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

SAP Term: valuation remnants

• 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.

Smart SAP Assistant

• 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 official documentation. Additionally, there are many online resources available that provide detailed information on how to use this component and how to interpret valuation remnants.