What is contract time model in SAP FS-PM - Policy Management?

SAP Term: contract time model

• Component: FS-PM

• Component Name: Policy Management

• Description: A time model that controls, for processing at contract level, the way single contracts are processd using time model functions. The contract time model only takes account of dates of the contract that is currently being processed, and not those of its dependent contracts.

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• Key Concepts: 
  The contract time model in SAP FS-PM Policy Management is a tool used to manage the duration of contracts. It allows users to define the start and end dates of contracts, as well as the duration of each contract. The contract time model also allows users to define the frequency of payments and the payment terms associated with each contract. 
  
  How to use it: 
  To use the contract time model, users must first define the start and end dates of the contract. This can be done by entering the start date in the “Start Date” field and the end date in the “End Date” field. Once this is done, users can then define the frequency of payments and payment terms associated with each contract. This can be done by selecting a payment frequency from the drop-down menu and entering the payment terms in the “Payment Terms” field. 
  
  Tips & Tricks: 
  When defining payment terms, it is important to ensure that all payments are made on time. This will help to ensure that contracts are not terminated prematurely due to late payments. Additionally, it is important to ensure that all payment terms are clearly defined in order to avoid any misunderstandings between parties. 
  
  Related Information: 
  For more information on how to use the contract time model in SAP FS-PM Policy Management, please refer to SAP’s official documentation on the topic. Additionally, there are several online tutorials available which provide step-by-step instructions on how to use this feature.