What is 'clean price' in SAP FS-BA-PM-AFP - Accounting for Financial Products?

clean price - Overview

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: Price of a financial instrument after accrued interest and interest to be accrued have been deducted.

clean price - Details

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  Key Concepts: 
  Clean price is a term used in the Accounting for Financial Products (AFP) component of SAP's Financial Services (FS) Business Application (BA). It is the price of a financial instrument without any accrued interest. Clean prices are used to calculate the value of a financial instrument at any given time. 
  
  How to use it: 
  In SAP, clean prices are used to calculate the value of a financial instrument at any given time. This is done by subtracting the accrued interest from the current market price of the instrument. The resulting value is the clean price. 
  
  Tips & Tricks: 
  When calculating the clean price of a financial instrument, it is important to ensure that all accrued interest is taken into account. This will ensure that the clean price accurately reflects the current market value of the instrument. 
  
  Related Information: 
  The clean price of a financial instrument can be used to calculate other values such as yield, duration, and convexity. It can also be used to compare different instruments and determine which one offers the best return.