What is loss allocation in SAP FS-TXS - Funding Management?

SAP Term: loss allocation

• Component: FS-TXS

• Component Name: Funding Management

• Description: Removal of a funded asset from a funding transaction without payment being made to the investor.

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• Key Concepts: 
  Loss allocation is a process in the SAP FS-TXS Funding Management component that allows for the distribution of losses among different funding sources. It is used to ensure that losses are allocated in a fair and equitable manner. Losses can be allocated to different funding sources based on their respective contributions to the total loss amount. 
  
  How to use it: 
  In order to use loss allocation, users must first define the different funding sources and their respective contributions to the total loss amount. This can be done by entering the contribution amounts for each funding source in the system. Once this is done, users can then use the loss allocation process to distribute the losses among the different funding sources. 
  
  Tips & Tricks: 
  When using loss allocation, it is important to ensure that all of the contributions from each funding source are accurately entered into the system. This will ensure that losses are allocated in a fair and equitable manner. Additionally, it is important to keep track of any changes that are made to the contributions from each funding source, as this could affect how losses are allocated. 
  
  Related Information: 
  For more information on loss allocation in SAP FS-TXS Funding Management, please refer to SAP's official documentation on the topic. Additionally, there are many online resources available that provide detailed information on how to use loss allocation in SAP FS-TXS Funding Management.