What is simulation calculation rule in SAP FS-LRM - Liquidity and Risk Management?

SAP Term: simulation calculation rule

• Component: FS-LRM

• Component Name: Liquidity and Risk Management

• Description: Logic to calculate simulated output cash flows based on input cash flows and scenario parameters, incl. market data.

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• Key Concepts: 
  Simulation calculation rule is a feature of the FS-LRM Liquidity and Risk Management component of SAP. It allows users to simulate the effects of different liquidity and risk management strategies on their financial data. The simulation calculation rule enables users to analyze the impact of different strategies on their financial data, such as cash flow, liquidity, and risk. 
  
  How to use it: 
  To use the simulation calculation rule, users must first define the parameters of their simulation. This includes setting up the liquidity and risk management strategies they want to test, as well as defining the data points they want to analyze. Once these parameters are set, users can run the simulation and view the results. 
  
  Tips & Tricks: 
  When setting up a simulation calculation rule, it is important to consider all potential scenarios that could affect your financial data. This will ensure that you get accurate results from your simulations. Additionally, it is important to review the results of your simulations regularly in order to make sure that your strategies are still effective. 
  
  Related Information: 
  For more information about the FS-LRM Liquidity and Risk Management component of SAP, please visit https://help.sap.com/viewer/product/FS-LRM/1.0/en-US. Additionally, for more information about simulation calculation rules in general, please visit https://www.sapinsideronline.com/article/simulation-calculation-rules-in-sap/.