What is premium in SAP LO-AGR - SAP Agricultural Contract Management?

SAP Term: premium

• Component: LO-AGR

• Component Name: SAP Agricultural Contract Management

• Description: A priced quantity that has a basis component, but no futures price or reference to the basis component of a price.

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• Key Concepts: 
  Premium is a term used in SAP Agricultural Contract Management (LO-AGR) to refer to the additional payment made by the buyer to the seller for a specific contract. This payment is usually made in addition to the agreed-upon price of the goods or services being purchased. Premiums can be used to incentivize sellers to meet certain criteria, such as meeting delivery deadlines or providing higher quality goods. 
  
  How to Use It: 
  Premiums can be set up in SAP Agricultural Contract Management (LO-AGR) by creating a premium contract. This contract will specify the conditions under which the premium will be paid, such as meeting delivery deadlines or providing higher quality goods. Once the conditions are met, the premium will be automatically calculated and paid out to the seller. 
  
  Tips & Tricks: 
  When setting up a premium contract, it is important to ensure that all conditions are clearly defined and that all parties involved understand them. This will help ensure that the premium is paid out correctly and on time. Additionally, it is important to keep track of any changes in market conditions that may affect the amount of premium paid out. 
  
  Related Information: 
  For more information on setting up and managing premiums in SAP Agricultural Contract Management (LO-AGR), please refer to the official SAP documentation. Additionally, there are many online resources available that provide helpful tips and tricks for managing premiums in SAP.