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

SAP Term: residuum

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: The difference between the full fair value and the adjusted amortized hedge cost. From a business perspective, this is the part of the full fair value of a financial instrument that can be traced back to fluctuations in the unhedged risk factors.

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• Key Concepts: 
  Residuum is a term used in the SAP FS-BA-PM-AFP Accounting for Financial Products component. It is a residual value that is calculated at the end of a financial product's life cycle. This value is used to determine the total amount of money that has been invested in the product and the amount of money that has been returned to the investor. 
  
  How to use it: 
  In order to calculate the residuum, you must first determine the total amount of money that has been invested in the product. This can be done by subtracting any fees or costs associated with the product from the initial investment amount. Once this is done, you can then calculate the residuum by subtracting any remaining payments or returns from the initial investment amount. 
  
  Tips & Tricks: 
  When calculating the residuum, it is important to remember that any fees or costs associated with the product should be taken into account. Additionally, it is important to remember that any remaining payments or returns should also be taken into account when calculating the residuum. 
  
  Related Information: 
  The calculation of residuum is an important part of financial product accounting and can be used to determine how much money has been invested in a product and how much money has been returned to an investor. Additionally, it can also be used to determine whether or not a product has been profitable for an investor.