What is custom funding method in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: custom funding method

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: Funding method that can be defined in addition to the funding methods provided by SAP.

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• Key Concepts: 
  Custom funding method is a feature of the Accounting for Financial Products (AFP) component of the SAP Financial Services – Banking and Payments (FS-BA-PM) module. It allows users to define their own funding methods for financial products, such as loans, mortgages, and other investments. This feature enables users to customize their funding methods to meet their specific needs. 
  
  How to use it: 
  To use the custom funding method feature, users must first define the parameters of the funding method they wish to use. This includes defining the interest rate, repayment terms, and other details. Once these parameters have been defined, users can then apply the custom funding method to their financial products. 
  
  Tips & Tricks: 
  When defining a custom funding method, it is important to consider the impact that changes in interest rates or repayment terms may have on the financial product. Additionally, users should ensure that their custom funding method is compliant with any applicable regulations or laws. 
  
  Related Information: 
  For more information on the Accounting for Financial Products (AFP) component of the SAP Financial Services – Banking and Payments (FS-BA-PM) module, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed information on how to use this feature.