What is weighting factor in SAP MM - Materials Management?

SAP Term: weighting factor

• Component: MM

• Component Name: Materials Management

• Description: A number by which values are multiplied in order to give them a greater or lesser influence on an overall result. In vendor evaluation, weighting factors are used to assign a greater or lesser weighting to the scores for individual main criteria in the calculation of the overall score.

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• Key Concepts: 
  Weighting factor is a concept used in Materials Management (MM) in SAP. It is used to assign a numerical value to a material or item, which is then used to calculate the total cost of the material or item. The weighting factor is determined by the quantity of the material or item, its price, and any additional costs associated with it. 
  
  How to use it: 
  In order to use the weighting factor, you must first determine the quantity of the material or item, its price, and any additional costs associated with it. Once these values are determined, you can then calculate the weighting factor by dividing the total cost by the quantity of the material or item. This will give you a numerical value that can be used to calculate the total cost of the material or item. 
  
  Tips & Tricks: 
  When calculating the weighting factor, it is important to remember that it should be based on accurate information. If any of the values used in the calculation are incorrect, then the resulting weighting factor will not be accurate. Additionally, it is important to remember that the weighting factor should be updated regularly as prices and costs can change over time. 
  
  Related Information: 
  The weighting factor is closely related to other concepts such as cost accounting and inventory management. It is also important to understand how different materials and items are priced in order to accurately calculate their weighting factors. Additionally, understanding how different materials and items are stored and managed can help ensure that their weighting factors are accurate.