What is capitalized value in SAP FS-CMS - Collateral Management System?

SAP Term: capitalized value

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: The present value of the object, derived by capitalizing the annual net income. Formula: capitalized value = income x 100 : standard interest rate for the country formula is specific to Germany.

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• Key Concepts: 
  Capitalized value is a term used in the FS-CMS Collateral Management System (CMS) of SAP. It is the total value of a collateral item, which is calculated by multiplying the collateral item's quantity by its unit value. This value is then used to determine the amount of collateral that must be provided to secure a loan or other financial transaction. 
  
  How to use it: 
  In order to calculate the capitalized value of a collateral item, you must first determine the quantity and unit value of the item. The quantity is the number of units of the item, while the unit value is the monetary value of each individual unit. Once these two values are determined, you can calculate the capitalized value by multiplying them together. 
  
  Tips & Tricks: 
  When calculating capitalized values, it is important to remember that the unit value should be expressed in terms of currency. This will ensure that your calculations are accurate and that you are not over- or under-valuing your collateral items. 
  
  Related Information: 
  The capitalized value of a collateral item is an important factor in determining how much collateral must be provided for a loan or other financial transaction. It is also used to calculate the amount of interest that must be paid on a loan or other financial transaction. Additionally, capitalized values can be used to compare different types of collateral items and determine which one provides more security for a loan or other financial transaction.