What is tranche in SAP IS-U-EPM - Energy Portfolio Management?

SAP Term: tranche

• Component: IS-U-EPM

• Component Name: Energy Portfolio Management

• Description: An entity for energy procurement that is generated based on the tranching rule of a plan item. Each tranche is initially based on an absolute quantity of energy. The total quantity of a plan item is converted to a load shape for procurement using the distribution rule of the plan item. This load shape is then used to evaluate the absolute quantity for each tranche.

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• Key Concepts: 
  Tranche is a term used in SAP IS-U-EPM Energy Portfolio Management to refer to a portion of a portfolio that is divided into smaller parts. It is used to manage the risk associated with large portfolios by dividing them into smaller, more manageable parts. 
  
  How to use it: 
  Tranches can be used to manage the risk associated with large portfolios by dividing them into smaller, more manageable parts. This allows for more efficient management of the portfolio and reduces the risk associated with large portfolios. Tranches can also be used to diversify investments, as each tranche can be invested in different assets or markets. 
  
  Tips & Tricks: 
  When using tranches, it is important to consider the size of each tranche and how it will affect the overall portfolio. It is also important to consider the risk associated with each tranche and how it will affect the overall portfolio. Additionally, it is important to consider the liquidity of each tranche and how it will affect the overall portfolio. 
  
  Related Information: 
  Tranches are commonly used in financial markets, such as mortgage-backed securities and collateralized debt obligations. They are also used in energy markets, such as electricity and natural gas markets. Additionally, tranches are used in other industries, such as insurance and real estate.