What is guaranteed value in SAP SD - Sales and Distribution?

SAP Term: guaranteed value

• Component: SD

• Component Name: Sales and Distribution

• Description: The value of a document covered by payment guarantee such as a letter of credit. &EXAMPLE& A letter of credit covers 70% of the value and credit management covers the remaining 30%.

Smart SAP Assistant

• Key Concepts: 
  Guaranteed value is a feature in SAP Sales and Distribution (SD) that allows customers to set a minimum value for their orders. This ensures that the customer will receive the minimum value they have set, even if the actual order value is lower. 
  
  How to use it: 
  To use guaranteed value, customers must first set a minimum order value in the system. This can be done by entering the desired value in the “Guaranteed Value” field when creating an order. Once this is done, the system will automatically calculate the minimum order value and ensure that it is met. 
  
  Tips & Tricks: 
  When setting a guaranteed value, it is important to consider the cost of goods and services that will be included in the order. This will help ensure that the customer receives the desired minimum value for their order. 
  
  Related Information: 
  For more information on guaranteed value in SAP SD, please refer to SAP’s official documentation on the topic.