What is governing analysis in SAP LO-AGR-CC - Commodity Contracts, Expenses, Basic Functions?

SAP Term: governing analysis

• Component: LO-AGR-CC

• Component Name: Commodity Contracts, Expenses, Basic Functions

• Description: The analysis or grade determination used for contract fulfillment and settlement as per the contract terms.

Smart SAP Assistant

• Key Concepts: 
  Governing analysis is a feature of the LO-AGR-CC Commodity Contracts, Expenses, Basic Functions component of SAP. It is used to analyze the cost and revenue of a contract and to determine the profitability of a contract. It also helps to identify potential risks associated with a contract. 
  
  How to use it: 
  To use governing analysis, you must first enter the relevant data into the system. This includes the contract details, such as the start and end dates, the quantity of goods or services being provided, and any applicable taxes or fees. Once this data is entered, you can then run the governing analysis to determine the profitability of the contract. 
  
  Tips & Tricks: 
  When running governing analysis, it is important to ensure that all relevant data is entered accurately. This will help to ensure that the results are accurate and reliable. Additionally, it is important to review the results of governing analysis regularly in order to identify any potential risks associated with a contract. 
  
  Related Information: 
  Governing analysis is closely related to other features of SAP such as cost analysis and profitability analysis. Additionally, it can be used in conjunction with other features such as budgeting and forecasting in order to gain a better understanding of a contract's profitability.