What is 'ultimate but not incurred' in SAP FS-BA-PM-SFA - Smart Accounting for Financial Instruments?

ultimate but not incurred - Overview

• Component: FS-BA-PM-SFA

• Component Name: Smart Accounting for Financial Instruments

• Description: Ultimate but not incurred: BECF lifecycle stage in which the insurance contract has been concluded but it has not yet reached its inception date.

ultimate but not incurred - Details

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  Key Concepts: 
  Ultimate but not incurred is a term used in the FS-BA-PM-SFA Smart Accounting for Financial Instruments component of SAP. It is a concept used to describe the accounting of financial instruments that have been issued but not yet settled. This means that the financial instrument has been issued, but the transaction has not yet been completed and the funds have not yet been received. 
  
  How to use it: 
  In order to use this concept, it is important to understand the different types of financial instruments that can be issued. These include bonds, stocks, and derivatives. Once the type of instrument has been identified, it is necessary to determine whether or not the instrument has been issued but not yet settled. If this is the case, then ultimate but not incurred should be used to account for the transaction. 
  
  Tips & Tricks: 
  When using ultimate but not incurred, it is important to keep track of all transactions related to the financial instrument. This includes any fees or commissions associated with the transaction as well as any interest that may be due on the instrument. Additionally, it is important to ensure that all transactions are properly recorded in order to ensure accuracy and compliance with accounting standards. 
  
  Related Information: 
  Ultimate but not incurred is just one of many concepts related to financial instruments and accounting