What is 'negotiated spend' in SAP EPM-SA - SAP Spend Performance Management?

negotiated spend - Overview

• Component: EPM-SA

• Component Name: SAP Spend Performance Management

• Description: The contractual amount agreed upon by the buyer and supplier.

negotiated spend - Details

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  Key Concepts: 
  Negotiated Spend is a term used in SAP Spend Performance Management (EPM-SA) to refer to the amount of money that has been agreed upon between two parties for a particular purchase. This amount is typically lower than the original asking price, and is the result of negotiations between the buyer and seller. 
  
  How to use it: 
  Negotiated Spend can be used to track and monitor spending within an organization. It can be used to compare actual spending against budgeted amounts, as well as to identify areas where savings can be made. Negotiated Spend can also be used to ensure that all purchases are made at the best possible price. 
  
  Tips & Tricks: 
  When negotiating with suppliers, it is important to remember that the goal is not necessarily to get the lowest price, but rather to get the best value for money. It is also important to ensure that all negotiations are conducted in a fair and transparent manner. 
  
  Related Information: 
  Negotiated Spend is closely related to other terms such as “cost savings” and “cost avoidance”. Cost savings refers to the amount of money saved by making a purchase at a lower price than originally planned, while cost avoidance refers to the amount of money saved by avoiding making a purchase altogether.