What is accounting variant in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: accounting variant

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: A client-dependent Customizing entity that groups several accounting Customizing settings. You can assign an accounting variant to several accounting systems. This simplifies the process of creating new accounting systems because all settings that are dependent on the accounting variant are copied automatically for the new accounting system. An accounting variant is assigned to an accounting object type group.

Smart SAP Assistant

• Key Concepts: 
  An accounting variant is a set of rules used to determine how a financial product should be accounted for in SAP. It is part of the FS-BA-PM-AFP Accounting for Financial Products component. The accounting variant defines the account assignment, the posting type, and the posting key that will be used when a financial product is posted in SAP. 
  
  How to use it: 
  When creating a financial product in SAP, an accounting variant must be selected. This will determine how the product will be accounted for in SAP. The accounting variant can be changed at any time, but it is important to ensure that all postings related to the product are updated accordingly. 
  
  Tips & Tricks: 
  When selecting an accounting variant, it is important to consider the type of product being created and the desired outcome of the postings. For example, if a loan is being created, it may be beneficial to select an accounting variant that will post the loan payments as income rather than expenses. 
  
  Related Information: 
  For more information on accounting variants and how they are used in SAP, please refer to the SAP Help documentation or contact your local SAP support team.