What is target value in SAP SD - Sales and Distribution?

SAP Term: target value

• Component: SD

• Component Name: Sales and Distribution

• Description: In CRM, the targeted total value of an item that a customer agrees to buy from a vendor within the framework of a contract. The customer uses a release order to release the entire or a partial value from the target value in the contract. In , the target value applies for contracts as well as for scheduling agreements, assortments and credit and debit memo requests.

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• Key Concepts: 
  Target value in SAP Sales and Distribution (SD) is a numerical value that is used to measure the performance of a sales order. It is used to compare the actual performance of a sales order against the expected performance. The target value is calculated based on the quantity, price, and other factors associated with the sales order. 
  
  How to use it: 
  In SAP SD, target values are used to measure the performance of a sales order. To calculate the target value, you need to enter the quantity, price, and other factors associated with the sales order. Once you have entered all the necessary information, you can then calculate the target value for the sales order. 
  
  Tips & Tricks: 
  When calculating target values in SAP SD, it is important to ensure that all of the necessary information is entered accurately. This will ensure that the target value is calculated correctly and accurately reflects the performance of the sales order. 
  
  Related Information: 
  Target values are also used in other areas of SAP such as Materials Management (MM) and Financial Accounting (FI). In MM, target values are used to measure inventory levels and in FI they are used to measure financial performance.