What is recognized directly in equity in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: recognized directly in equity

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: Including the total comprehensive income.

Smart SAP Assistant

• Key Concepts: 
  Recognized directly in equity is a term used in the Accounting for Financial Products (AFP) component of the SAP Financial Services Business Application (FS-BA-PM). This term refers to the process of recognizing a financial product’s value directly in the equity of the company. This means that the value of the financial product is not recorded as an asset or liability, but rather as an increase or decrease in the company’s equity. 
  
  How to use it: 
  In order to use this term, you must first understand how to use the Accounting for Financial Products component of SAP FS-BA-PM. This component allows you to manage and track financial products such as derivatives, securities, and other investments. Once you have set up your financial products, you can then use the Recognized Directly in Equity feature to record their value directly in your company’s equity. 
  
  Tips & Tricks: 
  When using this feature, it is important to remember that it only applies to certain types of financial products. For example, derivatives and securities are eligible for recognition directly in equity, but other investments such as stocks and bonds are not. Additionally, it is important to ensure that all transactions are properly recorded and accounted for in order to maintain accurate records. 
  
  Related Information: 
  For more information on how to use the Recognized Directly in Equity feature of SAP FS-BA-PM, please refer to the official SAP documentation. Additionally, there are many online resources available that provide tutorials and tips on how to use this feature effectively.