What is liquidation view in SAP FS-LRM - Liquidity and Risk Management?

SAP Term: liquidation view

• Component: FS-LRM

• Component Name: Liquidity and Risk Management

• Description: A business perspective on a contract with regard to the value at liquidation. In this view, a cash flow is generated from the assumption that the underlying security is liquidated as quickly as possible.

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• Key Concepts: 
  Liquidation view is a component of SAP FS-LRM (Liquidity and Risk Management) that allows users to view and analyze the liquidity of their assets and liabilities. It provides a comprehensive overview of the liquidity situation of an organization, including the current and future liquidity positions. The liquidation view also allows users to simulate different scenarios to determine the impact of potential changes in the market or other external factors on their liquidity. 
  
  How to use it: 
  To use the liquidation view, users must first set up their liquidity data in SAP FS-LRM. This includes entering information about their assets and liabilities, as well as any external factors that may affect their liquidity. Once this is done, users can then use the liquidation view to view and analyze their liquidity situation. They can also use it to simulate different scenarios to determine the impact of potential changes in the market or other external factors on their liquidity. 
  
  Tips & Tricks: 
  When setting up the liquidation view, it is important to ensure that all relevant data is entered accurately. This will ensure that the results are accurate and reliable. Additionally, users should take advantage of the simulation capabilities of the liquidation view to test different scenarios and determine how they may affect their liquidity. 
  
  Related Information: 
  SAP FS-LRM also includes other components such as cash flow forecasting, risk management, and portfolio management. These components can be used in conjunction with the liquidation view to provide a more comprehensive overview of an organization’s liquidity situation. Additionally, SAP offers a range of training courses and resources to help users get the most out of their SAP FS-LRM implementation.