What is external valuation model in SAP (FS-BA - Bank Analyzer)?

SAP Term: external valuation model

• Component: FS-BA

• Component Name: Bank Analyzer

• Description: Valuation mode that the customers adds to the valuation models that are delivered by SAP.

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• Key Concepts: 
  External Valuation Model is a feature of the FS-BA Bank Analyzer component of SAP. It allows users to define and manage external valuation models for their banking transactions. This feature enables users to define and manage external valuation models for their banking transactions, such as interest rate swaps, foreign exchange transactions, and other derivatives. The external valuation model is used to calculate the value of a transaction based on market conditions. 
  
  How to use it: 
  To use the external valuation model, users must first define the parameters of the model. This includes defining the type of transaction, the currency, and the interest rate. Once these parameters are defined, users can then enter the data for the transaction into the system. The system will then calculate the value of the transaction based on the parameters that were entered. 
  
  Tips & Tricks: 
  When using the external valuation model, it is important to ensure that all of the parameters are accurate and up-to-date. This will ensure that the value of the transaction is calculated correctly. Additionally, it is important to keep track of any changes in market conditions that may affect the value of a transaction. 
  
  Related Information: 
  The external valuation model is part of SAP’s FS-BA Bank Analyzer component. This component also includes features such as cash flow forecasting, liquidity management, and risk management. Additionally, SAP provides a range of other banking solutions such as SAP Banking Services and SAP Banking Solutions.