What is additional collateral in SAP FS-CMS - Collateral Management System?

SAP Term: additional collateral

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: All non real estate collaterals that are, in addtion to the real collateral, taken for securing receivables of building association. Example As per §7 building association law in Germany, the building associations are obliged to requisition additional collaterals, if the lending exceeds the first four-fifths of the lending value of the collateral object.

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• Key Concepts: 
  Additional collateral is a feature of the SAP FS-CMS Collateral Management System (CMS) that allows users to add additional collateral to an existing loan agreement. This feature enables users to increase the security of their loan agreement by adding additional collateral, such as real estate, vehicles, or other assets. 
  
  How to use it: 
  To use the additional collateral feature in SAP FS-CMS, users must first create a loan agreement. Once the loan agreement is created, users can add additional collateral to the agreement by selecting the “Additional Collateral” option from the menu. From there, users can select the type of collateral they wish to add and enter the details of the collateral. 
  
  Tips & Tricks: 
  When adding additional collateral to a loan agreement, it is important to ensure that all details are accurate and up-to-date. Additionally, it is important to ensure that all parties involved in the loan agreement are aware of any changes made to the collateral. 
  
  Related Information: 
  For more information on using the additional collateral feature in SAP FS-CMS, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed instructions on how to use this feature.