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

SAP Term: calculation rule

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: Customizing concept that defines how standard costs and how funds transfer prices are calculated. Calculation rules are derived from the characteristics of the transactions that are to be processed, or from the parts that were created when the transactions were split. Calculation rules group together those transactions that are to be processed in the same way.

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• Key Concepts: 
  Calculation rule 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 calculation logic for financial products such as loans, mortgages, and other financial instruments. The calculation rule defines how the interest rate, repayment amount, and other parameters are calculated for each product. 
  
  How to use it: 
  To use the calculation rule feature, first create a calculation rule in the SAP system. This can be done by entering the parameters for the product such as interest rate, repayment amount, and other details. Once the calculation rule is created, it can be used to calculate the parameters for any financial product. 
  
  Tips & Tricks: 
  When creating a calculation rule, it is important to ensure that all parameters are entered correctly. This will ensure that the calculations are accurate and that the results are consistent. Additionally, it is important to test the calculation rule before using it in production. 
  
  Related Information: 
  For more information on using the calculation rule feature in SAP’s Financial Services Business Application (FS-BA-PM), please refer to SAP’s documentation on Accounting for Financial Products (AFP).