What is 'salvage' in SAP FS-CM - Claims Management?

salvage - Overview

• Component: FS-CM

• Component Name: Claims Management

• Description: The amount recovered from the sale of damaged property.

salvage - Details

• 
  Key Concepts: 
  Salvage is a term used in the FS-CM Claims Management component of SAP. It refers to the process of recovering the value of a damaged or lost item by selling it for parts or scrap. Salvage is typically used when an item cannot be repaired or replaced, and the cost of repair or replacement exceeds the value of the item. 
  
  How to use it: 
  In FS-CM Claims Management, salvage is used to determine the amount of money that can be recovered from a damaged or lost item. The salvage value is calculated by subtracting the cost of repair or replacement from the original value of the item. This amount can then be used to offset the cost of repair or replacement. 
  
  Tips & Tricks: 
  When calculating salvage value, it is important to consider all costs associated with repair or replacement, including labor and materials. Additionally, it is important to consider any applicable taxes or fees that may apply when selling an item for salvage. 
  
  Related Information: 
  In addition to salvage, FS-CM Claims Management also includes other features such as claim processing, dispute resolution, and payment processing. These features are designed to help organizations manage their claims more efficiently and effectively.