What is 'principal' in SAP FS-CML - Loans Management?

principal - Overview

• Component: FS-CML

• Component Name: Loans Management

• Description: The capital portion of a loan amount on which interest is calculated.

principal - Details

• 
  Key Concepts: 
  The term “principal” in the context of SAP FS-CML Loans Management refers to the amount of money borrowed or lent in a loan agreement. It is the amount of money that is initially agreed upon between the lender and borrower, and is the basis for all other calculations related to the loan. 
  
  How to use it: 
  In SAP FS-CML Loans Management, the principal is entered into the system when a loan agreement is created. This amount will be used to calculate interest payments, repayment schedules, and other related calculations. The principal can also be adjusted over time if needed. 
  
  Tips & Tricks: 
  When entering a loan agreement into SAP FS-CML Loans Management, it is important to make sure that the principal amount is accurate. This will ensure that all calculations related to the loan are correct. 
  
  Related Information: 
  The principal amount of a loan can also be referred to as the “face value” or “nominal value” of the loan. It is important to note that this amount does not include any interest payments or other fees associated with the loan.