What is 'collateral balance' in SAP FS-LMS - Liquidity Management Suite?

collateral balance - Overview

• Component: FS-LMS

• Component Name: Liquidity Management Suite

• Description: The market value of the relevant collateral.

collateral balance - Details

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  Key Concepts: 
  Collateral balance is a term used in the SAP FS-LMS Liquidity Management Suite. It is a measure of the amount of collateral that a company has available to cover its financial obligations. The collateral balance is calculated by subtracting the total amount of collateral that has been pledged from the total amount of collateral that is available. 
  
  How to use it: 
  The collateral balance can be used to determine the amount of liquidity that a company has available to cover its financial obligations. It can also be used to assess the risk associated with a particular transaction or investment. The collateral balance can be monitored on an ongoing basis to ensure that the company has sufficient liquidity to meet its obligations. 
  
  Tips & Tricks: 
  It is important to monitor the collateral balance on an ongoing basis in order to ensure that the company has sufficient liquidity to meet its obligations. Additionally, it is important to ensure that the collateral balance is not too low, as this could lead to a liquidity crisis. 
  
  Related Information: 
  The collateral balance is closely related to other measures of liquidity such as cash flow and working capital. Additionally, it is important to consider other factors such as credit risk when assessing the liquidity of a company.