What is effective capital per payment in SAP FS-BA-PM-HP - Hedge Processes?

SAP Term: effective capital per payment

• Component: FS-BA-PM-HP

• Component Name: Hedge Processes

• Description: Net present value of a cash flow that is discounted by the effective interest rate on the evaluation date.

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• Key Concepts: 
  Effective capital per payment is a term used in the SAP FS-BA-PM-HP Hedge Processes component. It is a calculation that determines the amount of capital that is required to be held in reserve for each payment made. This calculation takes into account the current market conditions, the amount of risk associated with the payment, and other factors. 
  
  How to use it: 
  The effective capital per payment calculation is used to determine the amount of capital that must be held in reserve for each payment made. This calculation takes into account the current market conditions, the amount of risk associated with the payment, and other factors. The calculation can be used to help manage risk and ensure that sufficient capital is available for each payment. 
  
  Tips & Tricks: 
  When calculating effective capital per payment, it is important to consider all relevant factors such as market conditions, risk associated with the payment, and other factors. Additionally, it is important to regularly review and update the calculation as market conditions change. 
  
  Related Information: 
  For more information on effective capital per payment and other SAP FS-BA-PM-HP Hedge Processes components, please refer to the SAP documentation or contact your SAP representative.