overdrafts for receivables.

To collateralize overdrafts, you must select the component type as Over draft while defining the collateral scope of the collateral agreement.

 

Activities

The system calculates the value of overdraft using the following equation:

Overdraft value = Receivable current risk amount – receivable maximum risk amount