What is mark-to-market in SAP LO-CMM - Commodity Management in Logistics?

SAP Term: mark-to-market

• Component: LO-CMM

• Component Name: Commodity Management in Logistics

• Description: Commodity Management in Logistik Comparison of the transaction price with the actual market price for a financial transaction. The difference represents the revenue or expense that would be generated from this financial transaction on the key date.

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• Key Concepts: 
  Mark-to-market (MTM) is a term used in the SAP LO-CMM Commodity Management component to refer to the process of valuing a portfolio of financial instruments at the current market price. This process is used to determine the current value of a portfolio and to assess its performance over time. 
  
  How to use it: 
  In SAP LO-CMM Commodity Management, mark-to-market is used to calculate the current value of a portfolio of financial instruments. This process involves taking into account the current market price of each instrument in the portfolio and then calculating the total value of the portfolio. This value can then be used to assess the performance of the portfolio over time. 
  
  Tips & Tricks: 
  When using mark-to-market in SAP LO-CMM Commodity Management, it is important to ensure that all relevant market prices are taken into account when calculating the current value of a portfolio. Additionally, it is important to regularly review and update the market prices used in order to ensure that the most accurate values are being used. 
  
  Related Information: 
  Mark-to-market is also used in other areas of SAP, such as Financial Accounting (FI) and Controlling (CO). Additionally, mark-to-market can be used in other areas outside of SAP, such as investment banking and asset management.