What is Supplier Evaluation by Price in SAP MM-PUR - Purchasing?

SAP Term: Supplier Evaluation by Price

• Component: MM-PUR

• Component Name: Purchasing

• Description: This KPI helps to determine the score of a given supplier in an organization based on the variance in the price of ordered items and delivered items. The score is calculated over a period of 1 year and is based on the difference in the purchase order amount and invoice amount.

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• Key Concepts: 
  Supplier Evaluation by Price is a feature of the Materials Management (MM) Purchasing component of SAP. It allows users to evaluate suppliers based on their pricing, enabling them to make informed decisions when selecting suppliers. The evaluation is based on the total cost of the goods or services provided by the supplier, including any discounts or other incentives. 
  
  How to use it: 
  To use Supplier Evaluation by Price, users must first create a supplier evaluation profile. This profile contains criteria such as price, delivery time, quality, and service level. Once the profile is created, users can then compare the prices of different suppliers and select the one that best meets their needs. 
  
  Tips & Tricks: 
  When evaluating suppliers based on price, it is important to consider other factors such as quality and delivery time. It is also important to consider any discounts or incentives that may be offered by the supplier. Additionally, it is important to compare prices across multiple suppliers in order to get the best deal. 
  
  Related Information: 
  For more information about Supplier Evaluation by Price in SAP MM Purchasing, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed information about this feature and how to use it effectively.