What is calculation procedure in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: calculation procedure

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: A description of the calculation steps and the order in which these are executed to generate an internal business transaction. Calculation procedures map the business posting logic using the assigned calculation steps and the resulting postings. Each calculation procedure is assigned to a procedure template, from which it derives its properties. &EXAMPLE& Component transfer procedure Accrual procedure

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• Key Concepts: 
  Calculation procedure is a feature of the Accounting for Financial Products (AFP) component of SAP’s Financial Services Business Application (FS-BA-PM). It is used to define the rules and parameters for calculating the value of financial products such as loans, mortgages, and investments. The calculation procedure can be used to determine the interest rate, repayment schedule, and other factors related to the financial product. 
  
  How to use it: 
  The calculation procedure is set up in the SAP system by defining the parameters for each financial product. This includes setting up the interest rate, repayment schedule, and other factors related to the product. Once these parameters are set up, they can be used to calculate the value of the financial product. 
  
  Tips & Tricks: 
  When setting up a calculation procedure in SAP, it is important to ensure that all of the parameters are correctly entered. This will ensure that the calculations are accurate and that the financial product is properly valued. 
  
  Related Information: 
  The calculation procedure is part of SAP’s Financial Services Business Application (FS-BA-PM). It is also related to other components such as Accounts Receivable (AR), Accounts Payable (AP), and General Ledger (GL).