What is 'liquidation' in SAP FS-CMS - Collateral Management System?

liquidation - Overview

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: The conversion of the assets or inventory into cash or accounts receivable, to meet the current obligations and service the long-term debt of a debtor. Liquidation also implies the termination of a loan engagement. It involves selling the assets of the debtor and distributing the proceeds to meet the current liabilities and claims of creditor.

liquidation - Details

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  Key Concepts: 
  Liquidation is a process in the FS-CMS Collateral Management System (CMS) of SAP that allows users to close out a collateral agreement. This process involves the release of the collateral and the settlement of any outstanding obligations between the parties involved. The liquidation process can be initiated manually or automatically, depending on the terms of the agreement. 
  
  How to use it: 
  In order to initiate a liquidation process, users must first enter the relevant details into the CMS. This includes information such as the collateral agreement, the parties involved, and any other relevant details. Once this information is entered, users can then initiate the liquidation process. Depending on the terms of the agreement, this process may be initiated manually or automatically. 
  
  Tips & Tricks: 
  When initiating a liquidation process, it is important to ensure that all relevant details are entered correctly into the CMS. This will help to ensure that the process runs smoothly and that all obligations are settled correctly. Additionally, it is important to ensure that all parties involved are aware of the liquidation process and agree to its terms. 
  
  Related Information: 
  For more information about liquidation in SAP's FS-CMS Collateral Management System, please refer to SAP's official documentation. Additionally, there are many online resources available that provide further information about this topic.