What is purchase price variance amount in SAP EPM-SA - SAP Spend Performance Management?

SAP Term: purchase price variance amount

• Component: EPM-SA

• Component Name: SAP Spend Performance Management

• Description: A measure used to analyze the difference between PO price and standard cost.

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• Key Concepts: 
  Purchase Price Variance Amount (PPV) is a measure of the difference between the expected and actual purchase price of a product or service. It is used to track and analyze the performance of a company’s purchasing activities. The PPV amount is calculated by subtracting the expected purchase price from the actual purchase price. 
  
  How to use it: 
  The PPV amount can be used to identify areas where cost savings can be achieved. It can also be used to compare different suppliers and determine which one offers the best value for money. Additionally, it can be used to track changes in prices over time and identify trends in pricing. 
  
  Tips & Tricks: 
  When calculating the PPV amount, it is important to take into account any discounts or other incentives that may have been offered by the supplier. Additionally, it is important to consider any additional costs associated with purchasing from a particular supplier, such as shipping or handling fees. 
  
  Related Information: 
  The PPV amount is part of SAP Spend Performance Management (EPM-SA), which provides an integrated solution for managing and analyzing spend data. It enables companies to gain insights into their purchasing activities and identify areas for improvement. Additionally, it provides tools for tracking and analyzing supplier performance, as well as forecasting future spend.