What is global percentage bidding in SAP MM-SRV - External Services?

SAP Term: global percentage bidding

• Component: MM-SRV

• Component Name: External Services

• Description: A competitive bidding procedure used for procuring external services. In global percentage bidding, Purchasing specifies prices for services and provides descriptions of the services. Service descriptions and prices are sent to bidders as individual requests for quotations RFQs. Bidders indicate whether they can do the work for more or less than the rates estimated by Purchasing by submitting quotations showing a percentage addition to or deduction from the specified prices. This percentage addition or deduction is quoted for each group of services outline level or for all services. The global percentage system simplifies the maintenance of service specifications. Because the service descriptions in the bidders' quotations usually do not vary, and only the percentage addition or deduction needs to be entered in the quotation, Purchasing has less work to do than in the case of standard RFQ and quotation processing.

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• Key Concepts: 
  Global percentage bidding is a feature of SAP's MM-SRV External Services component. It allows companies to bid on services from external providers based on a percentage of the total cost of the service. This allows companies to better manage their budget and ensure they are getting the best value for their money. 
  
  How to use it: 
  To use global percentage bidding, companies must first set up a bidding process in SAP. This includes setting up the criteria for the bidding process, such as the percentage of the total cost that will be used for the bid. Once this is done, companies can then submit bids to external providers and compare them to determine which one offers the best value. 
  
  Tips & Tricks: 
  When using global percentage bidding, it is important to consider all factors that may affect the cost of the service. This includes any additional fees or taxes that may be associated with the service, as well as any discounts or incentives that may be offered by the provider. Additionally, it is important to consider any potential risks associated with using an external provider, such as potential delays or quality issues. 
  
  Related Information: 
  For more information on global percentage bidding and other features of SAP's MM-SRV External Services component, please refer to SAP's official documentation. Additionally, there are many online resources available that provide tips and tricks for using this feature effectively.