What is business volume comparison and agreement in SAP MM-PUR - Purchasing?

SAP Term: business volume comparison and agreement

• Component: MM-PUR

• Component Name: Purchasing

• Description: Reconciliation of the business volume figures recorded by a customer and a vendor relating to a certain period of time. This can involve adjusting one or both sets of figures. The purpose is to facilitate the subsequent settlement of amounts due under an end-of-period, volume-based rebate arrangement.

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• Key Concepts: 
  Business Volume Comparison and Agreement (BVCA) is a feature in SAP MM-PUR Purchasing that allows users to compare the volume of goods purchased from different vendors. This comparison helps users to identify the most cost-effective vendor for their needs. The agreement component of BVCA allows users to negotiate with vendors and agree on a price for the goods. 
  
  How to use it: 
  To use BVCA, users must first create a purchase order for the goods they wish to purchase. Once the purchase order is created, users can then compare the volume of goods purchased from different vendors. This comparison will help users identify the most cost-effective vendor for their needs. Once a vendor is selected, users can then negotiate with the vendor and agree on a price for the goods. 
  
  Tips & Tricks: 
  When using BVCA, it is important to remember that the comparison should be based on both price and quality of goods. Additionally, it is important to ensure that all vendors are given an equal opportunity to provide their best offer. Finally, it is important to keep track of all negotiations and agreements made with vendors in order to ensure that all parties are held accountable. 
  
  Related Information: 
  For more information about BVCA, please refer to SAP’s official documentation on Purchasing in MM-PUR. Additionally, there are many online resources available that provide detailed tutorials and best practices for using BVCA in SAP MM-PUR Purchasing.