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

valuation remnants - Overview

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: A book value component that is created when a valuation approach changes for example, for a reclassification or the dissolution of a hedging relationship, and when a new financial year is opened by freezing the valuations of the previous year floating average principle. Valuation remnants can be distributed as a reaction to a position outflow 'floating average' or over the term of the underlying contract.

valuation remnants - Details

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  Key Concepts: 
  Valuation remnants are the residual amounts that remain after a valuation process has been completed. This process is used to determine the value of a financial product, such as a loan or security. The valuation remnants are the difference between the current market value of the product and the amount that was originally invested in it. 
  
  How to use it: 
  Valuation remnants are used in the Accounting for Financial Products (AFP) component of SAP’s Financial Services Business Application (FS-BA-PM). This component allows users to track and manage their investments in financial products, including loans and securities. The valuation remnants are used to determine the current market value of a product and can be used to inform decisions about whether to buy or sell a particular product. 
  
  Tips & Tricks: 
  When using the AFP component, it is important to remember that valuation remnants can change over time. As such, it is important to regularly check the current market value of a product and adjust your investments accordingly. Additionally, it is important to remember that valuation remnants are only one factor in determining the value of a product; other factors such as interest rates and market conditions should also be taken into account. 
  
  Related Information: 
  For more information on how to use the AFP component of SAP’s Financial Services Business Application, please refer to SAP’s