What is 'valuation point' in SAP LO-AGR-CC - Commodity Contracts, Expenses, Basic Functions?

valuation point - Overview

• Component: LO-AGR-CC

• Component Name: Commodity Contracts, Expenses, Basic Functions

• Description: Defines the pricing approach for an individual line item in a commodities contract.

valuation point - Details

• 
  Key Concepts: 
  Valuation point is a term used in the SAP LO-AGR-CC Commodity Contracts, Expenses, Basic Functions component. It is a point in time when the value of a commodity contract is determined. This value is used to calculate the cost of goods sold and the inventory value of the commodity. 
  
  How to use it: 
  The valuation point is determined by the contract terms and conditions. It can be set to a specific date or time, or it can be based on market conditions. The valuation point can also be set to a specific price or quantity. Once the valuation point is set, it cannot be changed. 
  
  Tips & Tricks: 
  When setting up a commodity contract, it is important to consider the valuation point carefully. The valuation point should be set to a time that accurately reflects the market conditions at that time. This will ensure that the cost of goods sold and inventory value are accurate. 
  
  Related Information: 
  The valuation point is closely related to other terms such as delivery date, settlement date, and expiration date. These terms are all used to determine when a commodity contract will be settled and how much it will cost. It is important to understand how these terms interact with each other in order to accurately manage commodity contracts.