What is rate type in SAP IS-U-BI - Contract Billing?

SAP Term: rate type

• Component: IS-U-BI

• Component Name: Contract Billing

• Description: Classification of a register, flat rate or reference value for billing purposes. In conjunction with rate category, the rate type is used to determine the rate.

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• Key Concepts: 
  Rate type is a component of the IS-U-BI Contract Billing module in SAP. It is used to define the rate at which a customer is charged for a service or product. The rate type can be based on a fixed amount, a percentage, or a combination of both. It can also be based on the customer's usage or other criteria. 
  
  How to use it: 
  Rate types are created in the SAP system and assigned to customers. When creating a rate type, you must specify the rate type name, the rate type category, and the rate type description. You must also specify the rate calculation method, such as fixed amount, percentage, or combination of both. You can also specify any additional criteria that will be used to determine the rate. 
  
  Tips & Tricks: 
  When creating a rate type, it is important to consider how it will be used and what criteria will be used to determine the rate. It is also important to consider how the rate type will interact with other components of the IS-U-BI Contract Billing module. 
  
  Related Information: 
  For more information about rate types and how they are used in SAP IS-U-BI Contract Billing, please refer to the SAP Help documentation.