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

SAP Term: settlement

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: A form of exercising an option. In the case of physical settlement, the underlying is actually delivered according to the terms arranged. With a cash settlement, a cash payment is made, which amounts to the difference between the strike price and the current spot rate.

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• Key Concepts: 
  Settlement is a process in SAP Transaction Manager (FIN-FSCM-TRM-TM) that allows for the transfer of funds between two parties. It is used to reconcile accounts and ensure that all transactions are accounted for. It is also used to settle disputes between parties, such as when one party does not pay the other. 
  
  How to use it: 
  In SAP Transaction Manager, settlement is initiated by entering the details of the transaction into the system. This includes the amount to be transferred, the date of the transaction, and any other relevant information. Once this information is entered, the system will generate a settlement document that both parties must sign in order to complete the transaction. 
  
  Tips & Tricks: 
  When entering settlement information into SAP Transaction Manager, it is important to double-check all details before submitting. This will help ensure that all parties involved are aware of the terms of the transaction and can avoid any potential disputes. 
  
  Related Information: 
  Settlement is closely related to other processes in SAP Transaction Manager, such as payment processing and dispute resolution. Understanding how these processes work together can help ensure that all transactions are handled efficiently and accurately.