What is 'provisional settlement' in SAP LO-AGR-STL - Agency Business Document, Settlement, Revenue Recognition?

provisional settlement - Overview

• Component: LO-AGR-STL

• Component Name: Agency Business Document, Settlement, Revenue Recognition

• Description: The financial settlement of a load or unit using provisional price and or non-governing weights and grades as the basis for quality adjustment. It is possible to have several provisional settlements per shipment or application.

provisional settlement - Details

• 
  Key Concepts: 
  Provisional settlement is a process in SAP's LO-AGR-STL Agency Business Document, Settlement, Revenue Recognition component. It is used to recognize revenue from an agency business document before the document is fully settled. This allows for the recognition of revenue before the full settlement of the document, which can be beneficial for businesses that need to recognize revenue quickly. 
  
  How to use it: 
  Provisional settlement can be used in SAP's LO-AGR-STL Agency Business Document, Settlement, Revenue Recognition component. To use it, you must first create an agency business document and then enter the provisional settlement information. This includes the amount of revenue to be recognized and the date on which it should be recognized. Once this information is entered, the system will automatically recognize the revenue on the specified date. 
  
  Tips & Tricks: 
  When using provisional settlement in SAP's LO-AGR-STL Agency Business Document, Settlement, Revenue Recognition component, it is important to ensure that all of the necessary information is entered correctly. This includes the amount of revenue to be recognized and the date on which it should be recognized. Additionally, it is important to ensure that all documents are settled in a timely manner so that revenue can be recognized as soon as possible. 
  
  Related Information: 
  For more information about provisional settlement in SAP's LO-AGR-STL Agency Business Document, Settlement, Revenue Recognition component, please refer