What is secondary compensating product in SAP SD-FT - Foreign Trade?

SAP Term: secondary compensating product

• Component: SD-FT

• Component Name: Foreign Trade

• Description: A product in the category of inward and outward processing or another item not included in primary customs processing.

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• Key Concepts: 
  Secondary compensating product is a term used in SAP Foreign Trade (SD-FT) to refer to a product that is used to compensate for the difference between the value of an export and the value of an import. This product is usually a low-value item, such as a service or a commodity, and is used to balance out the value of the two transactions. 
  
  How to use it: 
  In SAP Foreign Trade, secondary compensating products are used to balance out the value of an export and an import. When creating an export or import document, the user must specify the secondary compensating product and its value. This will be used to adjust the value of the transaction so that it matches the value of the other transaction. 
  
  Tips & Tricks: 
  When selecting a secondary compensating product, it is important to choose one that has a low value. This will ensure that the value of the transaction is not significantly affected by the addition of this product. Additionally, it is important to ensure that the secondary compensating product is not subject to any taxes or duties, as this could affect the overall value of the transaction. 
  
  Related Information: 
  For more information on SAP Foreign Trade and secondary compensating products, please refer to SAP's official documentation on Foreign Trade (SD-FT). Additionally, there are many online resources available that provide detailed information on how to use SAP Foreign Trade and how to select appropriate secondary compensating products.