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

SAP Term: funding method

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: Method used for funds transfer pricing. The funding method comprises the funding result category and the elementary steps. The funding method is assigned to transactions by means of the valuation rule.

Smart SAP Assistant

• Key Concepts: 
  Funding Method is a component of the Accounting for Financial Products (AFP) module in SAP. It is used to define the way in which a financial product is funded. This includes the type of funding, the amount of funding, and the duration of the funding. 
  
  How to use it: 
  The Funding Method component allows users to define the type of funding for a financial product. This includes cash, debt, equity, or other types of funding. The amount of funding and duration of the funding can also be specified. Once the Funding Method has been defined, it can be used to calculate the financial product’s return on investment (ROI). 
  
  Tips & Tricks: 
  When defining a Funding Method, it is important to consider the type of financial product being funded. Different types of financial products may require different types of funding and different amounts of funding. It is also important to consider the duration of the funding and how this will affect the ROI. 
  
  Related Information: 
  The Funding Method component is part of SAP’s Accounting for Financial Products module. This module also includes components such as Risk Management, Portfolio Management, and Investment Analysis. These components can be used in conjunction with Funding Method to help manage and analyze financial products.