What is product category in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: product category

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: A grouping of financial position classes that is predefined by SAP. The following product categories are fixed categories delivered by SAP: G/L account Object Instrument Portfolio hedge General financial position

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• Key Concepts: 
  Product category is a component of the SAP Financial Services (FS) Business Application Platform (BA) Portfolio and Project Management (PM) Accounting for Financial Products (AFP). It is used to classify and group financial products into categories, such as loans, deposits, and investments. This helps to organize and manage the financial products in a more efficient manner. 
  
  How to use it: 
  Product category can be used to create a hierarchical structure of financial products. This structure can be used to assign different characteristics to each product category, such as interest rates, maturity dates, and other parameters. This allows for more efficient management of the financial products. 
  
  Tips & Tricks: 
  When creating product categories, it is important to consider the different characteristics of each product type. This will help ensure that the product categories are properly organized and that the correct parameters are assigned to each product type. 
  
  Related Information: 
  For more information on product categories in SAP FS-BA-PM-AFP Accounting for Financial Products, please refer to the SAP Help Portal.