What is differentiation term in SAP FIN-FSCM-TRM-TM - Transaction Manager?

SAP Term: differentiation term

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: Is used for position management purposes. It determines how positions - the smallest unit within a financial subledger - are set up. Differentiation terms are predefined for loans, transactions, listed options, and futures. For securities, some of the differentiation terms are predefined in the system, whilst others can be defined by the user. For example, loans have the following differentiation terms: Valuation area Special valuation class Accounting code Loans contract

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• Key Concepts: 
  Differentiation term is a feature of the Transaction Manager component of SAP Financial Supply Chain Management (FSCM). It allows users to differentiate between different types of transactions, such as sales orders, purchase orders, and invoices. This helps to ensure that the correct transaction type is processed and that the data is accurately recorded. 
  
  How to use it: 
  Differentiation terms can be set up in the Transaction Manager component of SAP FSCM. To do this, users must first define the different types of transactions they want to differentiate between. Then, they must assign a unique code to each type of transaction. Finally, they must assign the appropriate differentiation term to each transaction type. 
  
  Tips & Tricks: 
  When setting up differentiation terms in SAP FSCM, it is important to ensure that all transactions are correctly assigned a differentiation term. This will help to ensure that all transactions are accurately recorded and processed. Additionally, it is important to keep track of any changes made to the differentiation terms, as this can affect how transactions are processed. 
  
  Related Information: 
  For more information on setting up differentiation terms in SAP FSCM, please refer to the official SAP documentation. Additionally, there are many online resources available that provide step-by-step instructions on how to set up differentiation terms in SAP FSCM.