What is indefinite quantity in SAP PSM-GPR - Procurement for Public Sector?

SAP Term: indefinite quantity

• Component: PSM-GPR

• Component Name: Procurement for Public Sector

• Description: Example of an order type used for mixed-use purchase orders. Specifies a line item for which the total quantity that will be ordered is not known at the time of creation.

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• Key Concepts: 
  Indefinite quantity is a type of procurement in the Public Sector Management (PSM-GPR) component of SAP. It is used when the exact quantity of goods or services to be procured is not known in advance. The indefinite quantity contract allows for the procurement of goods or services over a period of time, with the exact quantity and delivery schedule to be determined at a later date. 
  
  How to use it: 
  In order to use indefinite quantity contracts, the buyer must first define the scope of the contract and the terms and conditions that will apply. This includes specifying the type of goods or services to be procured, the maximum amount that can be spent, and any other relevant details. Once this is done, the buyer can then issue an indefinite quantity contract to potential suppliers. The supplier will then submit a bid for the contract, which will include their proposed price and delivery schedule. The buyer can then select a supplier based on their bid and enter into an indefinite quantity contract with them. 
  
  Tips & Tricks: 
  When using indefinite quantity contracts, it is important to ensure that all relevant details are included in the scope of the contract. This includes specifying any quality requirements, delivery schedules, payment terms, and any other relevant details. Additionally, it is important to ensure that all bids are evaluated fairly and objectively in order to ensure that the best supplier is selected for the contract. 
  
  Related Information: 
  Indefinite quantity contracts are just one type of procurement available in SAP PSM-GPR. Other types of procurement include fixed-price contracts, time-and-materials contracts, and cost-plus contracts. Additionally, SAP PSM-GPR also provides tools for managing supplier relationships, tracking procurement costs, and managing inventory levels.