What is off-contract spend in SAP EPM-SA - SAP Spend Performance Management?

SAP Term: off-contract spend

• Component: EPM-SA

• Component Name: SAP Spend Performance Management

• Description: A measure used to analyze spend where invoices do not have a contract reference and an existing contract could have been used. The purpose is to identify potential maverick spend, or the potential opportunity to negotiate contractual pricing.

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• Key Concepts: 
  Off-contract spend is a term used in SAP Spend Performance Management (EPM-SA) to refer to any spending that is not done through an existing contract. This includes purchases made outside of the normal procurement process, such as direct buys or emergency purchases.
  
  How to use it: 
  In SAP Spend Performance Management, off-contract spend can be tracked and monitored in order to ensure that all spending is done in accordance with company policies and procedures. This information can be used to identify areas where savings can be made, or where additional contracts may be needed.
  
  Tips & Tricks: 
  It is important to monitor off-contract spend closely, as it can quickly add up and become a significant portion of total spending. It is also important to ensure that all off-contract purchases are necessary and are being made in accordance with company policies and procedures.
  
  Related Information: 
  Off-contract spend is closely related to the concept of maverick spending, which refers to any spending that is not done through the normal procurement process. Maverick spending can be a major source of waste and inefficiency, so it is important to monitor and control it closely.