What is 'averaging period' in SAP IS-OIL-DS-MAP - Marketing, Accounting and Pricing?

averaging period - Overview

• Component: IS-OIL-DS-MAP

• Component Name: Marketing, Accounting and Pricing

• Description: A period of time that is used in formual and average pricing to determine the average of external quotations.

averaging period - Details

• 
  Key Concepts: 
  Averaging period is a feature of the IS-OIL-DS-MAP Marketing, Accounting and Pricing component of SAP. It allows users to define a period of time for which they can average out the costs and revenues associated with their operations. This helps to smooth out fluctuations in the market and ensure that the company’s financials remain stable. 
  
  How to use it: 
  To use the averaging period feature, users must first define the period of time they wish to average out their costs and revenues. This can be done by setting a start date and an end date for the period. Once this is done, users can then enter their costs and revenues into the system and the system will automatically calculate the average cost or revenue for that period. 
  
  Tips & Tricks: 
  When setting up an averaging period, it is important to consider how long you want it to last. If you set it too short, you may not get an accurate picture of your financials. On the other hand, if you set it too long, you may miss out on potential opportunities in the market. It is best to find a balance between these two extremes. 
  
  Related Information: 
  The averaging period feature is closely related to other features in IS-OIL-DS-MAP such as pricing rules and cost allocation. It is important to understand how these