What is contract price in SAP LO-AGR-CC - Commodity Contracts, Expenses, Basic Functions?

SAP Term: contract price

• Component: LO-AGR-CC

• Component Name: Commodity Contracts, Expenses, Basic Functions

• Description: The mutually agreed price, or method to determine price, upon which to apply premiums and discounts and which the buyer agrees to pay the seller upon fulfillment of the contractual agreement. The contract price is stored in the pricing aspects of the contract and excludes any itemized adjustments that would show on the invoice for example, taxes, rebates, and so on.

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• Key Concepts: 
  Contract price is a term used in SAP LO-AGR-CC Commodity Contracts, Expenses, Basic Functions. It is the agreed upon price between two parties for a specific commodity or service. The contract price is set at the time of the contract and is usually fixed for the duration of the contract. 
  
  How to use it: 
  In SAP LO-AGR-CC Commodity Contracts, Expenses, Basic Functions, the contract price is used to calculate the total cost of a contract. The total cost of a contract is calculated by multiplying the contract price by the quantity of the commodity or service being purchased. 
  
  Tips & Tricks: 
  When setting a contract price, it is important to consider all factors that may affect the cost of the commodity or service being purchased. This includes market prices, taxes, shipping costs, and any other fees that may be associated with the purchase. 
  
  Related Information: 
  The contract price can also be used to calculate other costs associated with a contract such as profit margins and discounts. Additionally, it can be used to compare different contracts and determine which one offers the best value for money.