What is commodity curve in SAP FIN-FSCM-TRM - Treasury and Risk Management?

SAP Term: commodity curve

• Component: FIN-FSCM-TRM

• Component Name: Treasury and Risk Management

• Description: A commodity curve shows the price of a commodity at future points in time on the basis of the forward rates of the commodity or of the quotations of the commodity futures. The curve is interpolated and extrapolated on the basis of the forward rates or quotations of the futures = reference points. The curve is used, for example, to calculate the net present values of financial instruments relating to commodities. A commodity curve is uniquely identified by the commodity ID and the commodity curve type.

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• Key Concepts: 
  Commodity curves are used in SAP Treasury and Risk Management (FIN-FSCM-TRM) to represent the price of a commodity over time. They are used to calculate the value of a commodity at any given point in time, and can be used to forecast future prices. 
  
  How to use it: 
  In SAP Treasury and Risk Management, commodity curves are used to calculate the value of a commodity at any given point in time. This is done by plotting the price of the commodity over time, and then extrapolating the data to determine the value at any given point. 
  
  Tips & Tricks: 
  When creating a commodity curve in SAP Treasury and Risk Management, it is important to ensure that the data is accurate and up-to-date. This will ensure that the calculations are accurate and reliable. 
  
  Related Information: 
  SAP Treasury and Risk Management also offers other tools for forecasting prices, such as volatility curves and yield curves. These can be used in conjunction with commodity curves to provide more accurate forecasts.