What is ranking class in SAP (FS-CMS - Collateral Management System)?

SAP Term: ranking class

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: The sequence in which several collateral agreements are assigned to one receivable.

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• Key Concepts: 
  Ranking class is a feature of the FS-CMS Collateral Management System (CMS) that allows users to assign a priority to each collateral item. This priority is used to determine the order in which the collateral items are processed. The ranking class is assigned to each collateral item and can be changed at any time. 
  
  How to use it: 
  To assign a ranking class to a collateral item, open the CMS and select the collateral item. Then, select the “Ranking Class” option from the menu. A list of available ranking classes will be displayed. Select the desired ranking class and click “Save” to apply it to the collateral item. 
  
  Tips & Tricks: 
  When assigning ranking classes, it is important to consider how the order of processing will affect the outcome of the transaction. For example, if a higher-priority collateral item is processed first, it may be more likely to be accepted by the counterparty. 
  
  Related Information: 
  For more information on how ranking classes are used in CMS, please refer to SAP’s documentation on Collateral Management System (CMS).