What is 'fixed price allocation' in SAP PS - Project System?

fixed price allocation - Overview

• Component: PS

• Component Name: Project System

• Description: An allocation of 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.

fixed price allocation - Details

• 
  Key Concepts: 
  Fixed price allocation is a feature of the SAP Project System (PS) that allows for the allocation of fixed costs to a project. This feature allows for the accurate tracking of costs associated with a project, and can be used to ensure that the project is completed within budget. 
  
  How to use it: 
  In order to use fixed price allocation, the user must first define a fixed price for the project. This can be done by entering the fixed price in the “Fixed Price” field in the PS Project System. Once this is done, the user can then allocate costs to the project by entering them in the “Cost Allocation” field. The user can also specify which cost elements should be allocated to the project, and how much of each cost element should be allocated. 
  
  Tips & Tricks: 
  When using fixed price allocation, it is important to ensure that all costs associated with the project are accurately tracked and allocated. This will help ensure that the project is completed within budget. Additionally, it is important to keep track of any changes in costs that may occur during the course of the project, as these changes may affect the overall budget. 
  
  Related Information: 
  For more information on fixed price allocation in SAP Project System, please refer to SAP Help documentation at https://help.sap.com/viewer/product/SAP_PROJECT_SYSTEM/731/en-US.