What is rescission balance in SAP FS-CML - Loans Management?

SAP Term: rescission balance

• Component: FS-CML

• Component Name: Loans Management

• Description: The difference between the total disbursed by the bank and the total of all payments made by the account holder, excepting internal clearing postings at the bank that are guaranteed for the account holder such as items of the waiver condition.

Smart SAP Assistant

• Key Concepts: 
  Rescission balance is a term used in the SAP FS-CML Loans Management component. It is the amount of money that is returned to a borrower when a loan is canceled or rescinded. This amount is calculated by subtracting any fees or other costs associated with the loan from the total amount of money that was borrowed. 
  
  How to use it: 
  In SAP FS-CML Loans Management, rescission balance is used to determine the amount of money that needs to be returned to a borrower when a loan is canceled or rescinded. This amount is calculated by subtracting any fees or other costs associated with the loan from the total amount of money that was borrowed. 
  
  Tips & Tricks: 
  When calculating the rescission balance, it is important to ensure that all fees and other costs associated with the loan are taken into account. This will ensure that the borrower receives the correct amount of money back when the loan is canceled or rescinded. 
  
  Related Information: 
  The rescission balance can also be used to determine how much money a borrower needs to pay back if they are unable to make their loan payments on time. This information can be found in the SAP FS-CML Loans Management component.