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

SAP Term: collateral distribution

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: The distribution of the collateral value own collateral share among the collateralized secured receivables, in line with the purpose declaration.

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• Key Concepts: 
  Collateral distribution is a process used in the FS-CMS Collateral Management System (CMS) to manage and distribute collateral assets. It enables organizations to efficiently manage their collateral assets, such as securities, cash, and other financial instruments, by tracking and monitoring their movements. The system also provides a secure platform for the exchange of collateral assets between counterparties. 
  
  How to use it: 
  The FS-CMS Collateral Management System provides a comprehensive set of tools for managing and distributing collateral assets. It allows users to track and monitor the movements of their collateral assets, as well as securely exchange them with counterparties. The system also provides a range of features for managing risk, such as margin calls and stress testing. 
  
  Tips & Tricks: 
  When using the FS-CMS Collateral Management System, it is important to ensure that all transactions are properly documented and tracked. This will help to ensure that all parties involved in the transaction are aware of their obligations and that any disputes can be quickly resolved. Additionally, it is important to regularly review the system’s settings to ensure that they are up-to-date and that any changes are properly documented. 
  
  Related Information: 
  The FS-CMS Collateral Management System is part of SAP’s Financial Services suite of products. It is designed to help organizations manage their collateral assets more efficiently and securely. For more information about the system, please visit SAP’s website at https://www.sap.com/products/financial-services/collateral-management-system.html