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

SAP Term: provisional price

• Component: LO-AGR-CC

• Component Name: Commodity Contracts, Expenses, Basic Functions

• Description: The price used until the final price is established. It is calculated for use in credit evaluation, provisional invoicing, advance payment, or pre-payment using the following information: Any element of the pricing formula basis, futures, ratio, and so on that is already fixed in the contract with the counterparty. The price defined via BRFPlus provisional pricing rules for those elements that are unfixed at the time of provisional price retrieval.

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• Key Concepts: 
  Provisional price is a feature of the LO-AGR-CC Commodity Contracts, Expenses, Basic Functions component of SAP. It allows users to enter a provisional price for a contract item, which is then used to calculate the total value of the contract. This provisional price can be changed at any time before the contract is finalized. 
  
  How to use it: 
  To use the provisional price feature, users must first enter the item details into the system. This includes the item description, quantity, and unit of measure. Once these details are entered, users can then enter a provisional price for the item. This provisional price will be used to calculate the total value of the contract. 
  
  Tips & Tricks: 
  It is important to remember that the provisional price can be changed at any time before the contract is finalized. This allows users to adjust their pricing if needed without having to start from scratch. Additionally, it is important to double-check all entries before finalizing the contract to ensure accuracy. 
  
  Related Information: 
  For more information on using the provisional price feature in SAP, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/LO-AGR-CC/latest/en-US/f8d7f9a3e2b14c8a9f3d7c2b6f5e4d1a.html