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

SAP Term: partial liquidation

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: A liquidation scenario wherein only a part of the collaterals can be liquidated. A partial liquidation can occur in the following scenarios: If the financial status of the borrower improves after a part of the collateral has been liquidated. In such scenarios, the bank discontinuesto enforce the liquidation measure. The open financial obligations of a customer require liquidation of onlyparts of the collateral.

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• Key Concepts: 
  Partial liquidation is a feature of the FS-CMS Collateral Management System (CMS) that allows users to partially liquidate a collateral position. This means that users can select a portion of the collateral to be liquidated, while the remaining portion remains in the collateral position. This feature is useful for managing risk and ensuring that the collateral position remains balanced. 
  
  How to use it: 
  To use partial liquidation, users must first select the collateral position they wish to partially liquidate. Then, they must specify the amount of collateral they wish to liquidate. Finally, they must confirm the partial liquidation and submit it for processing. 
  
  Tips & Tricks: 
  When using partial liquidation, it is important to ensure that the amount of collateral being liquidated is sufficient to cover any potential losses. Additionally, users should monitor their collateral positions regularly to ensure that they remain balanced and in compliance with any applicable regulations. 
  
  Related Information: 
  For more information about partial liquidation and other features of the FS-CMS Collateral Management System, please refer to the official SAP documentation. Additionally, users can contact their SAP support team for assistance with any questions or issues related to partial liquidation or other CMS features.