What is pricing arrangement in SAP PSM-GPR - Procurement for Public Sector?

SAP Term: pricing arrangement

• Component: PSM-GPR

• Component Name: Procurement for Public Sector

• Description: An agreement between contractual partners whereby the price paid for goods and services can consist of multiple components, for instance, reimbursement of costs, plus a fixed fee profit, plus a sum based on performance. Such agreements are particularly suited to public sector procurement, where complex projects may consist of several stages such as research, development, manufacturing, and support. In such cases, different pricing arrangements are suitable for the separate stages. A pricing arrangement can be assigned to a line item in a purchasing document, allowing complex contracts with a different pricing arrangement for each line item. Each pricing component belonging to a line item can be assigned separate accounting information and have separate follow-on documents posted.

Smart SAP Assistant

• Key Concepts: 
  Pricing Arrangement is a feature of the PSM-GPR Procurement for Public Sector component of SAP. It allows users to define and manage pricing arrangements for goods and services that are procured from suppliers. This includes setting up pricing rules, discounts, and other conditions that will be applied to the purchase order. 
  
  How to use it: 
  To use the Pricing Arrangement feature, users must first create a pricing arrangement in the system. This can be done by entering the relevant information such as supplier, item, and pricing rules. Once the pricing arrangement is created, it can be applied to purchase orders when creating them. 
  
  Tips & Tricks: 
  When creating a pricing arrangement, it is important to ensure that all relevant information is entered correctly. This includes the supplier, item, and pricing rules. Additionally, users should ensure that the pricing arrangement is set up correctly so that it can be applied to purchase orders without any issues. 
  
  Related Information: 
  For more information on how to use the Pricing Arrangement feature in SAP PSM-GPR Procurement for Public Sector, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed tutorials on how to use this feature.