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

SAP Term: collateral

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: An instrument for the collateralization of financial contracts. In CMS, collateral is represented as collateral objects and managed in collateral agreements.

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• Key Concepts: 
  Collateral is a form of security that is used to secure a loan or other financial transaction. In the context of SAP's FS-CMS Collateral Management System, collateral is used to manage the risk associated with lending and other financial transactions. The system allows users to monitor and manage the collateral associated with their loans and transactions, as well as to track the performance of the collateral over time. 
  
  How to use it: 
  The FS-CMS Collateral Management System allows users to manage their collateral in a variety of ways. Users can set up collateral accounts, assign collateral to specific loans or transactions, and monitor the performance of the collateral over time. The system also provides users with tools for managing their collateral, such as setting up alerts for when collateral values change or when certain thresholds are reached. 
  
  Tips & Tricks: 
  When setting up a collateral account, it is important to ensure that all relevant information is included. This includes the type of collateral being used, the value of the collateral, and any restrictions or conditions associated with it. Additionally, it is important to regularly monitor the performance of the collateral over time in order to ensure that it is performing as expected. 
  
  Related Information: 
  For more information on SAP's FS-CMS Collateral Management System, please visit https://www.sap.com/products/collateral-management-system.html. Additionally, there are a number of resources available online that provide more detailed information on how to use and manage collateral in SAP systems.