What is calculation of profits or losses after a contract modification in SAP FIN-FSCM-TRM-TM - Transaction Manager?

SAP Term: calculation of profits or losses after a contract modification

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: A process that calculates the correction flows that are generated when a contract is changed. This process ensures that the effective interest rate is constant after a contract modification, which is required according to IFRS 9.

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• Key Concepts: 
  The Transaction Manager component of SAP’s Financial Supply Chain Management (FSCM) module is used to calculate profits or losses after a contract modification. This calculation is based on the difference between the original contract and the modified contract, and takes into account any changes in terms, conditions, or pricing. The Transaction Manager also provides a comprehensive view of all contracts and their associated transactions, allowing users to easily identify any discrepancies or potential issues. 
  
  How to use it: 
  To calculate profits or losses after a contract modification, users must first enter the original contract details into the Transaction Manager. This includes information such as the terms, conditions, and pricing. Once this is done, users can then enter the modified contract details and the system will automatically calculate the difference between the two contracts. The resulting profits or losses will be displayed in an easy-to-read format. 
  
  Tips & Tricks: 
  When entering contract details into the Transaction Manager, it is important to ensure that all information is accurate and up-to-date. This will help to ensure that the resulting calculations are accurate and reliable. Additionally, users should take advantage of the Transaction Manager’s comprehensive view of all contracts and their associated transactions to quickly identify any discrepancies or potential issues. 
  
  Related Information: 
  The Transaction Manager component of SAP’s Financial Supply Chain Management (FSCM) module is part of a larger suite of tools designed to help businesses manage their financial operations more efficiently. Other components include Accounts Receivable, Accounts Payable, Cash Management, and Treasury Management. Additionally, SAP offers a range of consulting services to help businesses optimize their use of these tools.