What is contractual cash flow in SAP FS-BA-PM-GM - General Calculation and Valuation Methods?

SAP Term: contractual cash flow

• Component: FS-BA-PM-GM

• Component Name: General Calculation and Valuation Methods

• Description: The quantity of all future contractually fixed payments or payment advices for at least the current fixed-rate period. These are determined on the basis of all actual payments known at the time of creation including the payments with a value date in the future. Non-deterministic "soft" contract elements are ignored.

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• Key Concepts: 
  Contractual cash flow is a term used in the SAP FS-BA-PM-GM General Calculation and Valuation Methods component. It is a method of calculating the cash flow of a contract, such as a loan or lease agreement, over its lifetime. This calculation takes into account the payments made and received, as well as any interest or fees associated with the contract. 
  
  How to use it: 
  The contractual cash flow calculation can be used to determine the total cost of a contract over its lifetime. This calculation can be used to compare different contracts and determine which one is the most cost-effective. It can also be used to assess the risk associated with a particular contract. 
  
  Tips & Tricks: 
  When calculating contractual cash flow, it is important to consider all of the factors that could affect the total cost of the contract. This includes any fees or interest that may be charged, as well as any changes in market conditions that could affect the value of the contract. 
  
  Related Information: 
  The contractual cash flow calculation is closely related to other financial calculations, such as net present value and internal rate of return. These calculations can be used to assess the profitability of a particular contract or investment.