What is Fixed Price with Retroactive Price Redetermination in SAP PSM-GPR - Procurement for Public Sector?

SAP Term: Fixed Price with Retroactive Price Redetermination

• Component: PSM-GPR

• Component Name: Procurement for Public Sector

• Description: A pricing arrangement where an organization and supplier agree on an upper limit to the price for goods or services, with a stipulation that the pricing is reevaluated after delivery or performance and adjusted, if necessary.

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• Key Concepts: 
  Fixed Price with Retroactive Price Redetermination is a procurement process in the Public Sector Management (PSM-GPR) component of SAP. This process allows for the retroactive redetermination of prices for goods and services that have already been procured. This means that the price of goods and services can be adjusted after they have been purchased, based on changes in market conditions or other factors. 
  
  How to use it: 
  In order to use Fixed Price with Retroactive Price Redetermination, the user must first create a purchase order for the goods or services they wish to purchase. Once the purchase order is created, the user can then enter the fixed price for the goods or services. The user can then enter any additional information that may be required, such as discounts or taxes. Once all of the information is entered, the user can submit the purchase order for approval. 
  
  Once the purchase order is approved, the user can then enter any changes in market conditions or other factors that may affect the price of the goods or services. The user can then adjust the price accordingly and submit it for approval. Once approved, the new price will be applied retroactively to all purchases made under that purchase order. 
  
  Tips & Tricks: 
  When using Fixed Price with Retroactive Price Redetermination, it is important to keep track of any changes in market conditions or other factors that may affect the price of goods and services. This will ensure that any adjustments made to prices are accurate and up-to-date. Additionally, it is important to ensure that all information entered into the purchase order is accurate and up-to-date in order to avoid any discrepancies when adjusting prices. 
  
  Related Information: 
  For more information on Fixed Price with Retroactive Price Redetermination, please refer to SAP Help documentation at https://help.sap.com/viewer/product/PSM_GPR/latest/en-US/f9f8d7a3c2b14e6f9a7d3c8b2f5e4d1a.html