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

SAP Term: nominal utilization

• Component: FS-MCM

• Component Name: Master Contract Management

• Description: The contractually agreed credit commitment of the participating contracts and accounts in a facility. The amount of the nominal utilization is checked against the global limit of a facility to ensure the structural consistency of the master contract hierarchy. The amount is not dependent on the receivables or payables on the participant accounts. The nominal utilization can be based on the following calculation bases: On loans accounts: The contract capital The current contract capital The commitment capital The current commitment capital The nominal capital On checking accounts: The external limit In master contracts: The global external limit or the calculated nominal utilization of the participating accounts. The system calculates the nominal utilization by starting with the contract present of the relevant master contract and ending no further than 50 years in the future.

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• Key Concepts: 
  Nominal utilization is a feature of the FS-MCM Master Contract Management component of SAP. It allows users to define the maximum utilization of a contract, which is the amount of time or resources that can be used for a given contract. This helps to ensure that contracts are not over-utilized and that resources are used efficiently. 
  
  How to use it: 
  Nominal utilization can be set up in the FS-MCM Master Contract Management component of SAP. To do this, users must first define the maximum utilization for a given contract. This can be done by entering the maximum utilization in the “Nominal Utilization” field in the contract details page. Once this is done, users can then monitor the utilization of the contract to ensure that it does not exceed the maximum utilization. 
  
  Tips & Tricks: 
  It is important to remember that nominal utilization should be set up for each contract individually. This will ensure that each contract is monitored and managed properly. Additionally, it is important to regularly review and update nominal utilization settings as needed to ensure that contracts are not over-utilized. 
  
  Related Information: 
  For more information on nominal utilization in SAP, please refer to the official SAP documentation on FS-MCM Master Contract Management. Additionally, there are many online resources available that provide detailed information on how to set up and use nominal utilization in SAP.