What is 'external limit' in SAP FS-CMS - Collateral Management System?

external limit - Overview

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: An amount specified as the upper limit to be used for a credit or settlement risk that has been contractually agreed upon with the customer.

external limit - Details

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  Key Concepts: 
  External limit is a feature of the FS-CMS Collateral Management System (CMS) that allows users to set limits on the amount of collateral that can be used for a particular transaction. This limit is set by the user and is not affected by any internal or external factors. The external limit helps to ensure that the collateral used for a transaction does not exceed the user's desired amount.
  
  How to use it: 
  To use the external limit feature, users must first set up an external limit in the CMS. This can be done by selecting the “External Limit” option from the CMS menu. Once this is done, users can then enter the desired amount of collateral that they want to use for a particular transaction. The external limit will then be applied to all transactions involving that particular collateral.
  
  Tips & Tricks: 
  When setting up an external limit, it is important to remember that this limit will apply to all transactions involving that particular collateral. Therefore, it is important to ensure that the external limit is set at an appropriate level so as not to restrict transactions unnecessarily. Additionally, it is important to keep in mind that any changes made to the external limit will take effect immediately and will apply to all future transactions involving that particular collateral. 
  
  Related Information: 
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