What is deposit requirement in SAP MM - Materials Management?

SAP Term: deposit requirement

• Component: MM

• Component Name: Materials Management

• Description: An agreement between a producer/vendor and a consumer to return or take back a material in exchange for payment/settlement.

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• Key Concepts: 
  Deposit requirement in SAP Materials Management (MM) is a feature that allows you to set a minimum amount of goods that must be delivered before payment is due. This helps to ensure that the supplier delivers the goods as agreed upon and that the buyer does not have to pay for goods that are not delivered. 
  
  How to use it: 
  In SAP MM, deposit requirements can be set up in the purchasing document. The deposit requirement can be set up as a percentage of the total value of the goods or as a fixed amount. The deposit requirement will then be taken into account when creating the purchase order and will be included in the payment terms. 
  
  Tips & Tricks: 
  When setting up a deposit requirement, it is important to consider the supplier’s ability to meet the requirement. If the supplier is unable to meet the deposit requirement, it may be necessary to negotiate different payment terms or find an alternative supplier. 
  
  Related Information: 
  For more information on setting up deposit requirements in SAP MM, please refer to SAP Help documentation.