1. SAP Glossary
  2. Collateral Management System
  3. specific declaration of purpose



What is specific declaration of purpose in SAP (FS-CMS - Collateral Management System)?



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SAP Term: specific declaration of purpose

  • Component: FS-CMS

  • Component Name: Collateral Management System

  • Description: An agreement between creditor, borrower and collateral givers to the effect that the collateral objects named in the collateral agreement are to be used to collateralize only those claims of the creditor against the borrower specifically mentioned.


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  • Key Concepts: 
    Specific declaration of purpose is a feature of the FS-CMS Collateral Management System (CMS) that allows users to define the purpose of a collateral agreement. This feature enables users to specify the purpose of the agreement, such as for a loan, security, or other purpose. The purpose is then used to determine the applicable legal requirements and regulations. 
    
    How to use it: 
    To use the specific declaration of purpose feature, users must first define the purpose of the collateral agreement. This can be done by selecting from a list of predefined purposes or by entering a custom purpose. Once the purpose is defined, it will be used to determine the applicable legal requirements and regulations. 
    
    Tips & Tricks: 
    When defining the purpose of a collateral agreement, it is important to be as specific as possible. This will ensure that all applicable legal requirements and regulations are taken into account. Additionally, it is important to review and update the purpose regularly to ensure that it remains accurate and up-to-date. 
    
    Related Information: 
    For more information about specific declaration of purpose in FS-CMS Collateral Management System, please refer to SAP’s official documentation at https://help.sap.com/viewer/product/FS-CMS/latest/en-US/f9f8d7a2b3e14c8a9f3d7c6b2f5e4d1a.html
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