What is threshold type in SAP PSM-GPR - Procurement for Public Sector?

SAP Term: threshold type

• Component: PSM-GPR

• Component Name: Procurement for Public Sector

• Description: A defined combination of elements consisting of organizational elements, cost accounting elements, and a period of time, for which a threshold value can be specified. Organizational elements could, for example, be the purchasing organization or a position. Cost accounting elements could be cost center, internal order, or work breakdown structure. The time period could be the calendar year or the fiscal year.

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• Key Concepts: 
  Threshold type is a feature of the Procurement for Public Sector (PSM-GPR) component of SAP. It is used to define the limits of a procurement process, such as the maximum amount that can be spent on a particular item or service. The threshold type also determines the type of approval process that must be followed for any procurement that exceeds the defined limit. 
  
  How to use it: 
  The threshold type is set up in the PSM-GPR component of SAP. It can be configured to define the maximum amount that can be spent on a particular item or service. The threshold type also determines the type of approval process that must be followed for any procurement that exceeds the defined limit. 
  
  Tips & Tricks: 
  It is important to ensure that the threshold type is set up correctly in order to ensure that all procurement processes are compliant with applicable laws and regulations. Additionally, it is important to review and update the threshold type regularly in order to ensure that it remains up-to-date with any changes in applicable laws and regulations. 
  
  Related Information: 
  The Procurement for Public Sector (PSM-GPR) component of SAP also includes features such as budgeting, purchasing, and contract management. Additionally, it provides tools for tracking and reporting on procurement activities.