What is fund type in SAP FS-LOC-BR - Localization of Banking in Brazil?

SAP Term: fund type

• Component: FS-LOC-BR

• Component Name: Localization of Banking in Brazil

• Description: An attribute that describes the purpose for which a funding organization has lent funds to a bank. For example, following a drought a funding organization allocates funds to farmers. Here, the fund type is agriculture.

Smart SAP Assistant

• Key Concepts: 
  Fund type is a component of the FS-LOC-BR Localization of Banking in Brazil module in SAP. It is used to define the type of fund that is being used in a transaction. This can include funds from a bank account, a credit card, or other sources. 
  
  How to use it: 
  In order to use the fund type component, users must first define the fund type in the system. This can be done by entering the fund type code and description into the system. Once this is done, users can then assign the fund type to a transaction when it is created. 
  
  Tips & Tricks: 
  When defining a fund type, it is important to make sure that the code and description are accurate and descriptive. This will help ensure that users are able to easily identify the fund type when assigning it to a transaction. 
  
  Related Information: 
  The FS-LOC-BR Localization of Banking in Brazil module also includes other components such as bank accounts, payment methods, and payment terms. These components are all related to the fund type component and should be taken into consideration when setting up transactions.