What is derivative category in SAP FIN-FSCM-CMM-BR - ?

SAP Term: derivative category

• Component: FIN-FSCM-CMM-BR

• Component Name:

• Description: SAP Broker Reconciliation for Commodity Derivatives Indicates the type of derivatives contracts, for example, commodity futures, or options.

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• Key Concepts: 
  Derivative category is a term used in SAP Financial Supply Chain Management (FSCM) Credit Management (CMM) Business Rules (BR). It is a classification of derivatives that are used to define the risk associated with a customer. Derivatives are financial instruments that derive their value from an underlying asset, such as stocks, bonds, commodities, or currencies. 
  
  How to use it: 
  In SAP FSCM CMM BR, derivative categories are used to define the risk associated with a customer. The categories are based on the type of derivative and the underlying asset. For example, a customer may be classified as high risk if they have derivatives based on stocks or commodities, or low risk if they have derivatives based on bonds or currencies. 
  
  Tips & Tricks: 
  When defining derivative categories in SAP FSCM CMM BR, it is important to consider the underlying asset and the type of derivative. This will help ensure that customers are classified accurately and that their risk is accurately assessed. 
  
  Related Information: 
  For more information about derivatives and how they are used in SAP FSCM CMM BR, please refer to the SAP Help documentation.