What is 'quantity-based penalty costs' in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

quantity-based penalty costs - Overview

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: Costs derived from master data in the quantity-based penalty profile.

quantity-based penalty costs - Details

• 
  Key Concepts: 
  Quantity-based penalty costs are a type of cost associated with Supply Network Planning (SNP) in SAP. This cost is incurred when the quantity of goods delivered is not equal to the quantity ordered. The penalty cost is calculated based on the difference between the ordered and delivered quantities. 
  
  How to use it: 
  In order to use quantity-based penalty costs, you must first set up the cost in the SNP configuration. This includes setting up the cost formula, which determines how the penalty cost is calculated. Once this is done, you can then enter the quantity-based penalty costs into the SNP planning book. 
  
  Tips & Tricks: 
  When setting up the cost formula for quantity-based penalty costs, it is important to consider how much of a penalty you want to impose for each unit of difference between the ordered and delivered quantities. This will help ensure that you are not overcharging customers for late deliveries or undercharging them for early deliveries. 
  
  Related Information: 
  For more information on setting up and using quantity-based penalty costs in SAP, please refer to the official SAP documentation on Supply Network Planning (SNP). Additionally, there are many online resources available that provide step-by-step instructions on how to configure and use this feature in SAP.