1. SAP Glossary
  2. Master Contract Management
  3. effective non-utilization


What is effective non-utilization in SAP FS-MCM - Master Contract Management?


SAP Term: effective non-utilization

  • Component: FS-MCM

  • Component Name: Master Contract Management

  • Description: The difference between the global limit and the effective utilization. This is used for the calculation of commitment charges.


Smart SAP Assistant

  • Key Concepts: 
    Effective non-utilization is a feature of SAP FS-MCM Master Contract Management that allows users to identify and track the utilization of contracts. It helps to ensure that contracts are used in the most efficient and cost-effective manner. The feature also helps to identify any potential risks associated with contract utilization. 
    
    How to use it: 
    To use effective non-utilization, users must first define the criteria for contract utilization. This includes setting up a contract utilization threshold, which is the minimum amount of utilization required for a contract to be considered effective. Once the criteria have been set, users can then monitor the utilization of contracts and take action if necessary. 
    
    Tips & Tricks: 
    When setting up the criteria for effective non-utilization, it is important to consider the specific needs of your organization. For example, if you are a large organization with multiple contracts, you may want to set a higher threshold for contract utilization than a smaller organization with fewer contracts. Additionally, it is important to regularly review and update the criteria as needed in order to ensure that contracts are being used in the most efficient and cost-effective manner. 
    
    Related Information: 
    For more information on effective non-utilization in SAP FS-MCM Master Contract Management, please refer to the official SAP documentation. Additionally, there are several online resources available that provide detailed tutorials and best practices for using this feature.
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