What is movement rule in SAP CA-FS-PO - Price Optimization for Banking?

SAP Term: movement rule

• Component: CA-FS-PO

• Component Name: Price Optimization for Banking

• Description: A rule that describes the maximum difference a user will allow between the current and optimal value for the optimization variables. For example, the optimal rate may only move 25 basis points from the currentrate.

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• Key Concepts: 
  A movement rule in SAP CA-FS-PO Price Optimization for Banking is a set of conditions that define when a price should be changed. It is used to automate the process of changing prices based on certain criteria, such as market conditions or customer demand. The movement rule can be used to set a minimum or maximum price, or to adjust prices based on a percentage change. 
  
  How to use it: 
  To use a movement rule in SAP CA-FS-PO Price Optimization for Banking, first define the criteria that will trigger the rule. This could include market conditions, customer demand, or other factors. Then, specify the action that should be taken when the criteria are met. This could include setting a minimum or maximum price, or adjusting prices by a certain percentage. Finally, save the rule and activate it so that it can be used in the system. 
  
  Tips & Tricks: 
  When creating a movement rule in SAP CA-FS-PO Price Optimization for Banking, it is important to consider how the rule will affect pricing decisions. For example, if the rule sets a minimum price that is too low, it could lead to lost revenue. It is also important to consider how often the rule should be applied and how long it should remain active. 
  
  Related Information: 
  SAP CA-FS-PO Price Optimization for Banking also includes other features such as price optimization algorithms and pricing simulations. These features can be used in conjunction with movement rules to help ensure that pricing decisions are optimized for maximum profitability.