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

SAP Term: product type

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: For a financial position class, a descriptive characteristic that is predefined by SAP. The system uses the product type to derive calculation methods. Examples of product types include the following: Stock Bond

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• Key Concepts: 
  Product type is a classification of a product in SAP. It is used to group products into categories for easier management and reporting. In the Financial Services (FS) module, the product type “Accounting for Financial Products” (AFP) is used to track and manage financial products such as loans, mortgages, and investments. 
  
  How to use it: 
  In order to use the product type “Accounting for Financial Products” (AFP), you must first create a product type in the FS-BA-PM-AFP module. Once the product type has been created, you can then assign it to any financial product that you wish to track and manage. 
  
  Tips & Tricks: 
  When creating a product type in the FS-BA-PM-AFP module, it is important to ensure that all of the necessary fields are filled out correctly. This will ensure that all of the data associated with the product type is accurate and up-to-date. 
  
  Related Information: 
  For more information on product types in SAP, please refer to the SAP Help Portal or contact your local SAP support team.