What is nominal value in SAP FS-CMS - Collateral Management System?

SAP Term: nominal value

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: A pre-defined amount that has been set down in a document, a contract or an agreement. Securities are an exception, as their nominal value is not relevant from a collateral-specific point of view. &EXAMPLE& Life insurance: Amount insured Home loan and savings contract: Home loan and savings contract principal Encumbrance: Amount entered in the land register

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• Key Concepts: 
  Nominal value is a term used in the FS-CMS Collateral Management System (CMS) to refer to the amount of money that is used to calculate the value of a collateral item. It is the amount of money that is used to determine the value of a collateral item, such as a loan or security. 
  
  How to use it: 
  In the FS-CMS CMS, nominal value is used to calculate the value of a collateral item. The nominal value is determined by taking into account the current market value of the collateral item, as well as any additional fees or costs associated with it. The nominal value is then used to calculate the total value of the collateral item. 
  
  Tips & Tricks: 
  When calculating the nominal value of a collateral item, it is important to take into account any additional fees or costs associated with it. This will ensure that the total value of the collateral item is accurately calculated. 
  
  Related Information: 
  The nominal value of a collateral item can also be used to calculate other values, such as the net present value (NPV) and internal rate of return (IRR). These values can be used to determine whether or not a particular investment is worth making.