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

SAP Term: premium curve

• Component: LO-AGR

• Component Name: SAP Agricultural Contract Management

• Description: A curve for a commodity for which a commodity curve exists. It accounts for a difference between delivery at a particular location and the commodity curve’s location.

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• Key Concepts: 
  Premium curve is a feature of the SAP Agricultural Contract Management (LO-AGR) component. It is used to define the premium rate for a given crop or commodity. The premium rate is the amount of money paid to the farmer for each unit of the crop or commodity produced. The premium curve is used to determine the amount of money that will be paid out for each unit of the crop or commodity produced. 
  
  How to use it: 
  The premium curve is used to define the premium rate for a given crop or commodity. The premium rate is determined by the market price of the crop or commodity and the amount of money that will be paid out for each unit of the crop or commodity produced. The premium curve can be adjusted to reflect changes in market prices and other factors. 
  
  Tips & Tricks: 
  When setting up a premium curve, it is important to consider factors such as market prices, production costs, and other factors that may affect the amount of money that will be paid out for each unit of the crop or commodity produced. It is also important to consider how long the premium rate will remain in effect and how often it should be adjusted. 
  
  Related Information: 
  The premium curve feature is part of SAP Agricultural Contract Management (LO-AGR). Other features include contract management, pricing, and reporting. For more information on SAP Agricultural Contract Management, please visit https://help.sap.com/viewer/product/LO-AGR/latest/en-US.