What is external value in SAP (EPM-PCM - SAP BusinessObjects Profitability and Cost Management)?

SAP Term: external value

• Component: EPM-PCM

• Component Name: SAP BusinessObjects Profitability and Cost Management

• Description: An external fixed value in addition to that calculated for the item.

Smart SAP Assistant

• Key Concepts: 
  External value is a term used in SAP BusinessObjects Profitability and Cost Management (EPM-PCM). It is a measure of the value of an item or service that is provided by an external source, such as a vendor or supplier. This value is used to compare the cost of an item or service to the value it provides. 
  
  How to use it: 
  External value can be used to determine the cost-effectiveness of a particular item or service. It can also be used to compare different vendors or suppliers and determine which one provides the best value for money. Additionally, external value can be used to assess the overall profitability of a business by comparing the cost of goods and services to their external values. 
  
  Tips & Tricks: 
  When calculating external value, it is important to consider all factors that may affect the cost-effectiveness of an item or service. This includes factors such as quality, delivery time, customer service, and any additional fees or charges. Additionally, it is important to consider any discounts or promotions that may be available from vendors or suppliers. 
  
  Related Information: 
  External value is closely related to internal value, which is a measure of the value of an item or service that is provided internally by a company. Additionally, external value can be used in conjunction with other metrics such as return on investment (ROI) and total cost of ownership (TCO) to assess the overall profitability of a business.