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

SAP Term: collateral value

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: The value of a collateral agreement which is used for collateralization of receivables.

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• Key Concepts: 
  Collateral value is a term used in the SAP FS-CMS Collateral Management System. It is the value of an asset that is used as security for a loan or other financial transaction. The collateral value is determined by the lender and is based on the current market value of the asset. 
  
  How to use it: 
  In the SAP FS-CMS Collateral Management System, collateral value is used to determine the amount of security that must be provided for a loan or other financial transaction. The collateral value is set by the lender and can be adjusted as needed. The collateral value must be sufficient to cover any potential losses that may occur due to default on the loan or other financial transaction. 
  
  Tips & Tricks: 
  When setting the collateral value, it is important to consider the current market value of the asset as well as any potential risks associated with the loan or other financial transaction. It is also important to ensure that the collateral value is sufficient to cover any potential losses that may occur due to default on the loan or other financial transaction. 
  
  Related Information: 
  The SAP FS-CMS Collateral Management System also includes features such as collateral monitoring, risk management, and reporting capabilities. These features can help lenders manage their collateral more effectively and reduce their risk exposure.