What is 'simulation liquidity group' in SAP FS-LRM - Liquidity and Risk Management?

simulation liquidity group - Overview

• Component: FS-LRM

• Component Name: Liquidity and Risk Management

• Description: Type of liquidity group that specifies the characteristics according to which cash flows are selected from the database. It also specifies how the selected cash flows are to be calculated, according to defined simulation calculation rules which apply risk parameter curves to the selected cash flows to produce simulated cash flows.

simulation liquidity group - Details

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  Key Concepts: 
  Simulation liquidity group is a component of SAP’s FS-LRM Liquidity and Risk Management module. It is used to simulate the liquidity of a company’s financial assets and liabilities. The simulation liquidity group allows users to analyze the impact of different scenarios on the company’s liquidity position. 
  
  How to use it: 
  The simulation liquidity group can be used to create different scenarios and analyze their impact on the company’s liquidity position. The user can define different parameters such as the amount of cash available, the amount of debt, and the expected return on investments. The user can then simulate different scenarios and analyze the impact on the company’s liquidity position. 
  
  Tips & Tricks: 
  When using the simulation liquidity group, it is important to consider all possible scenarios and their potential impacts on the company’s liquidity position. It is also important to consider the impact of external factors such as changes in interest rates or exchange rates. 
  
  Related Information: 
  For more information about SAP’s FS-LRM Liquidity and Risk Management module, please visit SAP’s website at https://www.sap.com/products/fs-lrm-liquidity-risk-management.html.