What is under-delivery tolerance in SAP AP-PCP - SRM Purchasing Contract Processing?

SAP Term: under-delivery tolerance

• Component: AP-PCP

• Component Name: SRM Purchasing Contract Processing

• Description: The percentage of an item below the quantity or value stated in the contract that an enterprise is willing to accept.

Smart SAP Assistant

• Key Concepts: 
  Under-delivery tolerance is a feature of SAP's Purchasing Contract Processing (AP-PCP SRM) component that allows buyers to accept a certain amount of under-delivery of goods or services from suppliers. This feature allows buyers to set a tolerance level for the amount of under-delivery that they are willing to accept from suppliers. 
  
  How to use it: 
  Under-delivery tolerance can be set in the Purchasing Contract Processing (AP-PCP SRM) component. To do this, buyers must first create a purchasing contract and then select the “Under-Delivery Tolerance” option. From there, buyers can set the tolerance level for the amount of under-delivery that they are willing to accept from suppliers. 
  
  Tips & Tricks: 
  When setting an under-delivery tolerance, it is important to consider the impact that this will have on the overall cost of goods or services purchased from suppliers. Buyers should also consider the potential impact on supplier relationships when setting an under-delivery tolerance. 
  
  Related Information: 
  For more information about Purchasing Contract Processing (AP-PCP SRM) and its features, please refer to SAP's official documentation. Additionally, buyers may find it helpful to consult with their SAP support team for further guidance on setting an under-delivery tolerance.