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

SAP Term: final collateral

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: The collateralization of a loan agreed in the loan agreement and which is used as final collateral.

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• Key Concepts: 
  Final collateral is a term used in the SAP FS-CMS Collateral Management System. It refers to the collateral that is used to secure a loan or other financial transaction. This collateral is typically held by the lender until the loan is repaid or the transaction is completed. The collateral can be in the form of cash, securities, real estate, or other assets. 
  
  How to use it: 
  In the SAP FS-CMS Collateral Management System, final collateral is used to secure a loan or other financial transaction. The lender will hold the collateral until the loan is repaid or the transaction is completed. The borrower must provide sufficient collateral to cover the amount of the loan or transaction. The lender will then monitor and manage the collateral throughout the duration of the loan or transaction. 
  
  Tips & Tricks: 
  When setting up a loan or other financial transaction, it is important to ensure that sufficient collateral is provided to cover the amount of the loan or transaction. This will help ensure that the lender has sufficient security for their investment and that they are able to recover their funds if necessary. 
  
  Related Information: 
  The SAP FS-CMS Collateral Management System also includes features such as monitoring and reporting on collateral values, tracking and managing collateral movements, and managing risk associated with collateralized transactions. Additionally, it provides tools for managing and tracking legal documents related to collateralized transactions.