What is interest compensation contract in SAP FS-AM-CM - Contract Management?

SAP Term: interest compensation contract

• Component: FS-AM-CM

• Component Name: Contract Management

• Description: The master contract structured contract for the agreement of the contracts and conditions of the interest compensation.

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• Key Concepts: 
  An interest compensation contract is a type of contract used in SAP Contract Management (FS-AM-CM) to manage the payment of interest on overdue payments. It allows for the calculation of interest on overdue payments and the automatic payment of the interest to the creditor. 
  
  How to use it: 
  In SAP Contract Management, an interest compensation contract is created by entering the details of the creditor, such as name, address, and bank account information. The contract also includes details about the interest rate and payment terms. Once the contract is created, it can be used to calculate and pay interest on overdue payments. 
  
  Tips & Tricks: 
  When creating an interest compensation contract in SAP Contract Management, it is important to ensure that all of the details are accurate and up-to-date. This will ensure that the correct amount of interest is calculated and paid on time. 
  
  Related Information: 
  For more information about SAP Contract Management and how to create an interest compensation contract, please refer to the SAP Help Portal or contact your local SAP support team.