What is initial measurement in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: initial measurement

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: Initial measurement of a financial asset or a financial liability. In accordance with the IAS, acquisition costs and fair value are to be used for this.

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• Key Concepts: 
  Initial measurement is a process in the SAP FS-BA-PM-AFP Accounting for Financial Products component that allows users to record the initial value of a financial product. This initial value is used to calculate the subsequent changes in the value of the product over time. 
  
  How to use it: 
  To use initial measurement, users must first enter the initial value of the financial product into the system. This can be done manually or by importing data from an external source. Once the initial value has been entered, users can then use this value to calculate any subsequent changes in the value of the product. 
  
  Tips & Tricks: 
  When entering the initial value of a financial product, it is important to ensure that all relevant information is included. This includes any fees or taxes associated with the product, as well as any other costs that may affect its value over time. Additionally, it is important to ensure that all data is accurate and up-to-date in order to ensure accurate calculations. 
  
  Related Information: 
  Initial measurement is just one part of the SAP FS-BA-PM-AFP Accounting for Financial Products component. Other features include portfolio management, risk management, and reporting capabilities. Additionally, users can also access additional resources such as tutorials and user guides to help them better understand how to use this component.