What is base amount in SAP FI - Financial Accounting?

SAP Term: base amount

• Component: FI

• Component Name: Financial Accounting

• Description: Amount of money used as the lower limit for other invoices.

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• Key Concepts: 
  Base amount is a term used in SAP Financial Accounting (FI) to refer to the amount of money that is used as the basis for calculating taxes, discounts, and other financial transactions. It is usually the total amount of a transaction before any taxes or discounts are applied. 
  
  How to use it: 
  In SAP FI, base amount is used to calculate taxes and discounts. When creating a financial document, such as an invoice or a purchase order, the base amount is entered first. This amount is then used to calculate any applicable taxes or discounts. 
  
  Tips & Tricks: 
  When entering the base amount in SAP FI, it is important to make sure that the correct currency is selected. This will ensure that the correct taxes and discounts are calculated. Additionally, it is important to double-check the base amount before submitting the document, as any mistakes can lead to incorrect calculations. 
  
  Related Information: 
  The base amount can also be referred to as the net amount or gross amount. Additionally, it is important to note that the base amount may be different from the total amount due after taxes and discounts are applied.