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

SAP Term: total target amount

• Component: MM-PUR-SRC

• Component Name: Product Sourcing

• Description: A sum of target amounts for all items that are included in a sourcing project.

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• Key Concepts: 
  Total target amount is a term used in the SAP MM-PUR-SRC Product Sourcing component. It is the total amount of money that a company has set aside for a particular procurement process. This amount is used to determine the budget for the procurement process and to ensure that the company does not overspend. 
  
  How to use it: 
  The total target amount is set by the company before the procurement process begins. This amount should be based on the estimated cost of the goods or services that are being procured. The total target amount should also take into account any additional costs such as taxes, shipping, and handling fees. Once the total target amount has been set, it should be monitored throughout the procurement process to ensure that it is not exceeded. 
  
  Tips & Tricks: 
  It is important to set a realistic total target amount before beginning a procurement process. This will help to ensure that the company does not overspend and can stay within its budget. Additionally, it is important to monitor the total target amount throughout the procurement process to ensure that it is not exceeded. 
  
  Related Information: 
  The total target amount is closely related to other terms such as budget, estimated cost, and actual cost. It is important to understand how these terms are related in order to effectively manage a procurement process. Additionally, understanding how these terms are related can help companies better manage their budgets and ensure that they do not overspend.