What is target amount in SAP MM-PUR-SRC - Product Sourcing?

SAP Term: target amount

• Component: MM-PUR-SRC

• Component Name: Product Sourcing

• Description: Estimated costs for sourcing of an item in a sourcing project that should not be exceeded. A number of monetary units specified in a currency.

Smart SAP Assistant

• Key Concepts: 
  Target amount is a feature in SAP MM-PUR-SRC Product Sourcing that allows users to set a target amount for a purchase order. This target amount is the maximum amount that the user is willing to spend on the purchase order. The target amount is used to control the total cost of the purchase order and ensure that it does not exceed the user's budget.
  
  How to use it: 
  To use the target amount feature, users must first set a target amount for the purchase order. This can be done by entering the desired target amount in the “Target Amount” field of the purchase order. Once this is done, users can then add items to the purchase order and the total cost of the purchase order will be automatically calculated and compared to the target amount. If the total cost exceeds the target amount, users will be notified and they can then adjust their selections accordingly.
  
  Tips & Tricks: 
  When setting a target amount for a purchase order, it is important to remember that this is only an estimate and not an exact figure. It is also important to keep in mind that taxes and other fees may be added to the total cost of the purchase order, so it is important to factor these into your budget when setting a target amount.
  
  Related Information: 
  For more information on SAP MM-PUR-SRC Product Sourcing, please refer to SAP's official documentation here: https://help.sap.com/viewer/product/MM_PUR_SRC/latest/en-US