What is declaration of purpose in SAP FS-CMS - Collateral Management System?

SAP Term: declaration of purpose

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: The part of a collateral agreement that specifies the collateral scope. The declaration of purpose is given as a specific or a global declaration of purpose.

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• Key Concepts: 
  Declaration of purpose is a feature in the FS-CMS Collateral Management System (CMS) that allows users to define the purpose of a collateral agreement. This purpose can be used to determine the type of collateral agreement and the associated risk management measures. 
  
  How to use it: 
  In order to use the declaration of purpose feature, users must first define the purpose of the collateral agreement. This can be done by selecting from a list of predefined purposes or by creating a custom purpose. Once the purpose has been defined, it can be used to determine the type of collateral agreement and the associated risk management measures. 
  
  Tips & Tricks: 
  When defining the purpose of a collateral agreement, it is important to consider all potential risks associated with the agreement. This will help ensure that the appropriate risk management measures are taken. Additionally, it is important to ensure that all parties involved in the agreement are aware of and agree to the declared purpose. 
  
  Related Information: 
  For more information on declaration of purpose in FS-CMS Collateral Management System, please refer to SAP’s official documentation on the topic. Additionally, there are several online resources available that provide additional information and tips on using this feature.