What is 'floating term' in SAP SD-BF-PR - Pricing and Conditions?

floating term - Overview

• Component: SD-BF-PR

• Component Name: Pricing and Conditions

• Description: Term used in a CPE formula that has the following attributes: Quotation period Filled DCS fields or filled quotation source, quotation type, and quotation name.

floating term - Details

• 
  Key Concepts: 
  Floating terms are a type of payment term in SAP that allows customers to pay for goods or services at any time within a certain period. This payment term is typically used when the customer is uncertain of when they will be able to make the payment. The payment period is usually set by the vendor and can range from a few days to several months. 
  
  How to use it: 
  In SAP, floating terms are set up in the SD-BF-PR Pricing and Conditions component. To set up a floating term, you must first define the payment period and then assign it to the customer. You can also specify any additional conditions such as discounts or penalties that may apply. Once the floating term has been set up, it can be used for any transactions with that customer. 
  
  Tips & Tricks: 
  When setting up a floating term, it is important to ensure that the payment period is long enough for the customer to make their payment but not so long that it becomes difficult to manage. Additionally, it is important to ensure that all conditions associated with the floating term are clearly communicated to the customer. 
  
  Related Information: 
  For more information on setting up floating terms in SAP, please refer to the SAP Help Portal or contact your local SAP support team.