What is firm/trade-off zone in SAP MM-PUR - Purchasing?

SAP Term: firm/trade-off zone

• Component: MM-PUR

• Component Name: Purchasing

• Description: A time zone defined in the delivery schedule that determines the level of commitment of schedule lines. There is a firm zone and a trade-off zone. Both are specified in days. &EXAMPLE& If the firm zone is 20 days, all schedule lines with delivery dates no more than 20 calendar days in the future from the current date are regarded as "firm" they are fully binding orders or purchase commitments.

Smart SAP Assistant

• Key Concepts: 
  The firm/trade-off zone in SAP MM-PUR Purchasing is a feature that allows users to set a range of acceptable prices for goods and services. This range is known as the firm/trade-off zone and it is used to determine when a purchase order should be issued. The firm/trade-off zone is set by the user and can be adjusted as needed. 
  
  How to use it: 
  To use the firm/trade-off zone in SAP MM-PUR Purchasing, the user must first set the range of acceptable prices for goods and services. This range should be based on the user's budget and other factors such as market conditions. Once the range has been set, the system will automatically issue a purchase order when the price of an item falls within the specified range. 
  
  Tips & Tricks: 
  When setting the firm/trade-off zone, it is important to consider all factors that may affect the price of an item. This includes market conditions, availability of goods, and any discounts or promotions that may be available. Additionally, it is important to regularly review and adjust the firm/trade-off zone as needed to ensure that it remains within budget. 
  
  Related Information: 
  For more information on using the firm/trade-off zone in SAP MM-PUR Purchasing, please refer to SAP's official documentation on the topic. Additionally, there are many online resources available that provide tips and tricks for using this feature effectively.