What is forward exchange in SAP IS-AD - SAP for Aerospace & Defense?

SAP Term: forward exchange

• Component: IS-AD

• Component Name: SAP for Aerospace & Defense

• Description: Aerospace & Defence Industry Solution Service providers use the forward exchange function if they urgently need a serviceable part from the subcontractor even though they have not yet sent the unserviceable parts to the subcontractor for repair. The subcontractor sends a serviceable part from his own stock directly to the service provider. The unserviceable part is sent to the subcontractor at a later point in time, who then repairs it and adds it to his own stock.

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• Key Concepts: 
  Forward exchange is a feature of the IS-AD SAP for Aerospace & Defense component that allows users to enter into a contract to buy or sell foreign currency at a predetermined rate on a future date. This helps to protect against currency fluctuations and can be used to hedge against potential losses. 
  
  How to use it: 
  To use forward exchange, users must first enter into a contract with a financial institution. The contract will specify the amount of foreign currency to be bought or sold, the exchange rate, and the date of the transaction. Once the contract is in place, users can then enter the details into the IS-AD SAP system. 
  
  Tips & Tricks: 
  When entering into a forward exchange contract, it is important to consider the current market conditions and any potential risks associated with the transaction. It is also important to ensure that the contract is properly documented and that all parties involved are aware of their obligations. 
  
  Related Information: 
  For more information on forward exchange and other features of IS-AD SAP for Aerospace & Defense, please refer to the official documentation provided by SAP.