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

SAP Term: internal collateral agreement

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: The collateral agreements maintained in the own bank that is using SAP Collateral Management.

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• Key Concepts: 
  An internal collateral agreement is a contract between two parties within the same organization. It is used to manage the risks associated with lending and borrowing of funds within the organization. The FS-CMS Collateral Management System (CMS) is a component of SAP that helps organizations manage their internal collateral agreements. 
  
  How to use it: 
  The FS-CMS Collateral Management System allows organizations to create, manage, and monitor their internal collateral agreements. It provides a comprehensive view of all collateral agreements and allows users to track the status of each agreement. The system also provides tools for managing risk, such as setting limits on the amount of collateral that can be lent or borrowed. 
  
  Tips & Tricks: 
  When setting up an internal collateral agreement, it is important to consider the risks associated with lending and borrowing funds. Organizations should set limits on the amount of collateral that can be lent or borrowed, as well as establish rules for when collateral must be returned. Additionally, organizations should ensure that all parties involved in the agreement are aware of their responsibilities and obligations. 
  
  Related Information: 
  The FS-CMS Collateral Management System is part of SAP’s Financial Services suite of products. Other components of this suite include SAP Bank Analyzer, SAP Credit Management, and SAP Cash Management. These products provide organizations with a comprehensive view of their financial operations and help them manage risk more effectively.