What is balance object in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: balance object

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: Defines the processing level for the balance processing processes, in particular the object to be reported. It is used only in Balance Processing. It has an accounting object AO and takes on its defining characteristics. A balance object BO has one or more balance subobjects BSO that contain the descriptive characteristics and key figures. The level of detail granularity of a BO depends on the requirements of the financial statement. Its level of granularity is frequently the same as that of the AO, but the BO is more dependent upon the accounting system thus for every accounting system there is a BO for the AO. The system generates the BO using the "Generate Balance Object" step based on accounting objects generated in the master data transfer. The balance object types BO types set in Customizing serve as a template for creating balance objects. If this is configured for AO type/BO types several BOs can be produced from one AO balance object split

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• Key Concepts: 
  Balance objects are used in the Accounting for Financial Products (AFP) component of SAP to store the balance of a financial product. This balance is calculated based on the transactions that have been posted to the product. Balance objects are used to track the current balance of a financial product, such as a loan or an investment. 
  
  How to use it: 
  Balance objects are created in the SAP system when a financial product is created. The balance object is then used to store the current balance of the product. This balance is updated whenever a transaction is posted to the product. The balance object can be used to view the current balance of a financial product at any time. 
  
  Tips & Tricks: 
  It is important to ensure that all transactions are posted correctly to the balance object in order to maintain an accurate balance. It is also important to regularly check the balance object to ensure that it is up-to-date and accurate. 
  
  Related Information: 
  For more information about balance objects and how they are used in SAP, please refer to the SAP documentation on Accounting for Financial Products (AFP).