What is basic index in SAP IS-U-FPC - Formula-Based Price Calculation?

SAP Term: basic index

• Component: IS-U-FPC

• Component Name: Formula-Based Price Calculation

• Description: A superordinate term that comprises a basic index definition and a basic index value

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• Key Concepts: 
  Basic index is a component of the Formula-Based Price Calculation (FPC) module in SAP IS-U. It is used to calculate the price of a service based on a formula that takes into account various factors such as the cost of materials, labor, and overhead. The basic index is used to determine the base price of a service and can be adjusted by other factors such as discounts or taxes. 
  
  How to use it: 
  The basic index is used to calculate the base price of a service. This base price can then be adjusted by other factors such as discounts or taxes. To use the basic index, you must first define the formula that will be used to calculate the base price. This formula should take into account all relevant factors such as cost of materials, labor, and overhead. Once the formula has been defined, you can then enter the values for each factor into the system and the basic index will calculate the base price for the service. 
  
  Tips & Tricks: 
  When defining your formula for calculating the base price, make sure to include all relevant factors such as cost of materials, labor, and overhead. This will ensure that your base price is accurate and reflects all costs associated with providing the service. Additionally, make sure to regularly review and update your formula as costs may change over time. 
  
  Related Information: 
  For more information on using the basic index in SAP IS-U FPC, please refer to SAP Help documentation at https://help.sap.com/viewer/product/ISU_FPC/latest/en-US