What is condition determination in SAP FS-AM-PR-CD - Financial Condition?

SAP Term: condition determination

• Component: FS-AM-PR-CD

• Component Name: Financial Condition

• Description: A procedure for determining the level of a condition that is to be used for interest and charge calculation. The level of the condition can be found for a certain period of use, by way of a determination period, and on the basis of the aggregate of a turnover class.

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• Key Concepts: 
  Condition determination is a component of the SAP Financial Accounting (FI) module. It is used to define and manage conditions for pricing, discounts, and taxes. It allows users to set up conditions for different types of transactions, such as sales orders, purchase orders, and invoices. The conditions are then used to calculate the correct prices and taxes for each transaction. 
  
  How to use it: 
  To use condition determination, users must first define the conditions they want to use. This includes setting up the pricing, discounts, and taxes for each condition. Once the conditions are defined, they can be assigned to different transactions. When a transaction is created, the system will automatically calculate the correct prices and taxes based on the assigned conditions. 
  
  Tips & Tricks: 
  When setting up conditions for pricing and discounts, it is important to consider how they will interact with each other. For example, if two discounts are applied to a transaction, it is important to make sure that the discounts do not cancel each other out or create an incorrect total price. 
  
  Related Information: 
  Condition determination is closely related to other components of the SAP Financial Accounting module, such as pricing and billing. It is also related to other modules such as Sales and Distribution (SD) and Materials Management (MM).