What is addressable spend in SAP (EPM-SA - SAP Spend Performance Management)?

SAP Term: addressable spend

• Component: EPM-SA

• Component Name: SAP Spend Performance Management

• Description: The proportion of Spend that is eligible for spend savings, i.e. the proportion of the cost of a purchase or service that can be reduced by re-letting a contract.

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• Key Concepts: 
  Addressable spend is a term used in SAP Spend Performance Management (EPM-SA) to refer to the total amount of money that can be spent on a particular item or service. It is calculated by taking into account the budget allocated for the item or service, any discounts or rebates that may be available, and any other factors that may affect the total cost. 
  
  How to use it: 
  Addressable spend can be used to help organizations manage their spending more effectively. By understanding the total amount of money that can be spent on a particular item or service, organizations can make better decisions about how to allocate their resources and ensure they are getting the best value for their money. 
  
  Tips & Tricks: 
  When calculating addressable spend, it is important to consider all factors that may affect the total cost. This includes any discounts or rebates that may be available, as well as any taxes or fees that may apply. Additionally, it is important to factor in any potential changes in market prices over time. 
  
  Related Information: 
  Addressable spend is closely related to budgeting and forecasting. By understanding the total amount of money that can be spent on a particular item or service, organizations can better plan for future expenses and ensure they are staying within their budget. Additionally, addressable spend can help organizations identify areas where they may be able to save money by taking advantage of discounts or rebates.