What is Economic Price Adjustment in SAP PSM-GPR - Procurement for Public Sector?

SAP Term: Economic Price Adjustment

• Component: PSM-GPR

• Component Name: Procurement for Public Sector

• Description: A pricing condition that reflects changes in market conditions of a specific item. Also used as an anticipated inflation rate.

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• Key Concepts: 
  Economic Price Adjustment (EPA) is a feature of the SAP PSM-GPR Procurement for Public Sector component that allows for the automatic adjustment of prices in contracts based on economic indicators. This feature helps to ensure that contracts remain up-to-date and in compliance with current market conditions. 
  
  How to use it: 
  To use the EPA feature, you must first configure the system to recognize the economic indicators that will be used to adjust prices. This includes setting up the relevant tables and parameters, as well as defining the rules for how prices should be adjusted. Once this is done, the system will automatically adjust prices in contracts based on changes in the economic indicators. 
  
  Tips & Tricks: 
  When configuring the EPA feature, it is important to ensure that all relevant economic indicators are taken into account. This will help to ensure that prices are adjusted accurately and in a timely manner. Additionally, it is important to regularly review and update the rules for how prices should be adjusted, as market conditions can change over time. 
  
  Related Information: 
  For more information about using the Economic Price Adjustment feature of SAP PSM-GPR Procurement for Public Sector, please refer to the official SAP documentation. Additionally, there are many online resources available that provide helpful tips and tricks for using this feature.