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

SAP Term: global declaration of purpose

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: An agreement between creditor, borrower and collateral givers to the effect that the collateral objects named in the collateral agreement are to be used to collateralize all existing and future claims of the creditor against the borrower.

Smart SAP Assistant

• Key Concepts: 
  Global Declaration of Purpose is a feature of the FS-CMS Collateral Management System (CMS) that allows users to define a global purpose for their collateral. This purpose is then used to determine the appropriate collateral management activities and processes that should be applied to the collateral. 
  
  How to use it: 
  To use the Global Declaration of Purpose feature, users must first define the purpose of their collateral. 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 applied to all collateral managed by the CMS. 
  
  Tips & Tricks: 
  When defining a custom purpose, it is important to ensure that it is specific enough to accurately reflect the intended use of the collateral. Additionally, it is important to ensure that all relevant stakeholders are aware of and agree with the purpose before it is applied. 
  
  Related Information: 
  The Global Declaration of Purpose feature is closely related to other features of the CMS such as Collateral Valuation and Risk Management. These features rely on the Global Declaration of Purpose in order to accurately assess and manage the risk associated with each piece of collateral.