1. SAP Glossary
  2. SAP for Retail
  3. investment buying


What is investment buying in SAP IS-R - SAP for Retail?


SAP Term: investment buying

  • Component: IS-R

  • Component Name: SAP for Retail

  • Description: Retail Procurement of stock over and above usual or current requirements to take account of a forthcoming price change made by a vendor. The price change can result from a vendor promotion or trade deal coming to an end. Since materials are generally sold at a higher price when the cost price is higher, investment buying can increase profits. The quantity to be procured is calculated using a number of different parameters, such as the procurement cost, the storage cost, and the difference between the old and new purchase price.


Smart SAP Assistant

  • Key Concepts: 
    Investment buying is a process in SAP for Retail's IS-R module that allows retailers to purchase goods from suppliers in order to increase their inventory. This process is used to ensure that the retailer has enough stock to meet customer demand. The process involves the retailer making an offer to the supplier, which is then accepted or rejected. If accepted, the retailer pays for the goods and they are delivered to the store. 
    
    How to use it: 
    In order to use investment buying in SAP for Retail's IS-R module, retailers must first create a purchase order for the goods they wish to purchase. This purchase order should include all relevant information such as the quantity of goods, delivery date, and payment terms. Once the purchase order is created, it must be sent to the supplier for acceptance. If accepted, the retailer will pay for the goods and they will be delivered to the store. 
    
    Tips & Tricks: 
    When creating a purchase order for investment buying, it is important to ensure that all relevant information is included. This includes details such as delivery date, payment terms, and any discounts or special offers that may be available. Additionally, it is important to ensure that the supplier has sufficient stock of the goods being purchased in order to avoid any delays in delivery. 
    
    Related Information: 
    Investment buying is just one of many processes available in SAP for Retail's IS-R module. Other processes include sales forecasting, inventory management, and pricing optimization. Additionally, SAP for Retail offers a range of other features such as customer segmentation and loyalty programs.
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