What is fixed price in SAP PLM-PLC - Product Lifecycle Costing?

SAP Term: fixed price

• Component: PLM-PLC

• Component Name: Product Lifecycle Costing

• Description: The fixed cost portion of a price in the transaction currency for each price unit.

Smart SAP Assistant

• Key Concepts: 
  Fixed price is a type of pricing model used in Product Lifecycle Costing (PLM-PLC) in SAP. It is a predetermined price that is agreed upon by both the buyer and seller before the product is delivered. This type of pricing model is beneficial for both parties as it eliminates the need for negotiations and provides a clear understanding of the cost of the product. 
  
  How to use it: 
  In SAP, fixed price can be used when creating a product lifecycle costing plan. When creating the plan, the user will need to enter the fixed price for each item in the plan. This will ensure that the cost of each item is known before delivery and that there are no surprises when it comes to pricing. 
  
  Tips & Tricks: 
  When using fixed price in SAP, it is important to ensure that all parties involved are aware of the agreed upon price before delivery. This will help to avoid any misunderstandings or disputes that may arise due to unexpected costs. Additionally, it is important to keep track of any changes in pricing that may occur during the product lifecycle costing process. 
  
  Related Information: 
  Fixed price is just one type of pricing model used in SAP. Other pricing models include variable pricing, cost plus pricing, and time and material pricing. Each of these models has its own advantages and disadvantages, so it is important to consider which one best fits your needs before making a decision.