What is 'funds transfer price rate' in SAP FS-PER - SAP Profitability and Performance Management?

funds transfer price rate - Overview

• Component: FS-PER

• Component Name: SAP Profitability and Performance Management

• Description: Function to perform funds transfer pricing rate calculations based on duration/matched maturity and on the net present value approach

funds transfer price rate - Details

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  Key Concepts: 
  Funds Transfer Price Rate (FTP) is a component of SAP Profitability and Performance Management (FS-PER). It is used to calculate the cost of transferring funds between different accounts or entities. The FTP rate is determined by the cost of the transfer, such as fees, taxes, and other costs associated with the transfer. 
  
  How to use it: 
  The FTP rate is used to calculate the cost of transferring funds between different accounts or entities. The rate is determined by the cost of the transfer, such as fees, taxes, and other costs associated with the transfer. The rate can be set manually or automatically based on market conditions. Once set, the rate will be applied to all transfers made between accounts or entities. 
  
  Tips & Tricks: 
  When setting the FTP rate manually, it is important to consider all costs associated with the transfer. This includes fees, taxes, and other costs that may be incurred during the transfer. Additionally, it is important to keep an eye on market conditions and adjust the rate accordingly. 
  
  Related Information: 
  The FTP rate is used in conjunction with other components of SAP Profitability and Performance Management (FS-PER). These components include cost allocation, profitability analysis, and budgeting. Additionally, it can be used in conjunction with other financial management tools such as cash flow forecasting and financial reporting.