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

SAP Term: target investment

• Component: PUR-PRP

• Component Name: Procurement Planning

• Description: It is the amount of money a sourcing colleague should not exceed for an 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: 
  Target investment is a feature of the SAP PUR-PRP Procurement Planning component that allows users to set a target investment amount for a particular procurement project. This target investment amount is used to guide the procurement process and ensure that the project stays within budget. 
  
  How to use it: 
  To use target investment, users must first set a target investment amount for the project. This can be done in the SAP system by entering the desired amount in the “Target Investment” field. Once this is done, the system will use this amount as a guide for all subsequent procurement activities. 
  
  Tips & Tricks: 
  When setting a target investment amount, it is important to consider all potential costs associated with the project. This includes not only the cost of materials and services, but also any additional costs such as taxes, shipping, and labor. 
  
  Related Information: 
  Target investment is just one of many features available in SAP PUR-PRP Procurement Planning. Other features include budgeting, forecasting, and supplier management.