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

SAP Term: free collateral

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: The part of the collateral value that is not used in the collateralization of a receivable on a given date.

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• Key Concepts: 
  Free collateral is a type of collateral that is not subject to any legal or contractual obligations. It is typically used to secure a loan or other financial transaction. In the SAP FS-CMS Collateral Management System, free collateral can be used to secure a loan or other financial transaction without having to register it with a third-party institution.
  
  How to use it: 
  In the SAP FS-CMS Collateral Management System, free collateral can be used to secure a loan or other financial transaction. To do this, the user must first create a collateral record in the system and then assign the free collateral to the record. The user can then specify the terms of the loan or other financial transaction and submit it for approval. 
  
  Tips & Tricks: 
  When using free collateral in the SAP FS-CMS Collateral Management System, it is important to ensure that all of the terms of the loan or other financial transaction are clearly stated and agreed upon by both parties. Additionally, it is important to keep track of all changes made to the collateral record in order to ensure that all parties are aware of any changes that may affect their rights and obligations. 
  
  Related Information: 
  For more information on using free collateral in the SAP FS-CMS Collateral Management System, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed instructions on how to use this feature in SAP.