Collateral Management
(FS-CMS) 
Purpose
SAP Collateral Management is a comprehensive solution for maintaining, administration and monitoring the usage of collaterals and also for adherence to reporting standards such as the Basel II framework. The solution is designed around the three principal collateral entities, namely the collateral objects, collateral agreements and receivables.
Overview of Collateral Management Architecture
Collateral Objects
The collateral objects representing collateral that can be used for collateralizing receivables. They can be maintained in the collateral object systems provided by Collateral Management or in any other external object systems. You must define the integration framework necessary for connecting to external object systems. For detailed information, see
Collateral Agreements
The collateral agreements represent the terms and conditions for the usage of collateral for the collateralization of receivables. Collateral Management supports the business requirements for various business scenarios of collateral agreements such as real estate lien, guarantees, transfers and pledges. For detailed information, see
Receivables
The receivables represent the loans and liabilities that can be collateralized using collateral agreements. Receivables can be maintained in Collateral Management or accessed from external credit systems. The standard system provides integration with SAP Loans Management (CML). For detailed information, see
Integration
Collateral Management allows you to connect to various SAP and non-SAP systems for maintaining and retrieving data for collateral entities and for analysis and reporting relevant to the collateral entities. For more information, see
Interfaces to External Systems
The following are integration scenarios provided by the standard system:
Object Systems
Collateral Management allows you to define integration with external object systems for maintaining collateral-specific details.
Credit Systems
Collateral Management references receivable details from external credit systems to determine the extent of collateralization possible for receivables.
For collateralization purposes, the system considers only the receivables that are assigned to collateral agreements. Collateral Management provides a comprehensive framework to use receivables of external credit systems. A default framework is provided with SAP Loans Management (CML).
Business Partner System
You can assign business partners (BP) to collateral entities in different partner functions. The comprehensive master data for the business partners can be maintained in external BP systems. Collateral Management allows you to maintain basic business partner details such as partner identification, partner functions and ownership shares. For detailed information on business partners, see
Business Partner in Collateral Management
The standard system provides a default implementation with SAP Financial Services Business Partner (FSBP)
Document system
You can assign various documents (belonging to different document types) to collateral entities. The comprehensive master data for documents can be maintained in external document systems. Collateral Managementallows you to maintain basic document details such as the reference identification and the document type.
A default implementation is provided with SAP Document Management System.
Data Extraction Interface
Collateral agreement and collateral object specific details can be uploaded to the SAP Source Data Layer (SDL) for analysis and reporting specific to Basel II (risk management system). Data can also be uploaded to the SAP Netweaver Business Intelligence for operational specific and analytical reports for monitoring the usage of collaterals.
Features
Collateral Management covers a comprehensive list of functions required for collateral administration, maintenance and monitoring. Some of these features include:
● Centralized Master Data Maintenance
You can maintain detailed descriptions for collateral entities that can be used for executing collateral processes in Collateral Management. The master data is also available for reporting in external reporting systems.
● Collateral Terms
The collateral terms represent the terms and conditions for collateralizing receivables using collateral agreements. The declaration of purpose is a special feature that can be used to determine the scope of collateralization.
● Collateral Calculations
You can determine a range of coverage values for receivables assigned to collateral agreements. The standard system considers the business requirements of collateral entities for performing a range of intermediary calculations for each of them.
● Collateral Processes
You can execute processes relevant for collaterals such as liquidation of collateral objects or determining the value of charges on collateral objects. It is also possible to extract collateral data for use in analysis and reporting in external systems. The standard system provides the framework for extraction and uploading of collateral data to SAP Netweaver Business Intelligence and SAP Bank Analyzer (for use in Basel II-specific reporting).
● Configuration Framework for Collateral Processes
The process control framework allows you to define controls and use these controls to define processes. You define processes using business activities. Basic controls include managing statuses, configuring user interface specific to the business of collateral entities and additional business checks for processes. Other controls include the authorization and change management features.
● Collateral Monitoring
The collateral monitoring reports such as the collateral overview, collateral sheet and the report for batch collateral coverage monitoring (BCM) have been provided for administration and monitoring of collaterals. You can also display an overview of the status of collaterals for a specific business partner using the Overview of Business Partner Collaterals.
● Correspondence for Business Partners
You can send outbound correspondences to the business partners using the correspondence function.
● Navigation Workbench
Easy navigation in the Collateral Management workbench between collateral entities. You can maintain all the collateral entities using the workbench. You can also run the business partner collateral overview report from the workbench. Further you can search for collateral entities, create new entities and copy entities using the workbench. Organizational settings must be defined in the workbench for a user.