What is fixed price agreement in SAP PS - Project System?

SAP Term: fixed price agreement

• Component: PS

• Component Name: Project System

• Description: An agreement on a fixed price between two subprojects. The two subprojects agree on a fixed price for an activity. In planning, the process is called a fixed price agreement. When they are actual values, the process is called fixed price allocation.

Smart SAP Assistant

• Key Concepts: 
  A Fixed Price Agreement (FPA) is a type of contract used in the SAP Project System (PS) component. It is a legally binding agreement between a customer and a vendor that sets out the terms and conditions of a project, including the price, payment schedule, and scope of work. The FPA is used to ensure that both parties understand the expectations of the project and that all costs are accounted for. 
  
  How to use it: 
  In SAP PS, an FPA can be created by entering the relevant details into the system. This includes the customer name, vendor name, project details, payment terms, and any other relevant information. Once the FPA is created, it can be used to track progress on the project and ensure that all costs are accounted for. 
  
  Tips & Tricks: 
  When creating an FPA in SAP PS, it is important to ensure that all relevant information is included. This includes any additional costs or fees that may be incurred during the course of the project. Additionally, it is important to review the FPA regularly to ensure that all parties are in agreement with the terms and conditions of the agreement. 
  
  Related Information: 
  For more information on creating an FPA in SAP PS, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed information on how to create and manage an FPA in SAP PS.