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

SAP Term: futures contract

• Component: LO-AGR-CC

• Component Name: Commodity Contracts, Expenses, Basic Functions

• Description: A contract to buy specific quantities of a commodity at a specified price with delivery set at a specified time in the future.

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• Key Concepts: 
  A futures contract is an agreement between two parties to buy or sell a commodity or financial instrument at a predetermined price at a specified time in the future. It is a type of derivative instrument, meaning that its value is derived from the underlying asset. In the case of SAP, the LO-AGR-CC Commodity Contracts, Expenses, Basic Functions component is used to manage and track futures contracts. 
  
  How to use it: 
  The LO-AGR-CC component can be used to create and manage futures contracts. It allows users to enter details such as the contract type, quantity, price, and expiration date. The component also provides tools for tracking and managing the contracts, such as the ability to view open positions and generate reports. 
  
  Tips & Tricks: 
  When creating a futures contract, it is important to ensure that all of the details are accurate and up-to-date. Additionally, it is important to monitor the contracts regularly to ensure that they are still valid and that any changes in market conditions are taken into account. 
  
  Related Information: 
  The LO-AGR-CC component can be used in conjunction with other SAP components such as LO-MD-MM (Materials Management) and FI (Financial Accounting) to manage and track commodities and financial instruments. Additionally, there are various third-party tools available that can be used to supplement the functionality of the LO-AGR-CC component.