What is interpolation procedure in SAP FS-BA-SD - Source Data?

SAP Term: interpolation procedure

• Component: FS-BA-SD

• Component Name: Source Data

• Description: The process used for calculating interpolating a value for example, interest rate or volatility for a term that is not stored in the system.

Smart SAP Assistant

• Key Concepts: 
  Interpolation procedure is a feature of the SAP FS-BA-SD Source Data component. It is used to calculate the value of a variable at a given point in time based on the values of the same variable at two other points in time. This is done by using linear interpolation, which is a mathematical technique that uses two known points to calculate the value of a third point. 
  
  How to use it: 
  To use the interpolation procedure, you must first enter two known points in time and their corresponding values. Then, you can enter the point in time for which you want to calculate the value and the interpolation procedure will calculate it for you. 
  
  Tips & Tricks: 
  When using the interpolation procedure, it is important to make sure that the two known points are close together in time. This will ensure that the calculated value is as accurate as possible. Additionally, it is important to make sure that the values of the two known points are not too far apart, as this could lead to inaccurate results. 
  
  Related Information: 
  The interpolation procedure is similar to extrapolation, which is another mathematical technique used to calculate values at points in time that are not known. However, extrapolation uses more than two known points and can be used to predict future values.