What is experience variance in SAP FS-BA-PM-SFA - Smart Accounting for Financial Instruments?

SAP Term: experience variance

• Component: FS-BA-PM-SFA

• Component Name: Smart Accounting for Financial Instruments

• Description: A change in the accounting balance due to variations in expectations that result from specific events that have occurred, for example.

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• Key Concepts: 
  Experience variance is a term used in the SAP FS-BA-PM-SFA Smart Accounting for Financial Instruments component. It is a measure of the difference between the expected and actual results of a financial instrument. It is calculated by subtracting the expected result from the actual result. 
  
  How to use it: 
  Experience variance can be used to measure the performance of a financial instrument over time. It can be used to identify areas where performance has been better or worse than expected, and to identify potential areas for improvement. 
  
  Tips & Tricks: 
  When calculating experience variance, it is important to consider all factors that may have affected the performance of the financial instrument, such as market conditions, economic conditions, and other external factors. 
  
  Related Information: 
  Experience variance is closely related to other measures of financial performance, such as return on investment (ROI) and risk-adjusted return on investment (RAROI). It can also be used in conjunction with other measures of financial performance, such as volatility and liquidity.