What is percentage-based offset method in SAP MM-PUR - Purchasing?

SAP Term: percentage-based offset method

• Component: MM-PUR

• Component Name: Purchasing

• Description: An offset method whereby you pay the deductible payables, minus a all of the invoices for chargeable components carried forward from the last payment run and b a percentage of the invoices for chargeable components posted since the last payment run. &EXAMPLE& You have deductible payables from a subcontractor totaling JPY 20,000; you have invoiced the same subcontractor for chargeable components totaling JPY 18,000. You deduct 60% of the latter JPY 10,800 from the deductible accounts payable, which means that you owe the subcontractor JPY 9,2000.

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• Key Concepts: 
  The percentage-based offset method is a feature of SAP's Materials Management (MM) Purchasing module. It allows users to define a percentage-based offset for a purchase order, which is then applied to the total amount of the purchase order. This offset can be used to reduce the total cost of the purchase order, or to increase it. 
  
  How to use it: 
  To use the percentage-based offset method, users must first define the percentage-based offset in the purchase order. This can be done by selecting the “Percentage-Based Offset” option in the “Purchasing” tab of the purchase order. Once this is done, users can enter the desired percentage-based offset in the “Offset” field. The total amount of the purchase order will then be adjusted accordingly. 
  
  Tips & Tricks: 
  When using the percentage-based offset method, it is important to remember that the offset will be applied to the total amount of the purchase order, not just to individual items. Therefore, it is important to ensure that the desired offset is entered correctly in order to avoid any unexpected costs or savings. 
  
  Related Information: 
  For more information on using the percentage-based offset method in SAP's Materials Management (MM) Purchasing module, please refer to SAP's official documentation on this topic.