What is financial category in SAP PPM-PFM - Portfolio Management?

SAP Term: financial category

• Component: PPM-PFM

• Component Name: Portfolio Management

• Description: A logical group of financial items such as costs or revenue.

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• Key Concepts: 
  Financial Category is a component of SAP Portfolio and Project Management (PPM-PFM) that allows users to classify and group financial data. It is used to categorize financial information such as budget, cost, and revenue. Financial Categories are used to create a hierarchical structure for financial data, allowing users to easily analyze and report on their financial data. 
  
  How to use it: 
  Financial Categories can be created in the SAP PPM-PFM system by navigating to the Financial Categories tab in the Portfolio Management module. From there, users can create new categories and assign them to specific projects or portfolios. Once created, Financial Categories can be used to filter and report on financial data. 
  
  Tips & Tricks: 
  When creating Financial Categories, it is important to consider how they will be used in reporting. It is best practice to create categories that are specific enough to provide meaningful insights into the financial data, but not so specific that they become difficult to manage. 
  
  Related Information: 
  Financial Categories are closely related to Cost Objects in SAP PPM-PFM. Cost Objects are used to track costs associated with a project or portfolio, while Financial Categories are used to classify and group those costs.