What is flat price in SAP LO-AGR - SAP Agricultural Contract Management?

SAP Term: flat price

• Component: LO-AGR

• Component Name: SAP Agricultural Contract Management

• Description: A priced quantity with no separate pricing for components such as basis or futures.

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• Key Concepts: 
  Flat price is a pricing model used in SAP Agricultural Contract Management (LO-AGR) that allows for a fixed price to be set for a certain quantity of goods. This means that the price of the goods will remain the same regardless of market fluctuations or other external factors. This type of pricing is often used when there is a high degree of certainty about the future market conditions. 
  
  How to use it: 
  In order to use flat price in SAP Agricultural Contract Management, you must first create a contract with the desired quantity and price. Once the contract is created, you can then set the pricing model to “flat price” and enter the desired fixed price. This will ensure that the price of the goods remains constant regardless of any external factors. 
  
  Tips & Tricks: 
  When using flat price in SAP Agricultural Contract Management, it is important to remember that this type of pricing model is best used when there is a high degree of certainty about future market conditions. If there is any uncertainty, it may be better to use another pricing model such as variable pricing or cost-plus pricing. 
  
  Related Information: 
  For more information on flat price and other pricing models in SAP Agricultural Contract Management, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_AGR_CONTRACT_MANAGEMENT/7.0/en-US