What is time lag in SAP IS-U-FPC - Formula-Based Price Calculation?

SAP Term: time lag

• Component: IS-U-FPC

• Component Name: Formula-Based Price Calculation

• Description: The interval that is skipped when a pricing rule is applied. For example, the pricing rule HEL 6/1/3 specifies that the price for the next three months will be based on the average price for six months in the past ending one month the time lag before the start of the validity period. So, the price for the 4th quarter of 2012 October to December would be the average of the prices valid between March and August of that year.

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• Key Concepts: 
  Time lag is a feature of the IS-U-FPC Formula-Based Price Calculation component of SAP. It allows for the calculation of prices based on a time lag, which is the difference between the time of the price calculation and the time of the actual transaction. This allows for more accurate pricing calculations, as prices can be adjusted to reflect changes in market conditions over time. 
  
  How to use it: 
  Time lag can be used in SAP by setting up a formula-based price calculation in the IS-U-FPC component. The formula should include a time lag parameter, which will be used to calculate the price based on the difference between the time of the price calculation and the time of the actual transaction. The formula should also include other parameters such as cost, quantity, and discounts. 
  
  Tips & Tricks: 
  When setting up a formula-based price calculation with a time lag parameter, it is important to consider how long the time lag should be. If it is too short, prices may not reflect changes in market conditions over time. If it is too long, prices may not be accurate due to changes in market conditions over time. 
  
  Related Information: 
  For more information on using time lag in SAP, please refer to SAP's documentation on Formula-Based Price Calculation (IS-U-FPC). Additionally, there are many online resources available that provide tips and tricks for using SAP's IS-U-FPC component.