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

SAP Term: valuation period

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: Period of time for which the designation of a hedging instrument from a portfolio hedging relationship is valid. At the end of the valuation period, a key date valuation is performed. Once a valuation period expires, it is closed by the Accounting component.

Smart SAP Assistant

• Key Concepts: 
  Valuation period is a term used in the Accounting for Financial Products (AFP) component of SAP. It is a period of time during which the value of a financial product is calculated. This value is used to determine the amount of money that needs to be paid or received by the customer or company. 
  
  How to use it: 
  The valuation period is set up in the SAP system and can be adjusted as needed. The period can be set up to be a specific number of days, weeks, months, or years. The value of the financial product is then calculated at the end of each period and used to determine the amount of money that needs to be paid or received. 
  
  Tips & Tricks: 
  It is important to ensure that the valuation period is set up correctly in order to ensure accurate calculations. It is also important to keep track of any changes that are made to the valuation period as this can affect the amount of money that needs to be paid or received. 
  
  Related Information: 
  The valuation period is closely related to other terms such as interest rate, maturity date, and principal amount. It is important to understand how these terms interact with each other in order to ensure accurate calculations. Additionally, it is important to understand how changes in these terms can affect the amount of money that needs to be paid or received.