What is rate unit in SAP (SD - Sales and Distribution)?

SAP Term: rate unit

• Component: SD

• Component Name: Sales and Distribution

• Description: A unit that defines whether a condition is a percentage value or an amount in currency. The rate unit is dependent on the condition type, for example, whether the condition is a material price or a discount.

Smart SAP Assistant

• Key Concepts: 
  Rate unit is a term used in SAP Sales and Distribution (SD) to refer to the unit of measure used to calculate the rate of a product or service. It is used to determine the price of a product or service based on the quantity of the item purchased. The rate unit can be set up in the system and can be changed depending on the customer's needs. 
  
  How to use it: 
  In SAP SD, rate units are used to calculate the price of a product or service. To set up a rate unit, go to the Sales and Distribution (SD) module and select “Rate Unit” from the menu. Enter the desired rate unit and save it. The rate unit can then be used when creating a sales order or quotation. 
  
  Tips & Tricks: 
  When setting up a rate unit, make sure that it is consistent with other rate units in the system. This will ensure that all prices are calculated correctly and that customers are not overcharged for their purchases. Additionally, it is important to keep track of any changes made to rate units as this could affect pricing for customers. 
  
  Related Information: 
  For more information on setting up rate units in SAP SD, please refer to the SAP Help documentation. Additionally, there are many online resources available that provide detailed instructions on how to set up and use rate units in SAP SD.