What is reference investment in SAP PUR-PRP - Procurement Planning?

SAP Term: reference investment

• Component: PUR-PRP

• Component Name: Procurement Planning

• Description: The approved amount of an equivalent item from a similar, older project. It is used as reference to justify the amount planned for the current item. Investment values are entered on item level and then aggregated on subproject and project level for further use. The costs that are calculated in SAP S/4HANA for procurement planning are only tooling costs.

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• Key Concepts: 
  Reference investment is a feature of the SAP PUR-PRP Procurement Planning component that allows users to plan and manage investments in procurement projects. It enables users to define and track the costs associated with a project, such as materials, labor, and overhead. The reference investment feature also allows users to compare the actual costs of a project with the planned costs. 
  
  How to use it: 
  To use the reference investment feature in SAP PUR-PRP Procurement Planning, users must first define the project and its associated costs. This includes defining the materials, labor, and overhead associated with the project. Once these costs have been defined, users can then enter the planned costs for each item into the system. The system will then compare the actual costs of the project with the planned costs and provide a report on any discrepancies. 
  
  Tips & Tricks: 
  When using the reference investment feature in SAP PUR-PRP Procurement Planning, it is important to ensure that all of the associated costs are accurately entered into the system. This will ensure that any discrepancies between actual and planned costs are accurately reported. Additionally, it is important to regularly review and update the planned costs for each item in order to ensure that they remain accurate. 
  
  Related Information: 
  For more information on using reference investment in SAP PUR-PRP Procurement Planning, please refer to SAP’s official documentation on the topic. Additionally, there are many online resources available that provide tutorials and tips on how to use this feature effectively.