What is future margin income in SAP FS-BA - Bank Analyzer?

SAP Term: future margin income

• Component: FS-BA

• Component Name: Bank Analyzer

• Description: Future margin incomes are defined as the total of the income expected from investments over the next twelve months. This income can be seen as being large enough to cover potential losses from these credits, even after administration costs have been covered.Future margin incomes must not contain income expected from newly created accounts. Assumptions about the development of the expected amount of the receivables and hence revenue from existing accounts must reflect experience, and take into account the effect of any anticipated changes in the terms and conditions of the accounts.

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• Key Concepts: 
  Future Margin Income is a term used in the FS-BA Bank Analyzer component of SAP. It is a measure of the expected income from a loan or other financial instrument over its lifetime. It is calculated by taking into account the expected interest rate, the expected repayment schedule, and any other fees or charges associated with the loan.
  
  How to use it: 
  In FS-BA Bank Analyzer, Future Margin Income can be used to assess the profitability of a loan or other financial instrument. It can be used to compare different loans and determine which one will generate the most income over its lifetime. It can also be used to assess the risk associated with a loan, as higher future margin income typically indicates higher risk.
  
  Tips & Tricks: 
  When calculating future margin income, it is important to take into account any fees or charges associated with the loan. These can have a significant impact on the overall profitability of the loan and should not be overlooked. Additionally, it is important to consider any changes in interest rates that may occur over the lifetime of the loan, as this can also affect the overall profitability.
  
  Related Information: 
  For more information on Future Margin Income and how it is used in FS-BA Bank Analyzer, please refer to SAP's documentation on the topic. Additionally, there are many online resources available that provide more detailed information on how to calculate future margin income and how it can be used in financial analysis.