Entering content frame

Background documentationIntermediary Calculations for Collateral Value Locate the document in its SAP Library structure

The following intermediary values are derived in the calculation of collateral value:

Charge Value

Scenario

Charge Value is Equal To

Percentage of charge is equal to 100

OR

Charge amount is equal to 0

Assessment value

Percentage of charge is not equal to 100

OR

Charge amount is not equal to zero

Minimum [(highest lending limit) (charge percentage or amount) (assessment amount)]

 

Assigned Lending Limit

Assigned lending limit is the value of the asset that is provided for collateral purposes while lending limit is the asset value that can be provided as per legal and statutory requirements.

Assigned lending limit = [(highest lending limit – prior charge) * charge value] / (sum of charge values for same ranked charges

 

Back-up collateral agreements

Utilizable value

The actual value of the collateral agreement that can be used for collateralization purposes after distribution to the receivables with higher priority.

Utilizable value = collateral value of the backup collateral agreement – collateral value distributed to receivables with higher priority

 

Backed-up Collateral Agreement

Required value

Required value is the amount required by the backed-up collateral agreement.

Required value = assessment value of the backed up collateral agreement – minimum [(lending limit of the collateral agreement – prior charges – special discount) of the backed-up collateral agreement AND (assessment value of the backed-up collateral agreement)]

 

Allocated value

Allocated value is the total amount available from back-up collateral agreements for a backed-up collateral agreement.

Allocated value = sum of the allotted available values from the back up collateral agreements

 

Pool Agreement

Assigned collateral value

Assigned collateral value is calculated for the maximum risk using the respective maximum risk and the current risk values of the collateral value and collateral right for the pool agreement.

Collateral value*(collateral right of the pool agreement / sum of the collateral values of the individual agreements in the pool)

 

Leaving content frame