What is physical collateral in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: physical collateral

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: All categories of collateral that have a physical form. For example, all types of real estate, or movable property such as cars and ships.

Smart SAP Assistant

• Key Concepts: 
  Physical collateral is a type of security that is used to secure a loan or other financial obligation. It is a tangible asset, such as real estate, vehicles, or equipment, that can be seized by the lender if the borrower defaults on the loan. 
  
  How to use it: 
  In SAP Credit Risk Management (FS-BA-PM-CR), physical collateral can be used to secure a loan or other financial obligation. The collateral can be registered in the system and monitored for changes in value. The system can also generate reports on the collateral's value and any changes that have occurred. 
  
  Tips & Tricks: 
  When registering physical collateral in SAP Credit Risk Management, it is important to ensure that all relevant information is included. This includes the type of collateral, its value, and any restrictions or conditions associated with it. This will help ensure that the collateral is properly monitored and managed. 
  
  Related Information: 
  For more information on physical collateral and how it is used in SAP Credit Risk Management, please refer to the SAP Help Portal. There you will find detailed information on how to register and manage physical collateral in the system.