What is procurement alternative in SAP CO-PC - Product Cost Controlling?

SAP Term: procurement alternative

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A procurement alternative represents one of a number of different ways of procuring a specific material. You can control the level of detail in which the procurement alternatives are represented through the controlling level. Depending on the processing category, there are single-level and multilevel procurement alternatives. For example, "purchase order" is single-level procurement and "production" is multilevel procurement.

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• Key Concepts: 
  Procurement alternative is a feature of SAP's CO-PC Product Cost Controlling component. It allows users to compare different procurement options for a given material or service, and select the most cost-effective option. This helps to ensure that the company is getting the best value for its money. 
  
  How to use it: 
  To use the procurement alternative feature, users must first define the material or service they are looking to purchase. They can then enter the different procurement options they are considering, such as different suppliers or different delivery methods. The system will then calculate the cost of each option and display them in a comparison table. Users can then select the option that offers the best value for their money. 
  
  Tips & Tricks: 
  When using the procurement alternative feature, it is important to consider all factors that could affect the cost of an option. This includes delivery costs, taxes, and any additional fees that may be associated with a particular option. It is also important to consider any potential risks associated with a particular option, such as quality or reliability issues. 
  
  Related Information: 
  The procurement alternative feature is part of SAP's CO-PC Product Cost Controlling component. Other features of this component include cost center accounting, product costing, and profitability analysis. For more information on these features, please refer to SAP's official documentation.