Common SAP CML/Banking Terms

Common SAP CML/Banking Terms

I changed the old template and envisage this new fresh template, let me know what you feel about this template.

I got lots of emails from readers who are asking to post something about common SAP CML and banking business terms, which are used while writing tons of documents. So I’m starting this series of post about common SAP CML/Banking Terms. This is the first post of that series.

Term Liability:That portion of a term loan that does not come due within the next 12 months (mortgages, equipment loans).

Term Interest Expense:The amount of interest expenses on term loans. Does not include interest paid on operating loan or line of credit.

Universality of goods or category of goods (Civil Law): In Civil Law, to hypothecate the goods to be acquire per the borrower/debtor, the hypothec must cover the universality of goods or a category of goods. The goods include into the hypothec on universality can be on movables or immovable, for a category or for all goods and the description of the hypothecated goods will be completed by the mention ‘’ present and future acquired goods’’ what is cover the future goods in the same category or those acquired in replacement.

Stated Capital:A term used in corporate legislation to designate the aggregate consideration received by a corporation on the issue of share capital.

Stock Split:The issuance of additional shares for no consideration and under conditions indicating that the objective is to increase the number of outstanding shares for the purpose of reducing their unit market value.

Tangible Assets:Something substantial or real that is capable of being appraised at an actual or approximate value.

Variable Cost:A cost that is uniform per unit, but that fluctuates in total in direct proportion to changes in the related total activity or volume.

Term Asset:Tangible or intangible asset usually involved in the production of goods and services rather than held for resale and has an economic life greater than one year. These assets are used for more than one year (land, buildings, equipment, quota).

Unissued Capital:The portion of authorized capital stock for which no shares have been issued.

Work in Progress:The cost of uncompleted goods still on the production line.

Working Capital:Current assets minus current liabilities