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

SAP Term: global limit

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: Collateral agreements that exist without being linked to a receivable. Links to receivable are generated automatically.

Smart SAP Assistant

• Key Concepts: 
  Global limit is a feature of the FS-CMS Collateral Management System (CMS) that allows users to set a limit on the total amount of collateral that can be used for a particular transaction. This limit is applied across all collateral types and is intended to provide an additional layer of risk management. 
  
  How to use it: 
  To use the global limit feature, users must first define the limit in the CMS settings. This can be done by setting a maximum amount of collateral that can be used for any given transaction. Once the limit is set, it will be applied to all transactions that involve collateral. 
  
  Tips & Tricks: 
  When setting a global limit, it is important to consider the risk associated with each transaction. The global limit should be set at a level that is appropriate for the risk associated with the transaction. Additionally, it is important to monitor the global limit regularly to ensure that it remains appropriate for the current risk profile. 
  
  Related Information: 
  The global limit feature is part of the FS-CMS Collateral Management System, which provides users with a comprehensive suite of tools for managing collateral. Additionally, there are other features within CMS that can help users manage their collateral more effectively, such as margin calls and collateral optimization.