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

SAP Term: substitute collateral

• Component: FS-CMS

• Component Name: Collateral Management System

• Description: A collateral that is used as a substitute for the final bank-specific collateral that has been agreed upon.

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• Key Concepts: 
  Substitute collateral is a feature of the SAP FS-CMS Collateral Management System (CMS) that allows users to replace existing collateral with new collateral. This feature is used to ensure that the collateral held by the lender is sufficient to cover the loan amount. The substitute collateral feature allows users to quickly and easily switch out existing collateral for new collateral, without having to manually adjust the loan amount or other related details. 
  
  How to use it: 
  To use the substitute collateral feature, users must first select the existing collateral that they wish to replace. This can be done by selecting the collateral from a list of available collaterals or by entering the details of the existing collateral. Once the existing collateral has been selected, users can then select the new collateral that they wish to use as a substitute. The system will then automatically adjust the loan amount and other related details accordingly. 
  
  Tips & Tricks: 
  When selecting substitute collateral, it is important to ensure that the new collateral is of sufficient value to cover the loan amount. Additionally, it is important to ensure that all relevant legal requirements are met when selecting substitute collateral. 
  
  Related Information: 
  For more information on using the substitute collateral feature in SAP FS-CMS Collateral Management System, please refer to SAP Help documentation or contact your local SAP support team.