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

SAP Term: redesignation

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: Reestablishment of an continuous portfolio fair value hedging relationship at the start of a period as a result of the definition of new amounts to be hedged and hedging instruments with the same hedged item selection criteria for a new hedging period. Redesignation involves reselecting the hedged items, arranging them in maturity bands, making the adjustments required as a result of the dedesignation and designation of hedging instruments, and determining the effectiveness.

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• Key Concepts: 
  Redesignation is a process in the SAP FS-BA-PM-AFP Accounting for Financial Products component that allows users to change the designation of a financial product from one type to another. This process is used when a financial product needs to be reclassified or when a customer wants to change the designation of a product. 
  
  How to use it: 
  In order to use the redesignation process, users must first select the financial product they wish to redesignate. Once the product has been selected, users can then enter the new designation for the product. The system will then check if the new designation is valid and if it is, it will update the product accordingly. 
  
  Tips & Tricks: 
  When using the redesignation process, it is important to ensure that all of the necessary information is entered correctly. This includes entering the correct new designation for the product as well as any other relevant information such as dates and amounts. Additionally, users should always double-check their entries before submitting them to ensure accuracy. 
  
  Related Information: 
  The redesignation process is part of the SAP FS-BA-PM-AFP Accounting for Financial Products component. This component also includes other processes such as creating and managing financial products, setting up payment plans, and managing customer accounts. Additionally, this component can be used in conjunction with other SAP components such as SAP FI/CO and SAP SD/MM.