What is residual maturity class in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: residual maturity class

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: A unit into which the residual maturity is divided for business purposes. When loans are listed by their residual maturity, the following residual maturity classes are usually used: < 1 year 1 to 5 years 5 to 10 years > 10 years

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• Key Concepts: 
  Residual maturity class is a term used in the Accounting for Financial Products (AFP) component of SAP. It is used to classify financial products according to their remaining maturity period. This classification helps to determine the accounting treatment of the product and its associated risks. 
  
  How to use it: 
  In SAP, the residual maturity class is determined by the system based on the remaining maturity period of the financial product. The system will assign a residual maturity class to each product, which can then be used to determine the appropriate accounting treatment. 
  
  Tips & Tricks: 
  When setting up a new financial product in SAP, it is important to ensure that the residual maturity class is correctly assigned. This will ensure that the correct accounting treatment is applied and that any associated risks are properly managed. 
  
  Related Information: 
  The residual maturity class is closely related to other terms such as fair value, amortized cost, and impairment. It is important to understand how these terms interact in order to properly manage financial products in SAP.