What is Firm Fixed Price in SAP PSM-GPR - Procurement for Public Sector?

SAP Term: Firm Fixed Price

• Component: PSM-GPR

• Component Name: Procurement for Public Sector

• Description: A pricing arrangement in which payment by an organization to a supplier of goods or services is fixed, with no adjustments for performance, for example.

Smart SAP Assistant

• Key Concepts: 
  Firm Fixed Price (FFP) is a type of contract used in the Public Sector Management-Government Procurement (PSM-GPR) module of SAP. It is a type of contract where the buyer and seller agree on a fixed price for goods or services, regardless of any changes in the cost of production or delivery. The buyer is responsible for any additional costs incurred due to changes in the cost of production or delivery. 
  
  How to use it: 
  In order to use FFP contracts, the buyer and seller must first agree on a fixed price for the goods or services. Once this is done, the buyer will be responsible for any additional costs incurred due to changes in the cost of production or delivery. The buyer can then create an FFP contract in SAP and enter the agreed-upon fixed price. 
  
  Tips & Tricks: 
  When creating an FFP contract, it is important to ensure that all parties involved are aware of the terms and conditions of the contract. This includes any additional costs that may be incurred due to changes in the cost of production or delivery. Additionally, it is important to ensure that all parties are aware of their respective responsibilities under the contract. 
  
  Related Information: 
  For more information on FFP contracts, please refer to SAP’s documentation on PSM-GPR Procurement for Public Sector. Additionally, you can find more information on other types of contracts available in SAP, such as Time and Materials contracts and Cost Plus contracts.